Wednesday, January 22, 2014

Housing sales dropped by 33% in Chennai

This is Ashok from Chennai. Of course, I started this blog to share the latest news about real estate in Chennai only. Chennai is one of the major cities in India which emerging in Information Technology, Medical, Manufactures and also Real Estate. Many builders and real estate developers are popular in Chennai. They started to focus on areas such as Poonamalle, Porur, Velachery, Medvakkam, Tamabaram, IT corridor(OMR), East Coast Road, etc. These are the main areas which all real estate promoters are eyeing on. Nowadays the land value in these areas has been soared. People are started to invest in these areas. Real estate promoters are started luxury apartments projects and delivering it to their valuable customers. Though the shortage of sand, the field held on for few months and now resumed as they are using ash bricks which will not needed much curing. They are developing 1BHK flat from 5BHK flat at maximum. Most developing flats are 2BHK and 3BHK flats.

Housing sales in Chennai dropped by 33%in 2013 due to slowdown in realty market in high interest rates according to a report by property consultant Knight Frank. 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. Sales volume has dipped 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. 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. 

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