Shriram Properties, one of south India’s leading real estate companies known for its high quality, delivery standard and transparency, informed that it achieved outstanding record of construction progress in 2019 as a result of the great market sentiment in Chennai. The company is steadily progressing construction of its township project, Park63 at Shriram Gateway, 6 months in advance.
Even as the country faces an economic slowdown, the silver lining has been the resilience in the real estate markets of the metro cities in South India, Chennai in particular, having leveraged the trend robustly. Over the years, Chennai real estate market has been growing by approximately 4-4.5 mn.sq.ft./ year, and is expected to add 6mn.sq.ft. this year with the renewed energy of the developers and the government’s focus on the market.
Addressing the media, Mr. Murali Malayappan – Chairman and Managing Director – Shriram Properties said, “We are very happy to have achieved construction progress of our residential project Shriram Gateway six months way ahead of time. We are seeing an upsurge in Chennai’s real estate market, due to which we have been able to mark this achievement. We are hopeful that with the help of new government policies, the coming year will be a positive year for the real estate sector.”
Shriram Gateway not only offers a great lifestyle to its residents but also uplifts the quality of life in the neighbourhood. It includes two public parks spread over 5.16 acres with recreation areas, sports zones and performance spaces amidst lush green lawns.
A study which was released by ANAROCK earlier this year states that Chennai actually logged a 25 per cent increase in housing sales in the first half of this year. The southern metropolitan area also has the least-delayed housing stock among the top cities in the country, says the study titled Chennai: Driven by Diversified Economic Base.
Developers have managed to achieve this by limiting new launches, focussing on completing delayed projects and aiming for apartment projects that are more affordable to the city's consumers. Chennai's housing sales increase is better than those of its fellow southern metropolises Bengaluru and Hyderabad.
Unlike the luxury craze and exaggerated rates found in many other Indian cities, two-third of Chennai's housing supply was in a relatively more-affordable range—38 per cent of units were priced between Rs 40 to 80 lakh, while another 36 per cent was priced below 40 lakh rupees. Weighted average prices have corrected by 2 per cent in the last four years, since the realty hunch became visible. The ANAROCK study also gave a break-up of the various market dynamics at play here, while South Chennai was the most active housing market with stability in supply and sales, Medavakkam and Sholinganallur were the other important micro-markets.
“Chennai’s real estate market has faced stagnancy during the last few quarters for various socio economic reasons. The Chennai real estate market has turned corners, more recently, owing to reasonable home loans and increased focus of developers’ on completion of projects; bringing in a renewed confidence among the buyers’ of the region. Additionally, boosting measures within the IT sector in the state is enabling the creation of more job opportunities as a result of which, the influx of migration into the city is rising. All of these factors will contribute towards the increase in demand for real estate in Chennai,” stated Mr. Murali Malayappan.
Shriram Properties has been focusing on acquiring stressed assets and adopting development management (DM) model as growth strategy. The company has developed many properties through this model and it is planning to further adopt this model in markets like Bengaluru, Chennai, Kolkata, Vizag and Coimbatore. Shriram Properties is one of the pioneers of the development management model and currently has 27% of its portfolio under this model.