M A R K E T B E AT

CHENNAI
Residential Q1 2021

Surge in residential launches indicates strong recovery momentum

Chennai’s residential sector began 2021 on a high note with a substantial launch of nearly 7,500 units in the first quarter, thereby setting a
robust foundation for the year ahead. Increased number of launches in the southern and western suburbs has been driven by large
7,493 UNIT LAUNCHES (Q1 2021) residential developments in locations such as Perumbakkam, Thalambur, and Thirumazhisai. Of the total units launched, nearly 45% of the
units were located in the Suburban South II submarket and 31% in the Suburban West submarket. The Chennai skyline is set to c hange
with developers taking advantage of the increased FSI norms and planning greater number of launches in the high-rise category. Some of
SHARE OF SUBURBAN SOUTH II IN the significant launches in this quarter were VRX 360°, Crown Residences, TVS Emerald Peninsula, Bollineni Zion and Adroit Prosper, all of
45% NEW LAUNCHES (Q1 2021) which fall under the high-rise category. Prominent developers who launched projects in this quarter were Baashyam, Vijay Raja Homes Pvt.
Ltd., Adroit Urban Developers Pvt. Ltd., Emerald Haven Town and Country Pvt. Ltd among others.
SHARE OF UNITS LAUNCHED IN
56% AFFORDABLE SEGMENT (Q1 2021) Affordable segment dominates launches
Exclusive affordable housing projects such as VRX 360°, Bollineni Zion, VGK Saindhavi were launched in Q1, with this segment accounting
for around 56% of the total units launched in this quarter. Mid-segment, which has seen an average increase of 4% y-o-y, continued to hold
a significant share (29%) in the units launched as well. Locations such as Thirumazhisai, Perumbakkam, Koyambedu, Thalambur,
Manapakkam witnessed launches in the affordable and mid segments. Developers are bound to maintain focus on these segments which
MARKET INDICATORS OVERALL Q1 2021
have a solid consumer demand. Low home loan rates and an extended period of tax deductions on home loan interest have played a
significant role in diving demand in the affordable housing segment. Luxury segment also gained traction with the current quarter witnessing
a third of the total units launched in this segment during the whole of 2020.
Y-O-Y 12-Months
Change Forecast
Sales continue momentum; capital values remain stable
New Launches Capital and rental values remained stable across all submarkets in Q1. Sales picked up pace at the end of 2020 and have managed to
sustain the momentum in the current quarter. Developers continued to offer incentives like no pre-EMI for 12 months, reduced booking
charges and discounts on the quoted rates to attract buyers. Casagrand, one of the prominent developers in the city, saw robust sales over
Units Sold the last two quarters as a result of discounts across various projects. For instance, in two of its project launches last quarter - Firstcity and
Athens, the developer has sold nearly 50% of the units in this quarter. The demand for spacious homes like villas and luxurious apartments
has also risen with Casagrand reporting 100% sales of its 101 villas in ‘Casagrand Vistaaz’ within three days of launch. Similarly, another
Average Capital prominent developer, Emerald Haven Town and Country Pvt Ltd has sold nearly 30% of the total units launched in ‘TVS Emerald Peninsula’
Values (INR/sf) that was launched during the quarter. This momentum in sales, especially in affordable and mid segments, is expected to conti nue in the
upcoming quarters.

SIGNIFICANT PROJECTS LAUNCHED IN Q1 2021

BUILDING LOCATION DEVELOPER UNITS LAUNCHED RATE*(INR/SF)

Crown Residences Koyambedu Baashyaam Constructions 2,078 7,599

Emerald Haven Town and Country

TVS Emerald Peninsula Manapakkam 392 5,299
Private Limited
M A R K E T B E AT

CHENNAI
Residential Q1 2021
RENTAL VALUES AS OF Q1 2021 CAPITAL VALUES AS OF Q1 2021
AVERAGE QUOTED
AVERAGE QUOTED QoQ CHANGE YoY CHANGE SHORT TERM QoQ CHANGE YoY CHANGE SHORT TERM
SUBMARKET SUBMARKET CAPITAL VALUE
RENT (INR/MONTH) (%) (%) OUTLOOK (%) (%) OUTLOOK
(INR/SF)
Hig h -e nd se gmen t High -e nd se gment
Central 100,000-250,000 0% 0% Central 23,000-27,000 0% 0%
Off Central - I 90,000-150,000 0% 0% Off Central - I 18,000-23,000 0% 0%
Off Central - II 50,000-130,000 0% 0% Off Central - II 12,000-17,500 0% 0%
East Coast Road 90,000-2,48,000 0% -3% East Coast Road 6,000-9,500 0% 0%
M id se g me nt M id se g me nt
Central 50,000-75,000 0% 0% Central 14,000-18,000 0% 0%
Off Central- I 45,000-80,000 0% 0% Off Central- I 15,000-18,000 0% 0%
Off Central- II 25,000-50,000 0% 0% Off Central -II 8,400-10,000 0% -1%
Suburban South - I 21,000-31,000 0% -4% Suburban South - I 5,000-7,400 0% -1%

