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The Research and Analysis Wing (RAW) of CREDAI Chennai has released its latest report, revealing a mixed performance in the Chennai real estate market for the second quarter of 2024, covering the period from April to June. The report provides key insights into the market dynamics, project registrations, and sales, indicating both areas of growth and concern.
According to the RAW report, Chennai saw the registration of 65 new projects during Q2-2024. Of these, CREDAI members were responsible for 65%, demonstrating their strong presence in the market. However, this figure represents a 34% decline from the 98 projects registered in the same period last year, signalling a slowdown in new project launches.
In contrast, the number of residential units registered in the city showed a robust increase. Q2-2024 witnessed the registration of 8,793 residential units, marking a 37% rise compared to the 6,435 units registered in Q2-2023. CREDAI members continued to dominate this segment, accounting for 90% of the registered units, underscoring their significant influence in Chennai’s real estate sector.
The geographical distribution of project registrations highlighted Central Chennai as the leader, with 29% of the total projects registered. The South Suburbs followed closely with 28%, while also leading in unit registrations, capturing 45% of the total units registered during the quarter. This trend points to the South Suburbs’ growing appeal among both developers and homebuyers. The West Suburbs accounted for 19% of the unit registrations.
However, the report also brought to light some challenges in the market. As of June 2024, the inventory of unsold residential units in completed projects stood at 7,989 units, indicating a slower absorption rate. Sales figures in Q2-2024 were less encouraging, with only 2,597 units sold, a significant 53% decline from the 5,498 units sold in Q2-2023. This decline in sales reflects the difficulties in reducing existing inventory, posing a challenge for developers contemplating new project launches.
Mohamed Ali, president of CREDAI Chennai, expressed concerns over the steady decrease in the total number of building and layout projects registered over the last three months. “The Q2-2024 analysis reflects a pivotal moment for Chennai’s real estate market. While we are encouraged by the rise in residential unit registrations, the decline in project launches and sales highlights the need for focused efforts to overcome existing challenges. By addressing regulatory bottlenecks and fostering strategic collaborations between the government and industry, we can unlock Chennai’s true potential as a leading real estate destination” said Ali.
Aslam Mohamed, secretary of CREDAI Chennai, emphasized, “While developers are progressing with larger projects, the growing unsold inventory indicates a misalignment with market demand. It’s essential that we tailor new developments to better meet the evolving needs of buyers”.
