Residential demand in Chennai increased 13.0% QoQ, while supply grew 5.1% QoQ reveals Magicbricks PropIndex Report Q2, 2022
- Average residential prices increased 1.6% QoQ
- 2 and 3 BHK configurations continue to hold a majority share in the market
Chennai, In Chennai, demand (searches) for residential real estate increased 13.0% QoQ, supply (listings) increased 5.1% QoQ and average property prices increased 1.6% QoQ, revealed Magicbricks’ PropIndex Report Q2, 2022.
In both, demand as well as supply, houses in the INR 5,000–10,000 psf segment are more preferred than the affordable segment, indicating that home buyers in Chennai prefer mid-segment and premium properties over affordable housing.
The affordable residential segment under < INR 5,000 psf has 33% of the total share in demand and 34% in supply. Homebuyers in the city seem to have a strong preference for mid-segment and premium properties over affordable housing.
Commenting on the trend, Sudhir Pai, CEO, Magicbricks shared, “Across India, the rise in residential demand is reflective of economic recovery and income stabilisation. This is also fuelled by families returning to metros as offices and educational institutions reopen. While growing inflation, disruption of the global supply chain and increase in input cost of materials & mortgage rates are pushing up the prices, overall we are seeing buyer’s confidence and expect India’s residential market to continue growing over the next few quarters as well.”
The report also identified that the average property rates witnessed a QoQ growth in western localities such as Poonamalle (7.5%), Adambakkam (7.5%), Kovilambakkam (7.5%), Saligramam (7.5%), and Thiruvanmiyur (4.8%), which are well connected with the rest of the city.
Moreover, locations like Mylapore (7.5%), Pallavaram (2.3%), Korattur (1.5%), Porur (1.4%), Padur (1.6%), and Kelambakkam (1.4%), which are densely populated, witnessed a QoQ decline in their average property rates.
