Chennai residential market remains resilient through the second and third Covid wave. Annual sales in FY 21-22 exceed the pre-Covid level by 25% (FY 19-20). However high unsold inventory remains to be a market concern.
FY 21-22 Highlights
During FY21-22, Chennai records the highest sales of 15.02 thousand units in the past 6 years. Sales have grown by 50% Y-O-Y whereas new supply has grown by 25%. The saleable price has appreciated by 2% Y-O-Y. At the end of the quarter, unsold stock stands at 75.16 thousand units and months inventory at 60 months, indicating an oversupply in the market.
| Annual Sales 1,000 units | Unsold Inventory 1,000 units | New Supply 1,000 units | Saleable Price INR PSF | Month Inventory Month | |
| FY 20-21 | 9.99 | 75.64 | 9.44 | 5,131 | 91 |
| FY 21-22 | 15.02 | 75.16 | 11.78 | 5,214 | 60 |
| Y-O-Y | 50% | -1% | 25% | 2% | -31 months |
Chengalpattu and Tambaram suburbs record the highest sales in Chennai, together they capture 55% of the total annual sales. The most preferred locations in Chengalpattu suburb are Semmancheri and Kelambakkam, and Sholinganallur, Medavakkam and Perumbakkam are the most preferred locations in Tambaram suburb. Proximity to IT Hubs and the ongoing Metro rail project along the MPR Corridor have fueled strong demand for residential projects in southern micro markets.
63% of the total new launches are located in Poonamallee, Tiruvallur and Ambattur suburbs. The new launches to push sales in these suburbs in upcoming years. The majority of the projects launched are reported in the affordable-to-mid budget segment. The Coastal suburb of Chengalpattu alone accounts for 37% of the total unsold inventory in FY21-22.
2BHK and 3BHK are the preferred typologies in the market, contributing 79% to the total quarterly sales. The demand for spacious homes and second homes has increased in the city since the pandemic.
53% of the total sales are concentrated in INR 20-60 Lac cost bracket. The affordable segment continues to drive the residential market in Chennai, INR 3,000-5,000 PSF saleable price segment captures 55% of the total market. IT population contributed to the sales in mid-segment in the southern micro-markets. Demand for larger space in budget ticket size drives demand in peripheral markets.
Micro-market classification
| Micro-market | Location |
| Central Chennai | Raja Annamalai Puram, Nungambakkam, Thiyagaraya Nagar, Egmore, Kodambakkam, Teynampet, Mylapore, Royapettah, Abiramapuram |
| Tambaram | Medavakkam, Sholinganallur, Pallavaram, Perumbakkam, Perungudi, Tambaram, Thoraipakkam, Guindy, Karapakkam, Kovilambakkam, Adyar, Kotturpuram, Tiruvanchery, Sembakkam, Chromepet, St. Thomas Mt. |
| Chengalpattu | Kelambakkam, Thalambur, Semmancheri, Perungalathur, Siruseri, Thiruporur, Kanathur Reddikuppam, Sithalapakkam, Guduvancheri, Maraimalai Nagar, Urapakkam, Chengalpattu, Senneri, Paranur, Mambakkam, Vandalur, Kandigai, Keerappakkam, Kalivandhapattu |
| Poonamallee | Manapakkam, Koyambedu, Poonamallee, Iyyapanthangal, Tiruneermalai, Velappanchavadi, Chembarambakkam, Tharappakkam, Kundrathur, KK Nagr, Vadapalani, Virugambakkam, Valasaravakkam, Ashok Nagar, Vanagaram , Poru |
| Sriperumbudur | Padappai, Oragadam, Sriperumbudur, Vembakkam, Varanavasi |
| Ambattur | Ambattur, Mogappair, Tiruvottiyur, Perambur, Anna Nagar, Thiruverkadu, Ayanambakkam, Padi, Maduravoyal, George Town, Madhavaram, Vyasarpadi, Korattur, Purasawalkam |
| Tiruvallur | Ponneri, Vellaved, Avadi, Tirumullaivayal, Puzhal, Kadambattur |
| CAM | Kanchipuram, Uthiramerur, Pudupattinam |