QuikrHomes December Chennai Realty Cityscape.

Transcription

1 QuikrHomes December Chennai Realty Cityscape

2 Executive Summary Chennai, generally known as the Gateway to southern India, is well known for its temples, port centric business, engineering, manufacturing and IT/ITES sector. Chennai is experiencing a high growth rate (as per the study conducted by National Housing Bank) post global financial crisis. This cosmopolitan city ranks 6th in housing the country s ultra-rich population. In Chennai, residential housing prices rose over 11 per cent during the Q quarter, as compared to the same quarter a year earlier. While other major cities were struggling with the global financial crisis and took long time to overcome the after effect, the Chennai residential market has witnessed speedy recovery. Chennai floods in 2015 have left a grave impact on the real estate market, the market sentiments headed towards south with marginal increase in capital price and stagnation in new launch supply. The realty sector faced a whopping loss of Rs.30,000 crore approximately. Improved social and physical infrastructure development and easy accessibility and connectivity via railroad network is the backbone of the Chennai residential market and has significantly boosted real estate development in and around the region. Further development of Ponneri Smart city in North Chennai and development of Chennai -Bangalore Industrial Corridor (CBIC) will surely impact the residential market of Chennai and boost commercial activity between Bangalore and Chennai. Additionally, CBIC will provide world class connectivity to a port (Chennai) in the Bay of Bengal. The Chennai residential market has noted a decrease of new launch supply in 2016 compared to its previous year, an approximate 57 percent downfall has been witnessed. Post flood the market sentiments remained weak and a marginal number of launches in South and West Chennai have been witnessed. However, there was an improvement in housing sales observed during South & West Chennai remained the cynosure of real estate development in the city. The commercial corridor along with the Old Mahabalipuram Road and global manufacturing companies along Sriperumbudur has impacted the real estate scenario in the region with the rise in demand of more housing units. An approximate 12,620 dwelling units has been infused in the residential micro markets of these zones in Which is 97 percent of overall new launch supply in the year The Old Mahabalipuram Road (OMR) stretch has witnessed some positive traction during 2016, a mix of affordable and mid segment projects by reputed builders have been launched in this belt. Kelambakkam, Sholinganallur and Maraimalai Nagar are some of the active micro markets of OMR road and have contributed significantly to dwelling supply.

3 1. INTRODUCTION/CITY OVERVIEW

4 Overview: Chennai City Chennai, popularly known as Madras until 1996, is not just the capital of Tamil Nadu but also the fourth largest metropolitan city in the country. Situated on the Coromandel Coast of the Bay of Bengal, this city is termed to be the Gateway of the South. Having undergone a series of historical metamorphosis since 1 th Century, Chennai has emerged as one of the cosmopolitan cities in India. Chennai Metropolitan Area (CMA) has been constituted in the recent years, by the agglomeration of the metropolitan city of Chennai and its suburbs making it one of the important center in terms of culture, trade, commerce and education and fourth-most populous urban agglomeration in India. With Chennai selected among the 20 Indian cities to be transformed into a Smart City, under the Smart Cities Mission launched by the Government of India, there will be huge development in the near future. Quick Facts Chennai City Area: 426 Sq.km Population: 4.6 million Chennai Metropolitan Area: 1189 Sq.km Population: 8.6 million Economic Overview of the City Chennai has a well-balanced and diversified economy between manufacturing and service sectors. Chennai s economy is currently the fourth largest in India and is forecasted to grow to 100 million dollars (which is 2.5 times the current rate) by the year It is one among the top 10 fastest growing cities in the world according to Forbes Magazine. The city ranked at 4th position and boasts of hosting vast number of Fortune 500 companies of India. Industry Aerospace sector Automotive sector Banking and Finance sector Electronic/ Hardware Manufacturing sector IT sector Medical Tourism Retail and Real Estate sector Overview Chennai is proposed to have Chennai Aero Park which will be the largest integrated aerospace ecosystem in the whole world. Mahindra Aerospace has its largest R&D facility of India in Chennai With a major chunk of India s Automobile industry prevailing in and around Chennai, it is often referred to as the Detroit of South Asia attributing to the highest percentage (60%) of automotive export. The prominent automotive companies present here are BMW, Caterpillar, Hyundai, Nissan, Daimler, Apollo Tyres, Ashok Leyland, Royal Enfield and Mahindra & Mahindra Chennai plays a vital role in World banking and finance with many financial institutions having their headquarters here. World Bank, Asian Development Bank, Goldman Sachs, ABN AMRO, Citibank, Standard Chartered Bank and Deutsche Bank run their Development Centre operations from Chennai Chennai is a hub to Electronic and Hardware manufacturing plants with the major players- Dell, Samsung, Sony Ericsson, Siemens, Flextronics, Xerox, Cisco, Huawei, Nokia Corporation and Sanmina-SCI Chennai also gained popularity for being the second largest exporter of software, Information Technology (IT) and IT enabled Services (ITeS) particularly Business Process Outsourcing (BPO). According to AT Kearney's Indian City Services Attractiveness Index, Chennai is one of the most attractive cities for offshoring services. Chennai is also one of the largest healthcare provider in Asia with the presence of top medical institutions such as Apollo Hospitals, Adyar Cancer Institute, Sri Ramachandra Medical Centre, Sankara Nethralaya, MIOT Hospitals and Fortis Healthcare Chennai is experiencing a high growth rate (as per astudy conducted by National Housing Bank) post global financial crisis. This cosmopolitan city ranks 6th in housing the country s ultra-rich population Table 1.1: Economic Industry Overview

