In Q1 2024, Chennai's real estate market experienced a mixed performance, according to Tamil Nadu Real Estate Regulatory Authority (TNrera) data. New project registrations rose by 28%, totaling 78 projects, with 59% launched by CREDAI Chennai members. South Chennai was the most favored location, hosting 29% of the new projects. However, sales figures fell sharply by 44%, with only 2,983 units sold, and a significant unsold inventory of over 7,700 units remains. CREDAI Chennai President Mohamed Ali highlighted the impact of regulatory uncertainties but expressed optimism about future collaboration with the State Government to resolve these issues.
The Chennai real estate market witnessed a mixed performance in the first quarter (Q1) of 2024, according to data from the Tamil Nadu Real Estate Regulatory Authority (TNRERA). While new project launches showed positive signs, sales figures remained sluggish.
There's a reason to be optimistic about future supply in Chennai's real estate market. Q1 2024 saw a significant increase in new project registrations compared to the previous quarter. A total of 78 projects were registered, reflecting a 28% jump. Notably, 59% of these projects were launched by members of CREDAI Chennai, a leading industry body.
The good news extends to the type of properties being developed. There was a substantial rise in registrations for residential units, with 7,218 units compared to Q4 2023. South Chennai emerged as the most preferred location, with 29% of the projects planned for this area, followed by Central Chennai at 26%.
While new launches are encouraging, actual sales paint a different picture. The number of units sold in Q1 2024 dropped significantly by 44% compared to the previous quarter. Only 2,983 units were sold, with CREDAI members accounting for 89% of these sales.
Industry experts attribute the decline in sales to frequent changes in registration charges and a lack of clear guidelines for under-construction projects. This uncertainty has made potential buyers cautious. Further adding to the challenge, Chennai has a high level of unsold inventory, with over 7,700 units in completed projects as of March 2024.
CREDAI Chennai acknowledges the challenges but remains hopeful. Mohamed Ali, President of CREDAI Chennai, stated that their sales have been impacted by uncertainties but emphasized their commitment to working with the State Government to resolve these issues. The industry's ability to adapt and evolve is promising, and stakeholders are looking forward to positive developments in the near future.
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