The covid 19 pandemic hit the housing market or property buying trend in Chennai- the capital metropolis of the Indian state of Tamil Nadu. Undoubtedly, the pandemic was an unforeseen crisis for the entire world, and India was no exception. It was true that in March 2020, we thought we needed to go through the lockdown for just 21 days, after which we would enjoy our regular routine. But truth be told, it did not. Before we could even guess, India also entered the second wave of the pandemic situation.
After this adverse situation, a significant portion of laborers returned home, the supply chain got damaged, and as a result, builders became helpless in the middle of that situation.
Many deals were terminated due to the effect on cash and other crises. Many investors also pulled back their money invested in those builders’ projects. This situation worsened the overall condition, and the real estate or property buying trend in Chennai started to face the darkest period for over five months.
After a long time of slowdown in preparing for new units, developers started to create a new way to bring back all laborers to work. Developers began taking steps to get back all of their workers and laborers by conducting private bus services and other transport benefits. However, Tamil Nadu Real Estate Regulatory Authority has granted the extended deadlines of all ongoing projects for six months. This was possible based on “Force Majeure,” furnished under section 6 of the Real Estate Act 2016.
After all these steps taken by all regulatory authorities, the annual reports of 2020 showed that the real estate industry started to bounce back to normal. That annual report also said that, hopefully, all projects and the momentum of projects would end within the year 2021.
Chennai property market analysis: Effects on the real estate industry
Any mega-city you pick will depend on various commercial activities and industry growth in the city. Chennai is also not an exception. This city’s real estate market or property buying trend is also wholly dependent on the maturation and expansion of all industrial sectors and commercial actions.
Chennai has a vast market of industries like automobiles, oil and petroleum, software services, information technology, medical tourism, hardware manufacturing, and financial services that help develop the city. These industries owned many corporate houses that have been significant contributors to the overall property buying and selling market in Chennai.
It was mentioned that 5150 housing units were launched between 2015 and 2019. The industrial sectors and metro rail formation have fuelled the real estate sector’s growth and development.
Just before the pandemic in 2020, Chennai witnessed a yearly rise of 8% in various residential properties too, and the Southern part of Chennai holds the maximum number of sales.
But later that year, there were no such notable development remarks in 2020. However, the graph for rental property business showed a small upscale of 1% on average year-on-year. All tenants like to make purchases of a small circle of localities where better infrastructure and transportation connectivity are available. This change was shown in both the northern and southern parts of Chennai.
Soon, the real estate industry or property purchasing industry in the capital city of Tamil Nadu also mentioned that a slight change had shown up. Also, this industry experienced an increasing demand and supply graph, nearly 20 percent, surpassing any other big enterprise.
Real Estate Industry situation in the year 2021 in Chennai
The advent of the Covid 19 pandemic has moved customers to energy-efficient and eco-friendly buildings. Also, new-age buyers and nature saviors are looking for real estate properties that provide them with lots of amenities that focus on the health and wellness of individuals and society.
Some people also demand green amenities, including solar panels for electricity, a rainwater harvesting system, and highly efficient lighting. Keeping these unique demands and factors in mind, developers and real estate property owners are focusing on a new form of a building known as integrated gate townships. These townships are going on the top of preferred real estate properties. These integrated gated townships provide buyers with all sorts of modern amenities, an adequately organized real estate set up, and, of course, a holistic mix that is easy to catch the eyes of buyers. All of these include modern amenities, green open space for individuals, commercial center activities, and whatnot. These integrated townships are expected to increase the sales rate by the end of 2022.
Already 2021 has experienced a tremendous demand for all those properties, and buyers are showing their interest in those real estate properties more. Even a significant group of people are showing their interest in housing complexes that may accommodate work from home situations. Taking this situation into account, the Indian government has also contributed and grabbed a few relief measures to decrease the severe effects of covid 19 conditions. The Indian government is also attempting to help to enhance liquidity and relieve credit flow. The government, along with the state government, is trying to ease the project delivery pressure on building developers as well as real estate property owners.
The government is also trying to help developers to carry out all of their property projects without any kind of extra financial burden. It will also help buyers to get their projects delivered within the stipulated period.
2020 to 2021 real estate detailed breakdown after covering covid 19 pandemic situation
Though the first wave of covid 19 pandemic had broken the whole situation of real estate properties, in the year 2021, the problem started to come back to the everyday life. But still, there are a few things that were not good enough to be reported.
