Chennai’s real estate landscape for the second quarter of 2024 presents a complex picture, according to the latest Research and Analysis Wing (RAW) report from CREDAI Chennai. The report, covering the period from April to June 2024, highlights both positive and concerning trends within the city’s property market. A total of 65 new projects were registered during this quarter, with CREDAI members contributing to 65% of these projects. However, this represents a notable 34% decrease from the 98 projects registered in the same quarter of the previous year, indicating a slowdown in new developments.
On a more positive note, the number of residential units registered saw a substantial increase. The quarter witnessed the registration of 8,793 residential units, marking a significant 37% rise compared to 6,435 units in Q2-2023. CREDAI members were responsible for 90% of these registrations, reflecting their dominant role in the market. The South Suburbs emerged as a key player, leading both in the number of projects and unit registrations, capturing 45% of the total units. Central Chennai also played a significant role, with 29% of the total project registrations.
Despite these positive indicators, the market faces several challenges. As of June 2024, the inventory of unsold residential units in completed projects stood at 7,989, highlighting a slower absorption rate. Sales figures were particularly concerning, with only 2,597 units sold during Q2-2024—down 53% from the 5,498 units sold in the same quarter last year. This sharp decline underscores the difficulties in clearing existing inventory and presents a challenge for future project launches. CREDAI Chennai’s President expressed concerns about the consistent decrease in new building and layout project registrations, emphasising the need for strategic improvements to overcome market challenges. Meanwhile, the Secretary highlighted the disconnect between large-scale developments and market demand, stressing the importance of aligning new projects with evolving buyer needs.
