Chennai’s property rates will go up 10-15% in next quarter: Credai – Times of India

CHENNAI: Chennai’s property rates will go up by 10-15% in the next quarter which starts in September, said S Sivagurunathan, president of the Chennai chapter of Confederation of Real Estate Developers’ Associations of India (CREDAI), on Wednesday.
Many developers along the OMR and Porur stretch have already started increasing the rates.
He said this increase was inevitable as they were forced to pay higher prices for construction materials that had gone up to 20% and the taxes on each of these materials had gone up in the last two years.
Another reason for the increase is that the unsold stock has come down. In Chennai, only around 5,000 units are presently unsold. Most of them are in the OMR stretch.
As the demand will go up and new launches get announced, the rates will be increased, according to him.
Sivagurunathan told TOI that the steel prices and other material costs had shot up by 20% in the last five years. “Though there is a mild decrease in steel rates, the prices are still high in comparison to 2017 rates and the taxes on these materials are up by 2-5%. With old stock reducing and new projects ready to launch, the developers want to make the most of the demand now as they cannot absorb the losses anymore,” he said.
This ripple effect would be witnessed in Tier II and Tier III cities too.
In Chennai, the demand is for two-bedroom and three-bedroom ready to move in apartments at present. The cost is around Rs 50 lakh to Rs 1.5 crore for these units based on the area and amenities. In the first half year of 2022, Credai developers sold 86% of the total units sold in Chennai. Non-Credai developers sold 6.6%. The Tamil Nadu Housing Board also sold a good number of units.