CREDAI Chennai’s Q2 Report shows a Surge in Project Registrations and Unit Supply – A Significant Decrease in Unsold Units Signals a Narrowing Demand-Supply Gap in Chennai Real Estate Market



Chennai : The CREDAI RAW Report for the quarter ending in June 2023 has once again demonstrated CREDAI’s commanding influence in the real estate sector. Over 50 percent of the registered projects were launched by members of CREDAI. The report also reveals that the real estate market has witnessed a 4.26% surge in residential projects compared to the previous quarter and a 9.26% decrease in the registration of residential projects when compared to Q2-2022. This suggests a dynamic shift in the market landscape when compared to the same period of Q2-2022. In terms of numbers, the registered residential units in Chennai stood at 6,435 units in Q2-2023, while it was 3,889 in Q2-2022. This marks a substantial increase of 65.47%, underscoring a pronounced demand for residential properties during this specific timeframe.


Another increase was witnessed in the number of registered residential units in Chennai, showing a noticeable upswing of 11.74% compared to the preceding quarter, Q1-2023, further underscoring rapid expansion in the residential market during the second quarter of 2023. The report further substantiates that 31% of the announced projects were in Central Chennai, followed by South Suburbs and South Central with 28% and 14% respectively. When it came to residential units, South Suburbs held the largest share at 43%, followed by West Suburbs with 20% and South Central with 14% share during Q2-2023.


“During Q2-2023, Chennai’s real estate sector exhibited growth with a surge in unit registrations. Central Chennai emerged as the prime choice for project registrations, while South Suburbs Chennai led in registered residential units. These findings collectively showcase favorable growth and robust demand for residential properties in Chennai during the second quarter of 2023. With increased project registrations and a notable rise in registered residential units, the real estate market has demonstrated positive momentum,” said Mr. Sivagurunathan, President, CREDAI Chennai.


In the same period (Q2-2023), projects developed by CREDAI members constituted a significant portion (89%) of the residential units sold in Chennai. However, the total units sold (5,498) in this quarter were slightly lower than those in Q1 of 2021 (5,574).


“Regarding unsold completed projects, in Q2-2023, Chennai had 7,938 unsold residential units, of which 5,296 units (67%) are owned by CREDAI members. Although the unsold units by CREDAI members stood at 5,296 units, they are significantly lower compared to the previous quarter, thus closing the gap between supply and demand,” he added.


In terms of numbers, the total residential units registered in June were 234 units (46.8%) by CREDAI members and 268 units (53.4%) by non-CREDAI members, bringing the total to 502 units,” said Mr. Sivagurunathan, President, CREDAI Chennai.


Interestingly in the month of June, the breakdown showed that North Central had 90 units registered by CREDAI members compared to 45 units by non-CREDAI members. West Central had 95 residential units registered by non-CREDAI members, and South Central had 41 (CREDAI) and 27 (non-CREDAI), while the Central region had 75 and 19 units respectively.


Overall, the real estate market in Chennai showed positive momentum during Q2-2023 and the stabilization of unsold units indicates a potential balance in the real estate market.