Listings posted with Magicbricks.com between July and September 2010 reveal that the top ten localities which posted maximum listings were T Nagar,Velacheri, Porur, Adyar, Ambathur, ECR, Kolathur, OMR Road, Besant Nagar and Virugambakkam. Requirements posted on MagicBricks.com reveal that 2 BHK multi-storey apartments are most in demand followed by 3 BHK and 1 BHK apartments. Overall,the supply was highest in the 2 BHK and 3 BHK categories with multi-storey apartments posting maximum listings comprising 52 per cent of the total supply.
However, on comparing the demand and supply data,a mismatch was observed in the number of available options as compared to the demand especially in the 1 BHK and 2 BHK segments where the demand outstrips the supply. The 1 BHK category, which caters to the affordable housing segment,is where the mismatch lies. The demand is robust but options are limited.
On the other hand,in the 3 BHK segment, there is a significant supply of multi-storey apartments with little demand to absorb the existing housing stock.When an investor looks at regular returns out of a residential real estate investment,this is a critical parameter to consider. The smaller units have more demand and are easier to lease out. The demand for bigger units is limited.
Localities such as Adyar,T Nagar and OMR posted 2 BHK and 3 BHK apartments within a higher price range ( 100 lakh and above), while localities such as Ambattur and Kolathur posted more affordable options ( 18-30 lakh). Residential projects comprised 23 per cent of the total supply and maximum listings were posted in the 3 BHK category.
However,requirements posted with Magicbricks.com indicated that the demand was highest in the 2 BHK category which is not being met adequately by the existing housing stock. In the 3 BHK category on the other hand,there is an over supply. The market demand has moved in the direction of apartments.The traditional fixation of standalone property is fast giving place to modern apartments with latest amenities and lifestyles.When one buys a property,the constraints of price are a big consideration.However,for the occupant,the rental options are as wide and scattered as he or she is willing to look for.
In the residential segment,there exists a significant demand for more premium options of 4 and 5 BHK categories which are adequately met by the existing housing stock as indicated by listings posted with MagicBricks.com. The premium segment is well catered to and even the rental market in this segment is mature and well-established.In the rental housing category catering to young and mobile professionals,furnished property fetches better values.Most lessees prefer to move into a new city into furnished accommodation. In cities such as Gurgaon, Delhi and Bangalore,where the workforce is very young,the escalation in rental values from furnished property can be as high as 35-50 per cent.
Times of India epaper, 27 November 2010
Times of India epaper, 27 November 2010
This post first appeared on OMR - Chennai - Realestate | Flats, Villas, Appart, please read the originial post: here
