All-round optimism over residential property sales in Q2: CREDAI report

There has been a renewed demand on sales of real estate properties across categories with an 'all-round optimism' in the residential sector witnessed during the July-September quarter, a report by CREDAI Chennai said.

According to the realtor's body Confederation of Real Estate Developers' Associations of India (CREDAI), a total of 3,636 residential units were sold in Chennai during the July-September period, which is 16 per cent higher than previous quarter.

Chennai alone accounted for 3,175 housing units, of the 3,636 units sold with the Old Mahabalipuram Road (OMR) popularly known as Information Technology corridor and Grand Southern Trunk (GST) Road becoming the most preferred locations among buyers, a report by CREDAI Chennai Research and Analysis Wing (RAW) said on Sunday.

As many as 113 residential projects were registered with Tamil Nadu Real Estate Regulatory Authority (TN RERA)during the quarter ending September 30, 2022 comprising 5,232 residential units which was over 34.5 per cent high compared to the previous quarter, the report said.

However, the report did not reveal how many units were sold in same quarter of last financial year. The state government backed TNRERA aims to regulate and promote the real estate sector by regulating the transactions between buyers and promoters of residential as well as commercial projects.

South suburban and west suburban micro markets contributed to the majority of sales at 65 per cent during the quarter ending September 30, 2022.

"With the onset of festive season, there is an all round optimism over the residential property market.

The recent hike in home loan lending rates has not deterred the serious home buyers... the spurt in the volume of transactions in the recent past is a clear indication that the timing is just appropriate for end users," the report said.

Commenting on the performance during the July-September 2022 quarter, CREDAI Chennai president S Sivagurunathan said, "overall, we have been witnessing a very healthy trend, especially in the Q3 compared to Q1 and Q2. The appetite for residential units is increasing despite talks and fears of a global recession."

Multi-storied projects continue to witness higher number of enquiries while commercial projects also gaining momentum, he said.