Chennai real estate has suffered a major jolt as three of its leading builders, DLF, Hirco and Hiranandani, have been removed from the builders’ body, the Confederation of Real Estate Developers’ Association of India (CREDAI ). Yet another major builder, Vijay Shanthi, has opted out of CREDAI membership on its own. Trouble is brewing in CREDAI’s Karnataka unit too, where four builders have been expelled.
In contrast to what was been witnessed in many of the more volatile cities over the last couple of years, Chennai’s residential property market saw steady growth in terms of pricing, demand and supply. Chennai’s residential property market is predominantly end user driven, and this fact did a lot to sustain consistent absorption throughout 2011.
During the economic downturn of 2008, while the other neighbouring and glamorous property market of Bangalore and Hyderabad fell by 24-29 per cent, the Chennai market fell only 8.3 per cent. Limited supply of land and pent-up demand is how NHB’s Residex defines Chennai property market.
The Mumbai-based Godrej Properties, the real estate development arm of the Godrej Group, announced on Friday, Feb 10, the launch of its first residential project, Godrej Palm Grove, in Chennai.
The Confederation of Real Estate Developers’ Association of India (CREDAI) has put house buyers’ grievance redressal mechanism on the fast track by introducing an e-based redressal system.
Even as global economic slowdown and uncertainty in financial markets have battered the real estate industry countrywide, properties in Kolkata and Chennai bucked the trend with steady demand in affordable and mid-segment housing.
The demand for office space in Chennai is expected to dip, with an expected slowdown in North American and European countries affecting the information technology sector.
Ever since the National Housing Bank (NHB) started preparing residex – an index for tracking the prices of residential properties in 2007, Chennai has been in the news for steep increase in residential prices.
DLF, the real estate market leader brings lifestyle shopping to Chennai with its new retail project Galleria.
India’s housing shortfall is estimated to be around 27 million and Chennai city alone faces a deficit of 60,000 housing units.