Chennai has least unsold inventory of 40,000 home units

Chennai real estate has lowest inventory of 40,000 unsold home units among other metro cities due to sudden spurt in the real estate prices, says a study by Jones Lang LaSalle, a global real estate firm. The study said that Chennai had 10 months of unsold inventory, the lowest, when compared with cities like Gurgaon (14 months), Hyderabad (12 months), Kolkata (12 months), Pune (14 months), Mumbai (34 months) and Bangalore (23 months).

Chennai city's unsold inventory was around 25,000 units in the first half of 2012, but then in the last six to nine months it rose to 40,000 units. He said that the lull in sales of residential properties was due to the 15 to 20 per cent increase in capital values over the last six months, which in turn had caused prospective home buyers to delay their purchase decisions.

Moreover, the anticipation of interest rate cuts further into the year and home buyers expectations on price stability has reduced sales velocity, said Puri. Badal Yagnik, managing director — Chennai, Jones Lang LaSalle India, said that the preference for projects closer to the city made developers of property in far-off locations promote their products through innovative financing schemes, discounts and freebies.