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INSITE REPORT 2018 April - June

99acres India’s No.1 Property Portal 99acres India’s No.1 Property Portal INSITE : CHENNAI 3

CBO’s Desk

The positive impact of groundbreaking policy reforms - Real Estate (Regulation and Development) Act and Goods and Services Tax (GST) – is seeming to bear some fruit in FY 2018- Contents 2019. Marked by a gradual reduction in unsold inventory, a rise in enquiries in affordable housing segment and the return of new launches, the beginning of the fiscal year is hinting From CBO’s Desk Maneesh Upadhyaya Chief Business Officer towards a slow but steady revival. 03 CBO’s perspective on current market 99acres.com The quarter recorded a quantum jump of almost 50 per cent in new residential launches to reach 50,100 units. Affordable National Outlook housing led the supply graph, up by about 100 per cent, QoQ, in 04 Snapshot of real estate ambience Pune, Hyderabad, Delhi NCR, Chennai, Mumbai Metropolitan across top 8 metro cities Region, Bangalore and Kolkata. Inventory levels, on the other hand, dropped by 10-30 per cent, YoY, across metros. RERA- Market Indicators approved projects commanded a significant share of the 05 Changes in capital rates and inventory residential demand, evident from a healthy upswing status QoQ; and rental values YoY in the timeshare on RERA-registered projects on 99acres.com. Realty stakeholders are gung-ho Market Movers about the upcoming festive quarter, which News that impacted Chennai’s might see a resurgence in end-user 06 realty market in Apr-Jun 2018 demand and sales volume. 99acres Outlook Methodology 07 99acres’ perspective on current market The Insite Report by 99acres.com captures the quarterly capital trends and the annual Chennai rental analysis of residential apartments 08 Key highlights - Chennai’s capital and in key real estate markets – Delhi NCR, Mumbai rental market in Apr-Jun 2018 Metropolitan Region (MMR), Bangalore, Pune, Chennai, Hyderabad, Kolkata and Annexures Ahmedabad. In order to assess the prevailing sentiment, the report delves deep into demand 10 and supply of properties across varied budget segments and occupancy stages. While demand is a function of queries received, supply is based on property listings posted on 99acres.com in Apr-Jun 2018. 99acres India’s No.1 Property Portal INSITE : CHENNAI 5 MARKET INDICATORS

