The city witnessed a price growth of 7% YoY. South and West micro markets together accounted for 91% of the total sales during the period
Chennai recorded office transactions of 3.9 mn sq ft in CY 2021: Knight Frank India
Manufacturing sector was the most active sector during H2 2021 accounting for 44% of the total area transacted during the period
January 5 2022: In a year marred by pandemic and lockdown, Chennai has shown resilience in the performances of both office and residential asset classes during the year 2021. In their latest report, Knight Frank India noted that Chennai’s residential market witnessed a steady recovery with sales rising by 38% year on year (YoY) to be recorded at 11,958 housing units. New launches recorded a significant rise of 77% YoY with the addition of 12,783 units in 2021. The total office transactions for the calendar year 2021 stood at 3.9 mn sq ft. New completions in 2021 for office space was recorded at 1.8 mn sq ft.
Knight Frank India today launched the 16th edition of its flagship half-yearly report – India Real Estate: H2 2021 – which presents a comprehensive analysis of the residential and office market performance across eight major cities for the July-December 2021 (H2 2021) period. The report highlights that Chennai witnessed sales of 6,206 housing units in H2 2021, a 9% growth in YoY terms. Sales were concentrated in the south and west micro-markets, together accounting for 91% of the total sales during the period.
In H2 2021, the share of projects with ticket sizes of > INR 10 million increased to 23% of the total sales from 18% in H2 2020. Conversely, the city witnessed a gradual decline in the share of sales of ticket sizes < INR 5 mn from 54% in H1 2018 to 33% in H2 2021.
In the office performance, the Chennai office market has recovered well from the second wave in H1 2021 with transaction volumes in H2 2021 bouncing back 123% since then. Similarly, the average transaction size has also risen 81% during the same period.
The manufacturing sector was the most active during H2 2021 accounting for 1.1 mn sq ft or 44% of the total area transacted during the period. The Information Technology sector accounted for 0.5 mn sq ft or 20% of the space transacted during H2 2021 compared to 64% in H2 2020.
Srinivas Anikipatti, Senior Director- Tamil Nadu & Kerala at Knight Frank India said, “Even though the transaction levels have remained subdued during the year, the market has observed an uptake in leasing activity in the second half of the year. Price value have also stabilised in the 6-month period.
There are early signs of recovery and the market is expected to see an upward curve in the office transaction volumes in the medium to long term.”
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Knight Frank India is headquartered in Mumbai and has more than 1,200 experts across Bangalore, Delhi, Pune, Hyderabad, Chennai, Kolkata and Ahmedabad. Backed by strong research and analytics, our experts offer a comprehensive range of real estate services across advisory, valuation and consulting, transactions (residential, commercial, retail, hospitality, land & capitals), facilities management and project management. For more information, visit www.knightfrank.co.in