Residential segment in Chennai records 3% year-on-year growth: Knight Frank India report

Chennai: The residential market in Chennai witnessed a 3 per cent growth during the first six months of the year as compared to last year, indicating a positive sales momentum in the real estate sector, a study conducted by leading international property consultant Knight Frank India has said.

Commercial space transactions also grew during the period, registering a 107 per cent growth to 4.5 million sq ft, the study, whose findings were released on Wednesday said. Accordingly, the metro recorded sales of 7,150 housing units in H1 of 2023 as against 6,951 housing units sold in the same period of last year. The launch of new homes by property developers also grew by 7 per cent year-on-year to 8,122 for the six-month period ending June 30, 2023 from 7,570 units sold in the corresponding period of last year, the report has revealed.

The average price of residential properties in Chennai also grew to 3 per cent, the study said. Property sales in the southern and western pockets of Chennai accounted for 89 per cent of sales, with Old Mahabalipuram Road and the Grand Southern Trunk Road being the most popular locations. As many as 8,122 residential units were launched by realty developers during January-June 2023 which saw a 7 per cent increase compared to last year. Medavakkam, Navalur, Siruseri and Thoraipakkam in Old Mahabalipuram Road witnessed increased developmental activity during the period, it said.

In the commercial space, the Chennai office space market grew by 107 per cent in leasing volumes during January-June 2023 recording 4.5 million sq ft, driven by strong leasing momentum by several companies. Offshore units of multinational companies described as the Global Capability Centres (GCC) accounted for the majority of transactions in Chennai during the first six months of the period ending June 30, 2023, the report added.