Suburban South - II 14,000-24,500 0% -4% Suburban South - II 4,000-7,400 0% -1%

Suburban North 4,200-6,950 0% 0%
Suburban West 4,400-8,000 0% 0%
East Coast Road 4,500-6,500 0% 0%
SIGNIFICANT CONSTRUCTION COMPLETIONS IN Q1 2021
BUILDING LOCATION DEVELOPER UNITS LAUNCHED UNIT SIZE(SF)
Kapil Kanala
Primera Mugalivakkam Casagrand Builder Pvt. Ltd. 188 584-2,096 Senior Associate Director, Research Services
+91 40 40405555 / kapil.kanala@ap.cushwake.com
SIGNIFICANT PROJECTS UNDER CONSTRUCTION IN Q1 2021
BUILDING LOCATION DEVELOPER UNITS LAUNCHED EXPECTED COMPLETION
Notting Hill Nungambakkam VGN Developers 166 Q2 2021
M One Madhavaram Lokaa Developers 234 Q4 2021

Data collated from primary and secondary resources. Estimations are subject to change
* Rental and capital values have been depicted only for key submarkets
** Quoted capital value on carpet area based on agreement values which includes, Base Rate, Car Parking Charges, Internal Development Charges, etc.
The above values for high-end segment are for units typically of 1,500-2,000 sf
The above values for mid segment are for units typically of 1,000-1,400 sf
Affordable housing has been defined as units with a carpet area of 60 sq.mt in metros / 90 sq.mt in non -metros and value up to INR 45 lakh
cushmanwakefield.com
A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION
KEY TO SUBMARKETS Mi d Se g m e n t Cushman & Wakefield (NYSE: CWK) is a leading global real estate services
H i g h -e n d Se g m en t Ce ntr a l: Bo a t C l u b , Po e s Ga rd e n , N u n g a mb akka m firm that delivers exceptional value for real estate occupiers and ow ners.
Ce ntr a l: Bo a t C l u b , Po e s Ga rd e n , N u n g a m ba kkam Off Ce ntr a l-I: R .A. Pu ra m , Ab h i ra m a p u ram, Al w a rp e t a n d Te yn a m p e t Cushman & Wakefield is among the largest real estate services firms w ith
Off Ce ntr a l-I: R .A. Pu ra m , Ab h i ra m a p u ram, Off Ce ntr a l -II: T.N a g a r, Myl a p o re , An n a n a g a r, Ki l p a u k, Th i ru va n m i yu r, Ad ya r, Ko ttu rp u ra m , Be s an t approximately 51,000 employees in 400 offices and 70 countries. In 2018, the
Al w a rp e t a n d Te yn a m p e t N a g a r, K.K.N a g a r, Ve l a ch e ry, Va d a p a l a n i firm had revenue of $8.2 billion across core services of property, facilities and
Off Ce ntr a l -II: T.N a g a r, Myl a p o re , An n a n a g a r, Subur ba n Nor th - Ma d h a va ra m , Pe ra m b u r,Th on d ia rp et project management, leasing, capital markets, valuation and other services.
Ki l p a u k, Th i ru va n m i yu r, Ad ya r, Ko ttu rp u ra m , Subur ba n W e s t : Mo g a p p a i r, N o l a m b ur, Am b a ttu r, Po o n a ma ll e e H i g h R o a d ©2021 Cushman & Wakefield. All rights reserved. The information contained within this
Be s a n t N a g a r, K.K.N a g a r, Ve l a ch e ry, Va d a p a l a n i Subur ba n South-I: R a j i v Ga n d h i Sa l a i (Th i ru va n m i yu r to Ke l a m b a kkam) report is gathered from multiple sources believed to be reliable. The information may
Subur ba n South-II: GST R o a d (Al a n d u r to Ta m b a ra m, Po ru r) contain errors or omissions and is presented without any warranty or representations as
to its accuracy.