Chennai, July 26, 2017 Chennai real estate market has remained stable over last few quarters without any major fluctuations in the average price level leading to a hike in the number of new property seekers, said Mr. Sudhir Pai, CEO, Magicbricks.
“In the last few years real estate haven’t gone through the best of patches, prices have remained flat, markets have risen but we are witnessing some interesting trends. The number of active property seekers in Chennai have shot up from 20,900 in July’16 to 29,300 in June’17, a sharp rise of 40 percent. The number of new property seekers have also increased to 13,200 to 11,300 and this is a very significant signs for the real estate industry. There are green shoots appearing in the industry and this data is vindication of that prices have remained flat to the new buyers,” said Mr. Pai during a roundtable discussion here on Tuesday
Quoting the latest Consumer Search Trends Report of Magicbricks on Chennai Market, Mr. Pai said that 6 months after demonetization was announced, there seems to be no major impact on Chennai realty market. Chennai is one of the only two cities in Apr-Jun 2017 quarter with more than 1% growth in average price level.
Magicbricks data also suggested that around 69% localities across Chennai had price gains. Localities in mid (Rs 5,000-6,000 per sq.ft) and highest (Rs 11,000+ per sq.ft) price brackets had the biggest price gains in the range of 1.5%-2.5%.
“The number of older property seekers have also grown significantly by almost 68% from 9,600 to 16,100 users during the same period. This is because of the fact that the average home buying process has also increased from 4.1 months to 7.4 months,” Mr. Pai added.
In a market where consumers prefer Ready-to-move (RM) properties to remove completion risk, Chennai is one of the few cities where price of Under-Construction (UC) properties is higher than RM properties. However, there has been a significant growth in property demand in the past one year both in Ready to move (RM) in and under construction segment (UC). Under Construction properties have the highest premium of over 11% over RM properties amongst 14 major cities.