Chennai, 19 August, 2016 – Chennai, often considered to be the Gateway to
southern India was one of the early movers to realize the potential of the
technology and manufacturing sector in India, attracting talent from different
parts of the nation. This coupled with governmental reforms surged the
residential space in this market. According to recently released report by CBRE- Resurrecting Chennai – Insights into City’s Housing Dynamics, the city sold over 45 million sq. ft. of
housing space in the last two years.
states that Chennai has emerged as the preferred location for prospective
buyers in south India. A significant number of infrastructure initiatives have also
been undertaken by the State Government to reduce infrastructure inadequacies
attributed to the city’s increasing population density; resulting in an
increase in the apartment units from 17,000 in 2005 to about 170,000 units in
2015. Going forward, Chennai is expected to shape and structure the growth in
real estate for the region.
Commenting on the findings of the report, Mr. AS
Sivaramkrishnan, Head of Residential Services, CBRE
India said, “Chennai’s residential real
estate market has witnessed exponential growth over the past decade. Unlike the
other southern counterparts like Bangalore and Hyderabad; Chennai’s residential
activity is not just driven by IT, but is equally supported by manufacturing
and trading as well, resulting in comparatively stable residential market. This
dynamic market has registered strong growth numbers and will play a crucial
role in shaping and structuring the real estate sector for south India.”
Various factors such as the Government’s flagship programmes, easy
availability of large land parcels at competitive rates and relaxation of the
Floor Space Index (FSI) resulted into formidable growth. The total available
commercial office space in Chennai grew at a Compounded Annual Growth Rate
(CAGR) of approximately 19%, to reach more than 58 million sq. ft. in 2016.
The report captures market dynamics of the Chennai
real estate market and analyzes the recent trends seen across micro-markets in
the city. It further adds that the residential segment in Chennai has been
concentrated around Central Chennai with Nungambakkam, Alwarpet, Mylapore, etc.
However, with increasing growth prospects of the city, these independent houses
began to re-develop as apartments to accommodate a larger populace.
Construction of Greenfield airports and aerospace
parks, monorails and elevated expressways are some of the many initiatives
which the State Government has undertaken to address infrastructural
inadequacies. The city’s residential landscape and its growth prospects by
virtue of being well connected enable the micro-markets to enjoy excellent
connectivity to all the major parts of the city.
Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.