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Indian Real Estate News : Chennai
Launching new projects
Source: The Times of India Sep 07, 2016
The total number of affordable housing launches in the country has increased by 17 percent. Chennai sees highest number of launches in the mid-housing segment though.

The report on residential market released last month by real estate consultancy Cushman & Wakefield, reveals that the affordable housing sector has seen a massive surge of close to 100 percent (double) in new launches in the first half of 2016 (H1 2016), as against same time last year. The total number of affordable housing units launched in H1 2016, in the top eight cites (including the four major metro cities, Bangalore, Hyderabad, Pune, and Ahmedabad) were recorded at over 17,000 units; while the total units launched in these locations were recorded at 60,000 in H1 2016 registering an increase of approximately 17 percent year on-year (y-o-y).

Anshul Jain, managing director, India, Cushman & Wakefield, said, "The rise in the launch of affordable housing can be attributed to a steady demand for this segment of housing in key cities. The uptake of affordable housing in the market will have a cascading impact on the overall economy at large." Continuing further, he said, "We expect to see more affordable housing projects to come up given that there is a cost benefit in creating these units. The time taken from ground breaking to completion is lower than that for the mid or high end apartments. Also sales can happen a lot faster thus helping developers realise their costs earlier than usual."

In Chennai, the total launches were recorded at 3350 units with a heavy concentration of units being launched in the high end segment that constituted over a third of the total launches. The city has seen some demand for high end projects within the city that is now being catered to by the developers.

Mid end properties locations many of which saw an upward incline in capital values. Significantly, suburban south (Alandur, Ekkatuthangal, Adambakkam, Nanganallur, Medavakkam, Perumbakkam, Pallavaram, 200 ft road, Vandalur-Kelambakkam Road) registered an annual growth of 18 percent in H1 2016. Velchery recorded an increase of 11 percent in capital values.

V S Sridhar, managing director, Chennai, Cushman & Wakefield said, "Launches will remain moderate in the next quarter. New unit launches are expected to remain tepid on account of a lean buying period in the upcoming quarter. Capital and rental values are likely to remain largely range-bound on the back of stable demand-supply scenario."

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