Capital Values Rental Values Supply Bangalore ˄ ˄ ˅ Delhi NCR ˄ Mumbai ˄ ˄ ˅ Chennai ˄ ˅ Pune ˄ ˅ Hyderabad ˄ ˄ ˅ Kolkata ˄ Ahmedabad ˄ ˄ ˄ * Capital values represent quarterly change * Rental values represent yearly change * Supply is basis properties listed on 99acres.com NATIONAL OUTLOOK HOME BUYING SENTIMENT IN FOCUS The realty landscape witnessed a fleeting calm even as enquiries and sales recorded a slight uptick in most metro cities this quarter. While the RERA ANNIVERSARY non-formation of a RERA-body marred buyer sentiment in Kolkata and Hyderabad, the approaching ‘Aadi’ period slackened growth in Bangalore and May 1, 2018 marked the first anniversary of the Real Estate (Regulation and Development) Act, 2016 Chennai. A revival in property sales is expected in the festive quarter. [RERA]. The implementation progress varied from State to State depending on timely compliance with Central RERA rules. Kerala, West Bengal and the six north-eastern States are yet to implement the Act. PROPERTY PRICES Others including Karnataka, the NCT of Delhi and Tamil Nadu made snail-paced progress, tarnishing consumer sentiment. Price movement remained marginal across cities, except Hyderabad, which saw notable growth due to infrastructural overhaul and robust office-space absorption. The premium segment remained passive as affordable housing GENERAL BUYING SENTIMENT grabbed a majority share of buyer demand. Any significant deviation in Buyer confidence ameliorated for RERA-approved projects. A resurgence of fence-sitters in select pockets, average weighted capital ‘asks’ is likely to happen around Oct-Dec 2018. driven by connectivity and job opportunities, was a testimony to the reviving market. Conversion rate improved, albeit minimal. The affordable housing sector garnered maximum buyer interest, however, RENTAL LANDSCAPE RERA registration alone did not suffice to drive buyers towards under-construction properties. The rental landscape continued to remain upbeat for the seventh consecutive quarter. Rental values witnessed a notable hike across cities, PROPERTY PRICES except Delhi NCR and Pune where a pile-up of ready inventory inflicted the Enquiries resurfaced and led several housing pockets register an uptick in property prices. While market. The growth is likely to continue for a few more quarters, until home Hyderabad reported a notable rise in residential property rates, Pune and Chennai maintained status quo. buying picks up pace and sees a complete revival. Delhi NCR and Mumbai reported a price correction in the last one year due to discounts offered by developers to lure buyers back into the market. SUPPLY The hiatus in new launches amidst piling residential stock helped cities such as NEW LAUNCHES Bangalore, Mumbai, Pune, Chennai and Hyderabad rationalise inventory levels. New launches nose-dived across cities due to increased compliance under RERA. Chennai, Hyderabad and Slow-paced registrations under RERA played a key role in curtailing the saleable Kolkata reported a 50-70 percent dip in launches, YoY, largely owing to delayed notification of RERA rules. primary stock. The trend is expected to continue as no exceptional measures Delhi NCR, Mumbai, Bangalore and Pune, too, witnessed new launches coming to halt. A year later, the are being observed to fast-track RERA registrations. markets seem to have gained ground with new launches reporting an improvement, QoQ. 99acres India’s No.1 Property Portal INSITE : CHENNAI 7

99ACRES OUTLOOK Market Movers Chennai’s residential property industry was in tatters in 2017 after the investors abandoned the market post a series of events impacting the political, geographical TNRERA takes steps to upsurge Metro connectivity expands up till and regulatory framework of the city. Several quarters later, despite a spate of policy reforms and structural changes, residential sales and new project launches remain transparency Central Railway meek. Unsold inventory stood at 42,500 units at the beginning of Apr-Jun 2018, with The Tamil Nadu RERA (TNRERA) mandated After a delay of two years, two metro lines ready-to-move-in properties occupying a 20 percent share. developers with projects outside the ambit – Central to and AG-DMS of RERA to mention the same in their to Little Mount via – opened for Property prices, however, have managed to maintain status quo, QoQ, beckoning the advertisements. The measure was taken to public in May 2018, significantly reducing resiliency prevalent in the market. The rental graph, on the other hand, reported a hike improve transparency in the functioning of the travel time to the Central railway station. of four percent, YoY. the real estate sector since several developers Airport connectivity, too, bolstered with the were found advertising projects without RERA commencement of these metro routes. The expansion of the metro corridor towards the central parts of the city improved the registration number and website address. livability quotient and rendered positivity to the otherwise grim consumer sentiment. Railway line in North Chennai nears However, any significant impact of this development on property sales and enquiries Sand paucity woes disrupt construction completion is yet to be seen. The lull in the market is expected to spill over to the upcoming activities The fourth railway line between months of July and August, the inauspicious monsoon period called ‘Aadi’. Experts The State government has been mulling and Thiruvottriyur is nearing completion foresee an improvement in Chennai’s residential market only after August, especially import of river sand to meet the requirements and is anticipated to reduce the travel time when the festive season rains discounts and freebies. of the construction industry. However, after of express and suburban trains between rejecting sand from Assam, the State finalised Chennai and Gummidipundi. This The booming logistics sector and the massive fund flow in the IT sector hold the an overseas contractor to import five lakh tons 5 km-long stretch is a part of the baton to a revival in Chennai’s residential market in the ensuing quarters. The sand of river sand every month. The added cost 4th lane between Chennai Beach crisis may, however, pose a hurdle to the growth of the sector. is anticipated to shoot property prices up in and , one of the the State. busiest routes of the Southern Railways. State puts Tenancy Act on hold Awaiting the Centre’s modified Act, Tamil Nadu Price Movement in Key Micro-markets government has put its ambitious Tenancy Act on hold. The implementation of this Act was LOCALITY AVERAGE ‘ASK’ RATE (PER SQ FT) QOQ CHANGE YOY CHANGE anticipated to bring a paradigm change in the 3,900 - 4,800 2% 2% rental market by counter-balancing the rights of landlords and tenants. 4,800 - 6,100 3% 4% 4,400 - 6100 -1% 0% 3,200 - 3,900 -2% 5% 3,700 - 4,900 0% 7% 4,200 - 5,100 0% -4% 8,300 - 10,800 -2% 4% 4,900 - 7,300 2% 4% 3,700 - 4,200 2% 5% T Nagar 9,000 - 11,000 -4% 0%