5 Price Index : Chennai vs Top Cities Figure 1.1: Price Index - Top Cities As per the National Housing Bank s Residex index, Chennai city has witnessed an upsurge in residential property prices compared to other major cities. National Housing Bank s Residex index tracks the movement in prices of residential properties on a quarterly basis and cover 26 major cities in India. In Chennai, residential housing prices rose over 11 per cent during the Q quarter, as compared to the same quarter a year earlier. Being an end-user market, the Chennai residential market recovered on the fast pace during the global financial crisis and recorded a significant upsurge in residential demand. However, post the flood Chennai s residential market has witnessed a slight decrease in new launches. Impact of Chennai floods on the property market Chennai floods in 2015 have left a grave impact on the real estate market, disturbing the city s sentiments. Prospective investors have held back on buying decisions to purchase properties in low lying areas of Chennai. The realty sector faced a whopping loss of Rs.30,000 crore approximately. Micro markets in Chennai which are adversely affected and shunned by majority of the buyers post-floods are Tambaram, Urapakkam, Mudichur, Perumbakkam, Velachery, Saidapet, Pallikaranai and Keelkattalai.

6 2. CITY ZONES OVERVIEW

7 Overview: City Zones Chennai, being a coastal city bound by Bay of Bengal on the eastern direction, the city has been constantly growing and expanding in-land. Presently, there are four broad zones in Chennai namely Central, West, North and South zones Central Zone The central zone of Chennai is the oldest, most developed and is the commercial heart of the city. Central Chennai offers excellent connectivity and there are a huge number of offices in the Central Business District (CBD). This zone of Chennai constitutes of both high-rise residential properties as well as independent units and bungalows. Prominent Localities: Egmore, T Nagar, Anna Salai, Nungambakkam, Mambalam, Triplicane, Boat Club Road and Poes Garden Illustration 1.0 : Map depicting Central Chennai Zone along with its prominent localities

8 Overview: City Zones West Zone With increasing saturation in Central Chennai, West Chennai has evolved in terms of real estate development. Presence of Multinational companies like Hyundai, Dell, Nokia, Samsung and Saint-Gobain along with the electronic hardware establishments in Sriperumbudur and Auto ancillary manufacturing units in Oragadam led to a growth in the residential market in this zone. IT and financial companies along the Chennai Bypass Road and ORR are boosting up real estate in West Chennai Prominent localities: Maduravoyal, Vanagaram, Iyyappanthangal, Avadi, Poonamallee, Sriperumbudur, Villivakkam, Porur, Koyambedu, Ambattur and Oragadam Illustration 2.0 : Map depicting West Chennai Zone along with its prominent localities

