Chennai Q3 2021: New residential unit launches in Q3 2021 declined by 4% against previous quarter

Around 2,975 units have been launched in Chennai in the current quarter, contributing approx. 5% of the total new supply across the top 7 cities in India

File photo
File photo

Over 80% of Chennai’s new supply in the quarter was launched in the southern part of the city, followed by 14% in West Chennai. Strong residential demand due to IT-ITeS development in these zones is prompting developers to launch new units here. The Central and North Chennai together contributed around 5% of the city’s new launches. In terms of the ticket-size split, affordable housing dominated the market, contributing 57% of the new
launch supply. Mid-segment launches accounted for 27% and the rest fell in
the premium housing category

Sales Trend

Absorption of housing units outperformed the new launch supply in Q3 2021.

During Q3 2021, nearly 3,405 units were sold, depicting a 114% Q-o-Q increase and 113% Y-o-Y increase. Nearly 96% of the residential sales are concentrated in South and West Chennai with 72% and 24% respectively. Strong growth in commercial realty sector, emergence of business parks coupled with good connectivity has been driving residential demand, particularly in South Chennai. North Chennai sold approx. 4% of the available units while the Central zone sold negligible number of housing units

Available Inventory

Chennai continues to have the lowest available inventory amongst all top 7 cities

Around 37,315 units are available for sale in Q3 2021, dropping by 1% compared to the earlier quarter and a 13% increase against same period last year. Similar to launches and sales of housing units in Chennai, majority of the available inventory is concentrated in South and West Chennai, contributing 67% and 27% units respectively. Nearly 61% of the available inventory is dominated by units falling in the < INR 80 Lakh category, with mid-
segment homes having the highest share (39%). The inventory overhang of Chennai
has dropped by 10 months compared to previous quarter - from 53 months in Q2 2021 to 43 months in the current quarter

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