CHENNAI: Contrary to reports that demand for real estate in Chennai has been stagnant, affordable housing projects in Chennai show strong demand, according to Shriram Properties’ managing director M Murali. The Chennai-based real estate developer currently has affordable housing projects under development of around 3.1 million square feet in the city, with another 2 million square feet in the mid-market segment.
Speaking to Express, Murali said, “There is a myth, just like the myth post demonetisation that prices would fall, that there is no demand for real estate. Contrary to that there is strong demand and prices are unlikely to fall. We have three projects in the affordable segment band currently under construction.” The three projects together account for over 2,600 units and are worth around `950 crore. The average ticket size for an affordable housing unit works out to between `20 to `40 lakh in the city, while the mid-market band ranges between `40 and `80 lakhs.
According to Murali, another 2.2 million square feet is set to be launched in the mid-market price band, which is also seeing signifi cant demand. “This is primarily due to the job generation in Chennai over last fi ve years. While not as high as in Bengaluru, the city is no laggard and that has contributed to demand,” said Murali. The developer is not just concentrating on the TN state capital. It has lined up an investment of around `15,000 crore over the next 7-8 years for develop around 30 ongoing projects, largely residential, across six major cities. “We have completed and delivered 15 million sq ft and currently developing 25-30 projects comprising 60 million sq ft area in Chennai, Bengaluru, Hyderabad, Vizag, Coimbatore and Kolkata,” Murali said.