Housing Sales in Chennai May Increase by 30% in 2021

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Housing sales in Chennai is likely to increase by at least 30 per cent this year, while prices may rise by up to 5 per cent on the revival of demand for residential properties because of lower interest rates and economic recovery, property brokerage firm PropTiger said on 3rd March. The new housing supply will also rise this year in Chennai, it said. 'Strong sales velocity is likely to happen in 2021, owing to the fact it took off in 2020 during the months of July, August and September extending up to the festive season...Minimum 30 per cent rise in demand is expected. In terms of new supply, Rangarajan said Chennai might surpass last year's numbers of 12,380 units much before the year ends. On prices, Rangarajan said a significant section of buyers have realised that prices are not going to go down any further and discount offers offered by developers are also going down. 'The price of raw materials is rising. So a reduction in prices will be a challenge for developers leading to stability in them. We won't be surprised if at this point a certain degree of price appreciation also takes place, to an extent of 5 per cent. The average rate of new properties in Chennai stood at Rs 5,228 per sq ft at the end of 2020.