REAL ESTATE CHENNAI -

Chennai City has seen an average correction in apartment prices of around 10 per cent over the past six months, according to realty market participants. The correction is driven by what buyers are willing to pay now rather than actual rate cuts by developers.

This being said, the main city areas and the central business districts have remained relatively unaffected, given the advantage of location and lack of developable space. It is the suburbs and the peripheral areas such as Ambattur, an industrial suburb to the west of the city; along the OMR towards Siruseri, Kelambakkam – about 25 km south of Chennai; and the GST Road (NH45) that have borne the brunt of correction. Developers predict that prices may remain stagnant or may even fall further in the short term.

A steady rise in interest rates, excess supply and weak market conditions prevailing across the residential belts of Chennai appear to be the prime cause for the correction in real-estate prices. Lack of infrastructure development at the expected pace in the suburbs is also a factor limiting demand for higher-priced properties in these areas.


While apartment prices have witnessed a correction, developers feel that the capital value of land has remained stagnant in the past few months, with room to strengthen in the long term. The volume of transactions seen in purchase or sale of land itself has got reduced. Sale of land is partly need-based and developers are restraining themselves from further acquisition.