* Average ‘ask’ rates have been calculated as per listings posted on 99acres.com in the current quarter 99acres India’s No.1 Property Portal INSITE : CHENNAI 9

CHENNAI Infrastructure overhaul seems to KEY HIGHLIGHTS SUPPLY OF APARTMENTS be the only growth catalyst in the The look-out for affordable homes continued to drive buyers city marred by slow-paced registrations The average weighted property prices across Chennai witnessed UC RTM DEMAND UC RTM SUPPLY under Tamil Nadu RERA (TNRERA), zonal variations, with the city average remaining unchanged this towards the South along the Grand Southern Trunk (GST) Road and ambiguities pertaining to GST, coupled quarter. While the IT-dominant micro-markets in the South garnered Chennai-Trichy Highway. Localities along the former stretch such as with other political rifts and sand crisis. healthy response from buyers, the sellers in the northern landscapes and , with average capital prices ranging between Apr-Jun 2018 was the seventh despaired for enquiries. Locales such as , Velachery Rs 3,500 and Rs 4,200 per sq ft, witnessed marginal positive price movement consecutive quarter when Chennai’s and Thoraipakkam in the South posted a quarterly price hike of in the quarter ending April 2018. real estate sector displayed stagnancy two-four percent, each, owing to healthy demand from the corporate and along the Chennai-Trichy Highway found 82% / 18% in average capital values. Stakeholders buyer base. ground amongst potential buyers looking for homes priced around 81% / 19% expect a revival in end-user demand 89% / 11%

In addition to the southern IT region, the fast-establishing IT/ITeS hub Rs 4,500-4,700 per sq ft. The future of housing pockets offering affordable 88% / 12% and sales volume in the festive quarter of Porur in the West, too, attracted potential buyers. As a result, the inventory priced up to Rs 25 lakh seems promising since the supply of such of Oct-Dec 2018. popular locales in its vicinity such as , properties in the city falls short of demand by a significant margin. and Poonamallee saw prices appreciating to the tune of two to three Amidst the prolonged lull in the capital landscape, the rental market percent, each, QoQ. benefitted. Rental values across the city witnessed an upsurge New launches remained at bay across zones and budget segments. of four percent between Apr-Jun 2018 and the same quarter previous year. 38% 50% 37% 47% Initiatives towards boosting the development of homes under Areas connected by the metro and those close to the IT hubs garnered Pradhan Mantri Awas Yojana (PMAY) failed to encourage developers maximum interest from the tenant community. The emergence of the Apr-Jun 2018 Jan-Mar 2018

to venture into new business, resulting in unchanged demand-supply IT-driven southern regions such as Velachery, , * Graph depicts the availability of residential apartments dynamics in the affordable housing segment. and on the top of the rental charts this quarter does wrt other property types, QoQ, along with the distribution of under-construction and ready stock not come as a surprise.

