Suburban South Leads Residential Launches
The Chennai residential market recorded robust activity in Q4 2024, with over 4,050 units launched, reflecting a year-on-year growth of 38%. Suburban South I and II dominated, contributing 62% of the quarterly launches, with key precincts like Kelambakkam, Porur, Perambur, Semmencherry, and Mangadu driving supply. Prominent regional developers, including Provident Housing, NuTech Projects, and Jain Housing, played pivotal roles in these launches.
For the year, Chennai saw over 20,600 unit launches, a 10% decline from 2023. However, suburban and peripheral areas along upcoming metro corridors accounted for a significant portion of the annual supply, showcasing the city’s evolving infrastructure-driven development.
Mid-Segment Dominates, Luxury Segment Expands
The mid-segment remained the largest contributor in Q4 2024, representing 77% of total unit launches. However, the high-end and luxury segments demonstrated substantial growth, comprising 18% of the launches during the quarter. Notably, the high-end and luxury categories experienced a remarkable 35% growth in 2024 compared to the previous year. This trend underscores a shift in consumer preferences towards premium housing options, while the affordable segment saw a decline in launches both quarterly and annually.
Appreciation in Capital and Rental Values
Several Chennai submarkets experienced growth in capital values, particularly in the mid-segment. Off-Central II, Suburban South I & II, and Suburban North recorded annual capital value increases of 5–9%. Meanwhile, the high-end segment in Off-Central I & II saw a 4–5% rise in capital values. Rental values for mid-segment properties in Off-Central II and Suburban South I & II also increased by 5–8% year-on-year. Strengthened infrastructure across key residential hotspots is anticipated to drive further price appreciation in the coming quarters.
Capital Values & Real Estate Activity in Q4 2024
1. Capital Values as of Q4 2024
- High-end segment:
- Capital values range from INR 7,500 to 27,000 per square foot (SF) across different submarkets.
- Quarterly (QoQ) changes range from 0% to 5%.
- Yearly (YoY) changes range from 4% to 5%.
- The highest capital value is in Central (INR 23,000-27,000 per SF).
- The highest quarterly increase is in Off Central – II (5%).
- Mid-segment:
- Capital values range from INR 5,000 to 18,000 per SF.
- Quarterly changes range from 0% to 2%.
- Yearly changes range from 0% to 9%.
- The highest YoY increase is in Suburban North (9%).
- The highest quarterly increase is in East Coast Road (2%).
2. Key Projects Launched in Q4 2024
- Three major residential projects launched:
- Provident Bayscape in Kelambakkam (676 units, 1,006-1,424 SF).
- NuTech Central Park in Porur (655 units, 1,090-2,248 SF).
- SPR City – The Capital District in Perambur (651 units, 1,075-1,583 SF).
3. Key Construction Completions in Q4 2024
- Two major projects completed:
- Silversky Lakeside 3 in Ambattur (430 units, 965-1,643 SF).
- Radiance Flourish in Thiruvottiyur (395 units, 1,030-1,630 SF).
Overall Insights:
- The high-end segment saw stable growth, with Off Central – II showing the highest increase.
- The mid-segment recorded the highest YoY growth in Suburban North (9%).
- New projects were launched in suburban areas like Kelambakkam, Porur, and Perambur, indicating strong demand.
- Completed projects in Ambattur and Thiruvottiyur suggest ongoing urban expansion.
Rental Values as of Q4 2024
1. High-End Segment
- Rental values range from INR 56,000 to 2,48,000 per month across different submarkets.
- No change in rental values (QoQ) for most areas, except for Off Central – II, which saw a 1% quarterly increase.
- Yearly (YoY) changes are minimal, with Off Central – II increasing by 3%.
- Central has the highest rental values (INR 1,00,000 – 2,50,000 per month).
- East Coast Road has a wide rental range, going up to INR 2,48,000 per month.
2. Mid-Segment
- Rental values range from INR 18,000 to 80,000 per month.
- Some areas saw rental increases:
- Off Central – II (1% QoQ, 5% YoY).
- Suburban South – I (2% QoQ, 6% YoY).
- Suburban South – II (2% QoQ, 8% YoY) – highest yearly increase.
- Central and Off Central – I remained stable (0% QoQ, 0-3% YoY).
Overall Insights
- High-end rental prices are stable, with minimal fluctuations.
- Mid-segment rentals are experiencing modest growth, especially in Suburban South – II (8% YoY growth).
- Rental demand appears higher in suburban areas, indicating potential expansion in residential leasing.
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