9 Overview: City Zones North Zone When compared to West and South zones of the city, Northern Chennai predominantly comprises of industrial pockets and port-related activities due to the presence of the Chennai Port and Ennore Port; thereby restricting real estate growth in this region. Other factors hampering development here are narrow arterial roads and non-availability of vacant land. Prominent localities: Red Hills, Tondiarpet, Perambur, Ayanavaram, Vyasarpadi, George Town, Madhavaram, Purasavakkam, Kolathur and Ennore Illustration 3.0 : Map depicting North Chennai Zone along with its prominent localities

10 Overview: City Zones South Zone Due to the presence of IT parks, SEZs and manufacturing units, the South Zone of Chennai has evolved as a commercial hub along the Old Mahabalipuram Road (OMR) and Grand Southern Trunk (GST) Road. These establishments in turn have given a boost to the real estate market in this region. Prominent localities: Velachery, Maraimalai Nagar, Navalur, Alandur, Old Mahabalipuram Road (OMR), Perungudi, Grand Southern Trunk (GST) Road, East Coast Road (ECR), Adyar, Medavakkam, Chromepet, Siruseri, Vandalur, Tambaram and Sholinganallur. Illustration 4.0 : Map depicting South Chennai Zone along with its prominent localities

11 3. INFRASTRUCTURE OVERVIEW

12 Infrastructure Overview Major Infrastructure Projects: Existing Name Connectivity Description Old Mahabalipuram Road (OMR) East Coast Road (ECR) Bypass Road Inner Ring Road Outer Ring Road Chennai- Bangalore Highway (NH-4) Chennai Kolkata Highway (NH-5) Anna Salai-GST Road (NH-45) Road Network From Madhya Kailash junction to Mahabalipuram From Thiruvanmiyur to Mahabalipuram From Krishna Nagar to Mettupalayam Connects OMR in Thiruvanmiyur to SH 104 near Manali From Vandalur till Nemilichery From Chennai Central Railway Station to Bangalore From Basin Bridge to Kottur From Fort St. George to Mahindra World City via airport Table 3.1: Existing Infrastructure Overview Road Network Rail Network It connects the city centre with the southern part of Chennai viz. Perungudi, Siruseri and Kelambakkam Exists parallel to OMR, it connects coastal suburbs of South Chennai It connects southern Chennai to Northern Chennai It runs close to Central Chennai through locations viz. Koyambedu, Villivakkam, Anna Nagar The six-lane highway connects GST Road with the Chennai-Bangalore Highway and NH-205 It connects western areas namely Poonamallee and Sriperumbudur with the city Centre It connects Chennai Port with the Northern parts of Chennai It provides connectivity from city Centre to southern Chennai. Name Connectivity Description MRTS Suburban Rail: West Line Suburban Rail: North Line Suburban Rail: South Line Suburban Rail: South-West Line Suburban Rail: West-North Line Suburban Rail: West-South Line Chennai Beach - Thiruvanmiyur - Velachery Chennai Central - Avadi - Tiruvallur- Arakkonam Chennai Central - Ennore - Gummidipoondi-Sullurpeta Chennai Beach- Chengalpattu- Villupuram Chennai Beach - Tambaram - Chengalpattu Chennai Central- Tiruvallur- Arakkonam- Tiruttani Chennai Beach- Royapuram- Washermanpet- Perambur- Arakkonam Table 3.2: Existing Infrastructure Overview Rail Network It connects Velachery via TIDEL Park to the central part of Chennai It connects the North-western areas of Ambattur and Avadi with central Chennai It connects northern Chennai with Central Chennai via Tondiarpet It connects southern Chennai with Central Chennai via St. Thomas Mount This line runs parallel to GST Road, connecting the Central Chennai with Mahindra World City via Tambaram It connects the central part of Chennai with the west-northern parts via Villivakkam It is the longest line running in the west-south direction from Central Chennai.

