New launches in smaller pockets
Residential launches in Chennai dropped by 37 percent during 1st quarter and stood at 1,049 units. Mid segment launches constituted almost 98 percent of unit launches during the first quarter. Units of 2-BHK and 3-BHK constituted 38% in each of the launches in the mid segment. Unlike the fourth quarter launch of last year, there were no launches in the affordable segment, according to Cushman & Wakefield survey. The IT corridor (OMR) and the GST road together constituted nearly 35 percent of the total unit launches. Micro markets of Perumbakkam, Thoraipakkam and Pallavaram witnessed new launches.
Surge in office rentals
Prime Indian office markets are seeing surge in rentals. Bengaluru and Mumbai have seen annual rental growth rates rising 4.9 percent and 2.9 percent respectively during first quarter of 2016, according to Knight Frank Asia Pacific Prime Office Rental Index. The index showed 12 out of the 19 markets tracked have registered positive rental growth in the first quarter of 2016, as against 8 markets that showed upward rental move in the previous quarter. Owing to the rising demand, developers with ready commercial projects are witnessing change in business scenario since the past few quarters. It is expected that the strong rental growth trend will continue in the next 12 months for Mumbai, New Delhi and Bengaluru prime offices.
Source: Times Property, The Times of India, Chennai