The Chennai real estate market has shown a notable performance in the first quarter of 2024. Data reveals that 78 projects were registered with TNRERA in Chennai, with 59% of these projects by members of the Confederation of Real Estate Developers' Associations of India (CREDAI) Chennai. This indicates a 28% increase in total project registrations compared to the fourth quarter of 2023, signalling a positive trend in new project launches.
The registration of residential units saw a substantial rise, with 7,218 units registered in Q1-2024 compared to the previous quarter. The total units registered increased by 40% with the South Suburbs accounting for 29% of the projects followed by Central Chennai at 26%.
“Despite a 17% decline in the number of projects registered in Q1-2024 compared to Q1-2023 data, the number of units registered increased by 25% over the same period. From the units sold perspective, Q1-2024 was less encouraging, with 2,983 units sold in Chennai with CREDAI members accounting for 89%. This drop of 44% from the 5,332 units sold in Q4-2023 is due to frequent changes in registration charges and a lack of clear directives regarding under-construction projects. This had affected the potential buyers to a large extent,” said Mohamed Ali, President, CREDAI Chennai.
Even the unsold stock leaves a grim picture for the developers in Chennai. As of March 2024, Chennai had 7,717 unsold units in completed residential projects. This high level of unsold inventory indicates that while new developments are in progress, the market’s ability to absorb these units remains challenged.
Mohamed Ali, President, CREDAI Chennai, emphasized the importance of collaboration with the State Government to address current challenges: “Our sales have been impacted by uncertainties around under-construction projects. However, we are committed to working closely with the State Government to resolve these issues. The market’s ability to adapt and evolve is promising, and we are looking forward to positive developments in the near future.”