13 Illustration 5.0 : Map depicting existing infrastructure in Chennai

14 Infrastructure Overview Major Infrastructure Projects: Upcoming Name Connectivity Description Tentative commissioning Ponneri Smart City Ponneri A 21,995 acre area in Ponneri is being developed as a major industrial node and smart city over the next 20 years in three phases Yet to be announced Greenfield Airport Sriperumbudur It is the second international airport built on 4,820 acre along NH-4. It is expected to operate along with the existing airport at Meenambakkam 2017 Chennai- Bangalore Industrial Corridor (CBIC) Runs through Chennai, Sriperumbudur, Chittoor, Ponnapanthangal, Ranipet, Chittoor, Bangarupalem, Palamaner, Bangarpet, Hoskote and Bangalore The corridor (which passes through the states- Andhra Pradesh, Tamil Nadu and Karnataka) is proposed to boost commerce between South India and East Asia by enhancing the transportation of goods from industrial nodes to Chennai/Ennore ports Yet to be announced Chennai Aerospace Park Sriperumbudur The aerospace industrial park is being set up on a 250 acre campus (expandable to 700 acre). It is proposed to cater exclusively to aerospace technology and manufacturing of its components. Yet to be announced Table 3.3: Upcoming Infrastructure Overview

15 Infrastructure Overview Major Infrastructure Projects: Upcoming Road Network Name Connectivity Description Tentative commissioning Outer Ring Road Phase II Maduravoyal Expressway Nemilicherry- Nallur- Minjur Maduravoyal- Chennai Seaport It will connect NH-205 with Chennai-Kolkata highway and Tiruvottiyur Ponneri Panchetti (TPP) Road at Minjur through a six-lane highway It is a 19 km elevated expressway proposed between Maduravoyal in the west and Seaport along the Cooum River. The project is currently on halt pertaining to disagreements on alignment of the expressway Table 3.4: Upcoming Infrastructure Overview Road Network Rail Network 2017 Yet to be announced Name Connectivity Description Tentative commissioning Metro Corridor I Washermenpet - Chennai Central station - Chennai International Airport It will connect Chennai International Airport and central Chennai via Guindy 2017 Metro Corridor II Chennai Central - Anna Nagar - Vadapalani - St. Thomas Mount It will connect the city Centre and St. Thomas Mount 2017 MRTS Extension Velachery - St. Thomas Mount It will connect the metro and MRTS lines at St. Thomas Mount, connecting GST Road to Perungudi and Central Chennai 2017 Monorail Corridor I Vandalur - Kathipara It will connect Vandalur and Tambaram with central Chennai via Velachery Beyond 2020 Monorail Corridor II Poonamallee - Kathipara It will connect West Chennai via Porur Beyond 2020 Monorail Corridor III Porur - Vadapalani It will increase connectivity between Porur and Vadapalani Beyond 2020 Table 3.5: Upcoming Infrastructure Overview Rail Network

16 Illustration 6.0 : Map depicting upcoming infrastructure in Chennai

17 4. RESIDENTIAL MARKET OVERVIEW

18 Residential Market Overview Dwelling Units New Launch supply volume (dwelling units) Residential Supply (dwelling units) Residential Supply Trend (half yearly) 2012 onwards The Chennai residential market has witnessed an increase in new launches during H over H2 2015, the residential supply in the city had been deeply affected by the flood in H remained a relatively silent time frame in the Chennai residential market, as the city has witnessed decrease in new launch supply during this period, compared to previous years. 35,000 30,000 25,000 20,000 15,000 10,000 5,000 - H H H H H H H H H H Figure 4.1: Residential Property Supply Trend in Chennai Possession Trend (half yearly) 2012 onwards 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 With more residential demand in the market oriented towards ready-to-move units, there is a high developer interest in projecting much earlier completion schedules. About 95 per cent of the under construction residential supply is about to hit the market by H H H H H H H H H Figure 4.2: Residential Property Possession Trend in Chennai Residential Supply segmentation Trend (half yearly) 2014 onwards Luxury residential projects are seen to be taking a good share of the market from the second half of 2015 with growing appetite of the homebuyers for premium apartment projects. 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 - A L A L A L A L A L A L H H H H H H (till date) ** Note: A-Affordable, M-Mid, L-Luxury, UL- Ultra Luxury Figure 4.3: Residential Property Budget Breakup Trend in Chennai

