Chennai residential market records 2% year-on-year growth: Knight Frank India

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Chennai recorded sales of 3,685 residential units during July-September, registering a two per cent increase year on year as against 3,610 units sold in the same period last year, a study by property consultant Knight Frank India said on Saturday. The supply of new residential projects also witnessed an increase of three per cent year on year at 3,912 new homes during the quarter as compared to 3,795 recorded in the corresponding period last year, the study said.

The office space transactions were 1.8 million square foot, registering a 12 per cent year on year during the period while 374 per cent year-on-year growth was recorded on completion of new projects with 1.1 million sq ft new space getting added during the quarter. "All real estate asset classes have been on the recovery path over the past few quarters. However, the recovery in the residential segment was the swiftest and most substantial. While the increasing interest rates will impact affordability, the underlying need for home ownership remains strong," company Chairman and Managing Director Shishir Baijal said.

"We do not believe that home loan rates approaching 2019 levels will be enough to subdue market momentum significantly," he said.