Real Estate: Residential Sales Up 59% in Chennai in Q4 2020, says JLL Research

There is a pronounced improvement in the real estate segment in Chennai, as the city has witnessed a total sale of 2,500 units in Q4 2020 in contrast with 1,570 units sold in Q3 2020, logging an upward tick of 59%.

Real Estate: Residential Sales Up 59% in Chennai in Q4 2020, says JLL Research

As per the JLL Research, the sales was mostly concentrated in the southern suburbs submarket, which accounted for 60% of total sales in the quarter. Furthermore, new launches in Q4 2020 almost doubled in comparison with the previous quarter. Of paramount importance is the fact that the new launches during the quarter crossed the pre-COVID-19 average quarterly levels of ~1900 units witnessed in 2019.

Chennai residential market continues momentum

 

 

 

 

2019

 

 

 

2020

 

 

 

Q1 2020

 

 

 

Q2 2020

 

 

 

Q3 2020

 

 

 

Q4 2020

Growth

Q4 2020

over

Q3 2020

Launches

(units)

 

7,673

 

7,135

 

2,574

 

182

 

1,487

 

2,892

 

94%

Sales

(units)

 

13,967

 

6,983

 

2,453

 

460

 

1,570

 

2,500

 

59%

Average

Prices

(INR/sqft)

 

 

4,585

 

 

4,585

 

 

4,585

 

 

4,585

 

 

4,585

 

 

4,585

 

 

Source:  Real Estate Intelligence Service (JLL), 2020, JLL Research

The Southern suburbs such as Padur, Sholinganallur, Perumbakkam and Navalur submarket accounted for 62% of the new launches during the quarter, the research revealed. What’s more, 95% of the new launches during the quarter were in the sub Rs.1 crore category.

Siva Krishnan, Managing Director and Head, Residential Services, JLL India

Siva Krishnan, Managing Director and Head, Residential Services, JLL India said: “The translation of pent up demand into sales, aided by historically low interest rates, flexible payment schemes and discounts offered by the developers led to an increased
momentum in the offtake of residential units. Maximum sales traction was witnessed in the affordable and lower-mid segments. At the same time, there is a growing demand for larger sized homes as preferences are shifting towards homes with more open spaces and study rooms.”

While quoted residential prices remained stagnant, developers are offering various financial schemes, lower booking amounts and other freebies to attract home buyers, the study added.

JLL is a US based professional services firm specialised in the real estate. In India, the company has an extensive presence across ten major cities (Mumbai, Delhi NCR, Bangalore, Pune, Chennai, Hyderabad, Kolkata, Ahmedabad, Kochi and Coimbatore) and over 130 Tier-II and Tier-III markets with a cumulative strength of close to 12,000 professionals. Headquartered out of Mumbai, HKK is India’s premier and largest professional services firm specializing in real estate, covering various asset classes such as commercial, residential, industrial, retail, warehouse and logistics, hospitality, healthcare, senior living, data centre and education.