19 Residential Market Overview Residential supply (dwelling units) Residential supply (dwelling units) Central Apartments North South Plots West Villas Central Apartments North Plots South Villas West Apartments Central Plots North Villas South Apartments West Plots Central Villas South Apartments West Plots Central Villas South Apartments West Plots North Villas South West Residential Supply Property Type Distribution Trend (half yearly) onwards 25,000 20,000 15,000 10,000 5,000 - H H H H H H (till date) Figure 4.4: Residential Property Typology Distribution Trend in Chennai Inline with other metro cities, though Chennai has been picking up the trend of Apartment culture, the city also continues to show a good appetite for Independent Houses and Villa units. Limited availability of land near to city Centre has inclined the developer interest towards vertical growth of the city. Zone wise Supply Trend (half yearly) onwards 25,000 20,000 15,000 10,000 5,000 - H H H H H H (till date) Figure 4.5: Zone Wise Supply Trend in Chennai It is a known trend that the residential market in the city of Chennai is driven by two major industries, the IT sector towards the South along both OMR and ECR roads and the manufacturing industry which leads the way towards East and South-east along GST and Sriperumbudur Roads. The realty market in North Chennai remained subdued, due to non availability of land parcel for residential development and congested roads in the region.

20 Residential Market Overview Key Micro Markets of the Chennai City OMR Road Kelambakkam 12,000 10,000 Medavakkam 8,000 Pallavaram Perungalathur Ambattur Poonamallee 6,000 4,000 2,000 Oragadam - Avadi Chrompet Figure 4.6: Key Micro Markets in Chennai Guduvanchery Perumbakkam Porur Sholinganallur Pallikaranai As per the discussion above, we can understand that OMR Road hosts multiple residential markets. This serves employees from nearby technology commercial establishments and has been a major go-to destination for home buying as well as rental units. Lately there has also been growing interest in the residential corridor being developed along the GST Road with prominent markets including Chrompet and Guduvanchery. OMR Road OMR or the Old Mahabalipuram Road is the top micro market for real estate developments in Chennai. The road harbours multiple micro markets such as Taramani, Perungudi, Thoraipakkam. Emergence of IT/ITeS establishments along this road has given a boost to the residential as well as commercial development. Chromepet Chromepet is the second top micro-market in Chennai. Positioned in Southern part of Chennai, Chrompet real estate is witnessing great demand from the IT professionals. This micro market is situated along the Grand Southern Trunk (GST) Road, close to Tambaram and next to Pallavaram. Having a strategic location, this suburb is easily connected to all parts of the city through road and railway networks. Guduvanchery Located in the outskirts of South Chennai on the National Highway 45, Guduvanchery is being increasingly preferred for buying residential properties by home buyers due to well-laid infrastructure, easy accessibility to railway station, airport and proximity to educational institutions namely SRM University, Mahindra World School, Vidya Mandir CBSE School, Sankara Vidyalaya etc.

21 RESIDENTIAL RECAP

22 2016 Chennai Residential Market Recap Zone Wise Distribution of New Launch Supply South Chennai 60% West Chennai 37% Central Chennai 1% North Chennai 2% South Chennai West Chennai North Chennai Central Chennai Figure 5.1: New Launch Supply Split Zone Wise Chennai has seen active residential launches towards both South and Western zones in the year 2016 even though developer interest towards South Chennai is growing significantly as compared to Western Chennai. South Chennai Key Micro Markets West Chennai Key Micro Markets Maraimalai Nagar Navallur Kelambakkam Madambakkam Singaperumal Koil Kolapakkam Others 63% 12% 6% 5% 5% 5% 4% 25% 22% Vadapalani Poonamallee Vanagaram Iyyappanthangal 5% 6% 20% Porur Avadi 7% Others 15% Figure 5.2: South Chennai Key Micro Markets Figure 5.3: West Chennai Key Micro Markets South Chennai has been a busy destination for developers resulting in more diverse residential markets offering a range of affordable and mid segment projects. Recent interest has been identified in markets such as Maraimalai Nagar,Navallur,Kelambakkam,Madambakkam, Singaperumal Koil and Kolapakkam the most amongst others. West Chennai is observed to be slowly catching-up with residential launches in the Southern markets and offers more affordable alternatives in comparison. There is huge scope of growth and is seen to be concentrated in some prominent markets such as Vadapalani, Poonamallee, Vanagaram, Avadi, Iyyapanthangal and Porur from the rest.