9% 9%

DEMAND SUPPLY 7% BUDGET-WISE SUPPLY OF PROPERTIES

5% 4% 4% 4% 4% 32% 31% 3% 3% 31% 3% 2% 26% 26% 25% 1% 2% 0% 2% 19% 20% 19% 19% 19% 20% 17% 18% -2% 0% 17% -1% -1% 19% 19% 18% 16% 17% 22% 23% 25% 7% 17% 7% 6% 22% 23% 22%

Apr-Jun Jan-Mar Apr-Jun Apr-Jun Jan-Mar Apr-Jun Apr-Jun Jan-Mar Apr-Jun Apr-Jun Jan-Mar Apr-Jun Apr-Jun Jan-Mar Apr-Jun 2018 2018 2017 2018 2018 2017 2018 2018 2017 2018 2018 2017 2018 2018 2017 Within Rs 25 Lakh Rs 25-40 Lakh Rs 40-60 Lakh Rs 60 Lakh to 1 Crore Rs 1 Crore and Above

Capital Rental Velachery Porur Adyar Chromepet Thoraipakkam Medavakkam Sholinganallur

* %change represents quarterly capital movement and yearly rental movement * Graph depicts the fluctuation in supply wrt demand for residential properties in various budget categories 99acres India’s No.1 Property Portal INSITE : CHENNAI 11 99acres Annexures India’s No.1 Property Portal FIND BEST OPTIONS TO CAPITAL VALUES RENTAL VALUES IND BEST OPTIONS TO

Locality Apr-Jun 2018 Locality Apr-Jun 2018 Locality Apr-Jun 2018 BUY SELL RENT PROPERTYbuy, sell, rent property

Adyar 13400 Pallikaranai 5100 12 Ambattur 4900 Perambur 6050 11 Anakaputhur 3650 Perumbakkam 4350 23 Anna Nagar 10750 Perungudi 6683 21 Avadi 3833 Poonamallee 4100 Kolathur 13 Besant Nagar 13925 Porur 6100 17 5167 RA Puram 16425 Madipakkam 13 Price trends and 7400 8400 Medavakkam 13 Mobile App property advice Chromepet 4850 4633 13 on Android platform 14750 Sholinganallur 5275 28 and iOS Gerugambakkam 4250 4050 15 8000 T Nagar 10800 22 Genuine Iyyappanthangal 4450 Tambaram 4575 11 Over 8.2 lakh listings with 4683 Thiruvanmiyur 10650 Padur 13 property photographs Keelkattalai 5225 Thoraipakkam 6475 14 listings Kelambakkam 3750 Urapakkam 3750 Pallikaranai 14 Kilpauk 11150 9050 Perambur 14 Kodambakkam 8233 7000 Perumbakkam 12 Kolathur 5300 Velachery 7275 Perungudi 19 5917 Vengaivasal 4150 Porur 14 More than Kovilambakkam 5267 Virugambakkam 8000 RA Puram 29 1.5 lakh 5150 Saidapet 20 projects Madipakkam 4975 Saligramam 19 RENTAL VALUES Maduravoyal 5050 Selaiyur 12 5550 Adyar 26 Sholinganallur 18 Medavakkam 4725 29 Siruseri 13 West 6000 Ambattur 13 T Nagar 23 Mugalivakkam 5233 20 Tambaram 11 Mylapore 15500 Ashok Nagar 21 Thiruvanmiyur 20 Nanmangalam 4350 Avadi 10 Thoraipakkam 18 CONTACT US 4450 Besant Nagar 26 Urapakkam 10 0120 4879400 Nungambakkam 18625 Choolaimedu 19 Vadapalani 19 Monday - Friday Oragadam 3700 Chromepet 13 10 9:30 AM to 6:30 PM IST Padur 4250 Egmore 28 Velachery 18 Email: [email protected] Pallavaram 5400 Kattupakkam 12 Virugambakkam 18

*All prices are per sq ft rates *Capital change depicts quarterly alterations in average ‘asks’ *Rental change depicts yearly alterations in average ‘asks’ CONTACT US 0120 4879400 Monday - Friday 930 AM to 630 PM IST Email content99acres.com