The housing market in Chennai experienced a massive failure at the start of 2021, which showed that sales and new supply failed to individually cross the 1,000 mark. During the April-June quarter of 2021, only a total of 490 new units were launched. But only a total of 709 homes were sold during the three-month period. This report was shared by a report titled ‘Real Insight (Residential) – April-June (Q2) 2021’. This report was an analysis of India’s eight prime residential markets by online real estate company PropTiger.com.
Next quarter has something different, though. Porur, Siruseri, Tiruvallur, Pallikaranai, and East Tambaram have faced significant new sales. The price bracket was as lower as possible; it was ₹45 lakh. As per the report, it accounted for 84% of the launches. Also, within the total sales, 4p% were concentrated in the ₹45 lakh to ₹75 lakh price bracket.
Places like Pallikaranai, Pallavaram, Perumbakkam, and Padur in Chennai south and Mogappair in Chennai west also started to be on the preferred list of new home buyers.
According to the report, it was also mentioned that unsold inventory in Chennai saw a marginal increase of 3% year-on-year in Q2 2021. However, there were reasons like muted launches as well as stagnant sales velocity. The report is also saying that nearly 42 months will be enough to liquidate the present stock corresponded to 36 months in the same period the previous year.
The scenario of Chennai and the property buying trend in 2022
As of now, Chennai is recovering from the massive slowdown between the covid 19 pandemic situation, and new home buyers are trying to upgrade their lifestyles and home designs. Chennaites have always valued family the most, and this thought was reflected in the way when they requested builders and developers to think more significantly with a better version of the plan.
Nowadays, in Chennai, builders and property managers are getting that residents of Chennai are choosing good amenities, style, and comfort along with staying along with familial bonds.
Amenities or factors in demand in the year 2022
New age home buyers are looking for grand houses though Chennai has always shown up with bigger houses than any other metro city. This demand is now pairing up with other modern amenities, which is creating the make or break situation for all real estate property owners or developers.
A superior property company owner mentioned that in previous times, people loved to stay with their natives, but gradually, many changes are coming to society. People realize a need to own suitable dwellings with all facilities and amenities, which has increased the sale of larger integrated units.
This makes sense why sales increased significantly from July 2021 onwards. It is also considered that the sales will be increased in the coming days.
Price is one of the most significant factors when buying a home or dwelling. The price makes the firm decision of choosing the property with mid-affordable as well as luxurious amenities. This is becoming a healthy mix of demand from most new-age buyers.
Though the overall price has increased, there is a massive increase in the emergence of inexpensive and lower-mid projects, which cost roughly 25 lakhs to 50 lakhs. Various things that affect the price range are a perfect place, space for larger-sized apartments, and good social and physical infrastructure. These factors are attracting people as well as these are responsible for the increase in the price.
Physical amenities like a walking ground, children’s park, gym, conference room, shopping places, salon, food zones, etc., are on the top of the wishlist of new age home buyers. Significantly, the young generation is searching for properties with these kinds of amenities where they can actively join without any extra hidden charge.
Types of different properties that are getting the top positions in Chennai
Usually, in Chennai, a few specific types of houses are available. Those are RK or Studio rooms, 1, 2, and 4… BHKs, duplexes, apartments, villas, independent houses, penthouses, villaments, bungalows, and farmhouses.
RK or Studio rooms are famous among people coming from outer states or cities for jobs or studies. These rooms do not have separate bedrooms or a living room.
1, 2, and 4 BHK’s are famous among families who are in Chennai with settlement wishes for a lifetime. Duplex also can be quite the same. A duplex is a two-floor house, and it can be an apartment or an independent house. Duplex houses include a living room, a kitchen with a dining area, and a sitting room/ area on the lower floor. On the other hand, bed rooms are on the upper floor.
Apartments with modern green amenities attract people more, which is a housing complex where many families can stay in the same apartment but in different houses on different floors.
Villas and villaments are pricey versions of real estate properties that are famous among higher-class people who want to stay in luxury.
Penthouses are also a luxury demand of people who want to distinguish their house from others in every possible aspect.
Independent houses are the most common living places, though. These houses are found in every corner of Chennai, which may have any kind of room per the house owners’ choice.
Well, here we are, almost at the end of the context. It is sure that after all covid 19 situations, the real estate property trend is changing every single day. In the near future, Chennai will gain the same real estate purchasing momentum due to the increase in IT, urbanization, and affordable housing development. Day by day, Chennai is attracting a lot of foreign investment due to the rise in real estate. After general information, Chennai is undoubtedly going to a new version of the property trend by the end of 2022.