23 2016 Chennai Residential Market Recap Residential supply ( dwelling units) West Chennai South Chennai Segmentation of New Launch Supply ,000 3,500 3,000 2,500 Emergence of large scale residential projects by some of the prominent developers and builders in the city are the reason for domination of Affordable and Mid segment projects both towards West and South Chennai. 2,000 1,500 1, A M L A M L UL West Chennai South Chennai Figure 5.4: Segment wise break up ** Note: A-Affordable, M-Mid, L-Luxury, UL- Ultra Luxury Segmentation of New Launch Supply Breakup wrt Key Micro Markets of South & West Chennai Singaperumal Koil Madambakkam Kelambakkam 84% 100% 100% 16% South Chennai has been more in focus in terms of large scale residential projects with more traits of affordability. These seem to be majorly concentrated in markets such as Singaperumal Koil, Madambakkam along with Kelambakkam amongst others. Navallur Maraimalai Nagar Porur 4% 100% 96% 100% Western Chennai has seen a more premium segment residential launches this year with Vadapalani having all luxury projects. Iyyappanthangal 100% Vanagaram 42% 58% Poonamallee Vadapalani 100% 100% 0% 20% 40% 60% 80% 100% Affordable Mid Luxury Figure 5.5: Segment wise property break up

24 2016 Chennai Residential Market Recap OMR A Closer Look Also known as the IT Corridor, OMR (Old Mahabalipuram Road) is promoted by Government of Tamil Nadu as a world-class tech destination with about three-fourths of Tamil Nadu s software exports being shipped out of the corridor which runs from Madhya Kailash to Siruseri. More than 1.2 lakh employees work at the IT companies present in this belt. Along with the presence of Asia s largest IT Park i.e. Tidel Park, the other technology parks present here are SIPCOT IT Park, TECCI Park, International Tech Park, Futura Tech Park and Pacifica Tech Park. The prominent IT/ITeS establishments in this corridor are Tata Consultancy Services, Wipro Technologies, Infosys, Polaris Software Lab, Cognizant Technology Solutions, HCL Technologies, Satyam Computer Services, Wipro Technologies, Scope International, Accenture India, Photon Infotech and Bahwan CyberTek Group. Price Trend of key Micro Markets along the corridor Q Q Q Q Q Q Kelambakkam Thoraipakkam Maraimalai Nagar Sholinganallur Karappakam Semmencherry Perungudi Navallur Figure 5.6: Price Trend There has been a marginal increase of prices witnessed in Old Mahabalipuram road and its adjoining micro markets, the residential property prices in the key micro markets remained muted and weaken during the third quarter of the year On an average, the key micro markets along the 50 km stretch have grown at the rate of 4 percent on YOY.

25 2016 Chennai Residential Market Recap Developer Share along the corridor 17% 5% 4% 2% 3% 2% 43% Ashiana Housing Radiance Realty Developers India Ltd Advaita Homes BBCL Surely, OMR Road has been the concentration of big builders in the city. This year, there have been multiple residential launches catering to affordable and mid segment mostly from well known builders in the city such as Ashiana Housing, Radiance Realty Developers India Ltd, Advaita Homes and Casa Grande Pvt Ltd amongst many others StepsStone Constructions 24% PBEL Property Development India Pvt Ltd Casa Grande Private Limited Figure 5.7: Developer Share Project/Unit Launches along the corridor Property Segment Project Name Builder Name Locality Total Units Min. Ticket Prize Affordable Advaita Blossom Advaita Homes Kelambakkam 356 1,985,998 Affordable Affordable Mid Sree Harsham Sree Builders Maraimalai Nagar StepsStone Prasanas Apartment Ashiana Sumbham StepsStone Constructions Ashiana Housing 32 2,734,623 Sholinganallur 76 3,042,239 Maraimalai Nagar 872 1,952,160 Mid BBCL Midland BBCL Sholinganallur 108 3,667,083 Mid PBEL City Tower Siesta PBEL Property Development India Pvt Ltd Mid Radiance Liberty Radiance Realty Developers India Ltd Luxury Casa Grande Perungudi Casa Grande Private Limited Table 5.1: Key Launches of 2016 Kelambakkam 68 3,873,750 Navallur 484 2,379,405 Perungudi 50 6,600,000 Three projects namely, Advaita Blossom by Advaita Homes, Ashiana Sumbham by Ashiana Housing and Radiance Liberty from Radiance Realty Developers India have been some of the star projects to be noted down in terms of scale and affordability. While Casa Grande Perungudi by Casa Grande Private Ltd is a luxury residential markets to look out for.

