As 2014 draws to an end, CommonFloor has identified 14 major trends that have influenced the real estate market of Chennai over the year.

1. Major Trends That Shaped
Chennai’s Real Estate
Market In 2014

3. In 2014, Chennai witnessed the launch of about
360 projects while 1200 projects were expected
to be completed during the same period which
shows that developers are now cautiously
launching projects.
#1

4. Out of the total supply, 66% projects were launched
in South Chennai, followed by 25% in West and 6%
in the Central part of the city.
#2

5. Over 80% of the new supply comprised of small-
size projects that had less than 100 units each. This
could be because Chennai is essentially driven by the
presence of several local developers.
#3

6. Central Chennai (Egmore , Ashok Nagar) recorded
a whopping 99% supply of small-size projects
comprising less than 100 units each. Absence of
large tracts of land in this part of the city is one of
the key reasons for this.
#4

7. Owing to its proximity to GST Road, a popular
IT/ITeS SEZ and ancillary manufacturing industry
hotspot, West Chennai also witnessed demand by
professionals working in commercial spaces.
#5

8. Chennai market saw a good absorption of units that
were launched during 2014. Poonamallee tops the list
with 79% absorption, followed by Guduvancheri
with 77% and Guindy with 54%.
#6

9. Property prices in prominent micro markets
remained, more or less, stable during the year 2014
with only a few localities showing marginal increase
and few showing downward trend.
#7

10. Out of the total supply in 2014, affordable
properties topped the list with 33%, followed by
mid-segment with 30% supply. Interestingly, ultra-
luxury segment witnessed more new supply as
against the luxury market.
#8

12. Unlike conventional market trends, Chennai saw a
whopping 23% of overall supply for plots in the year
2014. This was quite contrary to the trend seen in
most major metros in the country.
#9

13. The Western part of Chennai witnessed high
demand for Villas and Row Houses while the South
experienced high demand for apartments.
#10

14. Year 2015 is likely to see good ready-to-move-in
supply across the city. Maximum unit supply is
expected to come up in the southern region (65%),
followed by the western belt with 23%.
#11

15. Year 2015 is likely to see good ready-to-move-in
supply across the city. Maximum unit supply is
expected to come up in the southern region (65%),
followed by the western belt with 23%.
#12

16. The southern region that includes top localities like
Velachery, Tambaram, Madipakkam, Medavakkam,
Pallikaranai, Chromepet, OMR and Urappakkam
houses most of the top 10 rental markets in
Chennai.
#13

17. Out of the total available properties for sale in
Chennai, resale properties comprised of a whopping
44% of the overall supply.
#14

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