Chennai Has Highest Unsold Houses : Jones Lang Lasalle (JLL) Report
Chennai has 20% completed unsold inventory in real estate, the highest percentage in the country, according to a recent survey by real estate services firm, Jones Lang Lasalle (JLL). As per a JLL survey, as many as 42,500 unsold houses, of which nearly 8,500 are in ready-to-move-in condition.
The southern suburbs of Chennai including Old Mahabalipuram Road and East Coast Road have approximately 30,000 unsold houses, which account for 75% of the total unsold inventory, while western suburbs, including NH 4 and GST road, recorded the second largest volume of 8,000 unsold houses. Both these locations are driven by end-user demand, which has been slow in uptake last year.
Chennai has seen a strong trend in the uptake of commercial office space in the last few quarters. If the trend continues to remain strong, it is expect to see a simultaneous uptake in residential sector, albeit, the trend usually takes a few quarters to follow, said CEO & Country Head, JLL India.
Chennai residential market has tried to maintain its balance by limiting the unit launches in the last few quarters. Capital values have remained stable, indicating it to be a buyers’ market. The prolonged period of low activity in this asset class is, however, impacting the market, which is not witnessing investments to its true potential.
President, CREDAI Chennai, said the unsold inventory would soon find takers. It is just a matter of time. Currently, the market trend is customers are looking at ready-to-move homes. They want projects which can be delivered soon and occupied immediately.
With the advent of new sectors like affordable housing and smart homes, the real estate sector is on a revival mode now. There have been a steady growth in the demand from homebuyers in the past few months and this is the right time for homebuyers to invest in homes as the prices and home loan interest rates to go up due to the constant rise in input costs and reduced new launches.
The survey showed that as many as 4,40,000 residential units remain unsold across key cities of India at the end of 2017.
Source Link- http://www.thehindu.com/.