26 Outlook The Chennai residential market is one of the most stable amongst the top major cities and has witnessed exponential growth over the past decade. IT/ITES, manufacturing and trading industry has changed the real estate landscape of the city and will continue to do the same. Additionally, Tamilnadu government initiatives to improve and upgrade the current physical infrastructure development will boost the real estate activity in the city. The Real Estate (Regulation and Development) Act and the Benami Transactions (Prohibition) Amendment implemented in the year 2016, will ensure the transparency in real estate sector and also help home buyers to take informed decisions. The Centre s move to demonetize Rs 500 and Rs 1000 currency notes has hit the residential property market, making it more favorable for the buyers. Property developers in the city are reported to be cutting prices by up to Rs 20 lakhs on slowmoving projects. With the impact of demonetization and regulatory bills on the Chennai residential market, the coming time frame will surely witness price correction and transparency in the unorganized real estate sector, it seems that for home buyers ache din will not be a distant dream. The South and West Chennai micro-markets shall continue to remain as the most sought after destinations for home buyers due to the availability of commercial office spaces, improved social and physical infrastructure and IT population in the region.

27 About QuikrHomes QuikrHomes is India s leading digital real estate business. We have the largest and most comprehensive list of detailed real estate sales and rental options covering all cities and budget categories. In the highly volatile and scattered Indian real estate market it is quite challenging to understand the dynamics and make profitable investments. We help investors to take informed decision backed by real time data. We capture real estate data across India and also update historical data of supply & absorption in top cities. To ensure the most up-to-date and detailed data availability, our dedicated team/analysts monitor property activity from a number of sources, including developers and property brokers, real estate forums and property listings, as well as our own intensive research. Our research services give clients the tools to review & analyze markets and realty insights that support successful investment strategies. The solutions we provide always cater to our clients needs as we ensure that all captured data and all customized reports undergo thorough due diligence by our in-house audit team. Services Provided: Land Potential Assessment Customized Reports Competitive Benchmarking Study Market Assessment Reports Feasibility Reports Quarterly demand Supply Analysis Report Projects Monitoring Services Tier 1 Cities Residential Projects Details with historical price & Absorption Trends Authors Rahul Panwar Meruga Pallavi Abhai Mani Chaturvedi Asst. Manager Research Research Associate Research Senior Manager Research & Data Services rahul.panwar@quikr.com meruga.pallavi@quikr.com abhai.m@quikr.com For Residential Data Services please contact Prashant Kumar Thakur Head of Research & Data Services prashant.thakur@quikr.com Quikr India Pvt Ltd Next to Manyata Tech Park, Back Gate No 5. Krishnarajapuram Hobli, Bangalore Copyright QuikrHomes CommonFloor. All rights reserved. The information provided herein is based on QuikrHomes & CommonFloor data which is collected from various publicly known sources viz, websites, documents and maps including QuikrHomes & CommonFloor's proprietary data model. Projects mentioned in the report are selected solely on basis of various parameters including number of units, price range and unique selling point, among others. The selection, omission, or content of items does not imply any endorsement or other position taken by QuikrHomes & CommonFloor. The information is provided on an "as is" and "as available" basis. QuikrHomes & CommonFloor expressly disclaim warranties of any kind, whether express or implied, including, but not limited to, the implied warranties of merchantability, fitness for a particular purpose and non-infringement.