Chennai January 10, 2014: Housing sales in Chennai dropped 33 per cent to 18,200 units in 2013 due to slowdown in the realty market and high interest rates, according to a report by property consultant Knight Frank.
However, housing prices in the city increased by 5-7 per cent last year despite a decline in sales volume as developers restricted supply by offering fewer homes in the market.
Launch of new homes fell by 35 per cent to 20,100 units in 2013 compared to the previous year, when it was 30,900 units.
“The year 2013 has not been very kind to the Chennai market and like all the other major cities in the country even Chennai has suffered the onslaught of the current slowdown in the real estate sector,” said the report.
Chennai witnessed drop in sales volume to the tune of 33 per cent during 2013 making it as one of the worst performing years for the residential sector in the history of the city, it added.
It noted that since January 2013 absorption levels have been gradually declining with each passing quarter reporting a lower level than the previous quarter.
“Sales volume has dipped from 27,000 units in 2012 to 18,200 units in 2013 resulting in a fall of 33 per cent. The latest quarter, that is October-December 2013, has been one of the worst quarters in terms of sales and has recorded its lowest volume since 2008-09,” the Knight Frank report said.
Factors such as slowing economic growth, rising interest rates by banks, high inflation and the weak rupee among others have contributed towards building a negative sentiment among home buyers, it said.
They have delayed their purchasing decision and are waiting for some sort of positive signal on these fronts.
“Poor sentiment among home buyers has resulted in a decelerating trend in terms of sales over last four quarters.
However, developers in Chennai have been smart enough to take cognizance of such a trend and have cautiously reduced the number of new launches in the preceding 12 months,” it said.Business Line
Bhubaneswar-based Motwani Constructions celebrates 25 years of loyalty with a life-changing gesture, turning an employee's…
11-November-2026 On 10 November, Reuters reported that Adani Group executives outlined plans for roughly $120…
Bid value of ~INR 272 crore, with 40% payable within 60 days of allotment and…
10-November-2026 On 3 November, Crisil Ratings projected that India’s installed data centre capacity could rise…
09-November-2026 On 2 November, SEBI issued frameworks for depositary receipts backed by units of real…
07-November-2026 A Colliers assessment reported on 5 November projects that green-certified buildings could attract 80–85%…