The year 2014 has been a worst year for real estate market for almost most of the cities in India. Chennai is of no difference which registers around 15% sales drop in properties but new launches has touched a percent of about 30. To mention in numbers, the city has absorbed 20,960 units in sales while the total number of launches was around 24,444 units in 2013. Whereas in the year 2014, new launches dipped from 24,000 in 2013 to 18,000 units, said clearly in the survey. Already from the beginning of 2014, the real estate market has been facing dull scenario, adding to this came the Moulivakkam building collapse, which totally drenched the image over the property market. This resulted in the overall market dip over multistory apartments.
One thing has been kept in mind always that all fingers in our hand are not similar. Similarly, all builders are not the same. We can spot Amarprakash developers as a live example for quality construction of multi-storey apartments, they have lots of happy customer with good Amar prakash chennai reviews. Along with saying this, the real estate experts also added that the moulivakkam incident resulted in the fall of new launches to 25% across the metro. While, at the same time, the sales rate of leading builders’s projects are in the same level without any change in sales percentage. While the residential market slowly recovering with 5% hike in cost, Amarprakash projects registered around 25% hike in price and continuing its sales during the second half of last year.
As of the survey taken for December month, 2014, the unsold residential units have crossed 47,550 units and around 21 months is expected for recovery and clearing backlog. Among the micro sector, south and west Chennai has notched up in the top spot as the best performing locations with affordable cost and also offering residents with good employment opportunities. Importantly, Chrompet, a southern area in Chennai has noted with the highest price rise of about 30% within the duration of last 12 months. The metro train network is the main reason behind the spurt in cost and strongly acts as a powerful driving force.
In the overall share, Central and northern city has made an important jump in project launches whereas west city remained steady. As of the experts, it is estimated that 20% dip in new project launches can be noticed during the first half of the year. Sales also remained steady during middle quarter of this year with around 11,000 housing units recording a growth of 15% on year-on-year basis. Capital values are also expected to increase by 35% during the same period. Overall, the economic indicator are looking positive but not in all areas because at present, its impact has been seen only in some areas whereas other locations will take some more time to notice change in the market.
2014 has also been remembered for slow development in terms of business sentiments, and 2015 is expected to be a year of recovery thus leading to market stabilization both with regards to stability and demand.