Chennai has overtaken Bengaluru in terms of upbeat residential realty activity. A recent report ‘Chennai: From Resilience to Growth’ confirms that the city is only behind Hyderabad in unsold stock numbers, and has the second-lowest unsold housing inventory of top seven cities in India.
According to the study by Anarock, residential supply and absorption in Chennai were relatively balanced till 2015. Thereafter, housing supply dropped due to natural calamities, political ambiguity and the overall economic upheavals in the country.
“The current trend of softening average property prices is generating increasing end-user demand. The growth of Chennai’s residential market rests on a sure foundation of controlled supply dominated by affordable housing coupled with bottomed-out property prices. Software as a service (SaaS) and automobile sectors now drive the bulk of residential demand in Chennai,” it said.
Highlighting the many positives that drive the Chennai real estate market, the study covers the expansion and growth of the IT-ITeS and manufacturing sectors in the city.
With major infrastructure initiatives supporting this growth, increasing interest of global investors is driving investments into Chennai. Chennai’s ability to respond to various external and internal influences maturely and agilely have worked well for the city. Having already beaten considerable odds, Chennai now draws on its inherent economic strengths of rising exports of its IT/ITeS and automobiles industries.
Chennai’s economy, banking on the automobile, manufacturing and IT-ITeS sectors, yielded an estimated GDP of USD 78.6 billion in 2018. The city contributes 14 per cent to the country’s IT services, making it the second largest exporter. It also hosts 40 per cent of the automobile production in the country.