| Undergoing the period of correction for the past | | | | oversupply and there is no junction between the |
| 6-months, Chennai real estate markets have finally | | | | volume of demand and supply," he adds. |
| started to stabilize, however the demand curve is still | | | | Meanwhile, the prices of residential units in the |
| observed moving horizontally. As per industry reports, | | | | sub-urban areas have moderated at the levels of Rs |
| the city absorbed meager 13 per cent of the total | | | | 2,500-4,000 per sq. ft, after peaking at Rs 5,000-Rs |
| supply of the residential space in the past quarter. | | | | 6,000. The basic notion behind development of |
| Chennai real estate received fresh additions of 3.4 | | | | sub-urbs is generally low price range and if this factor |
| million sq. ft of housing in the past quarter although a | | | | escalates, there is no point people will consider buying |
| meager 0.47 million sq. ft of space was absorbed, | | | | properties in sub-urbs, Professor Raghu Aiyar |
| studies point out. | | | | commented. |
| Now that the prime banks like SBI, HDFC and ICICI | | | | Also, the investors who were expecting instant returns |
| have cut the interest rates on home loans, the | | | | of 25-30 per cent on their property investment in |
| markets are likely to catch up and real estate | | | | Chennai are at tenterhooks, as the markets have |
| developers expect good time ahead this winter | | | | been gradually shedding off all the speculative |
| season. | | | | tendencies. |
| Impact on prices | | | | Outlook |
| According to the Chennai based professionals, capital | | | | It's consumer's market. Chennai Real Estate will add as |
| values in the residential real estate in Chennai had | | | | many as 25,000 apartments in the next 12-24 months, |
| reached staggering levels that in fact were termed as | | | | from more than a dozen of townships alone and |
| unrealistic by buyers. | | | | construction of standalone apartment buildings will |
| But now prices are almost down by 20 per cent, says | | | | further accumulate over the total additions. |
| R Ajay of Tirupati Real Estates. "But you cannot | | | | In this scenario, the supply side would outstrip demand |
| actually gauge that whether price corrections are | | | | curve and of course, property sellers and developers |
| spiking demand or not. Most of the new projects in the | | | | have to downscale their margin expectations, say |
| property markets of Chennai are actually making an | | | | market analysts. |