CHENNAI: Over 70% of apartment buyers in the city purchase properties below Rs 60 lakh, going by figures thrown up by the just concluded three-day property fair, Fairpro, organised by the Confederation of Real Estate Developers’ Association of India (CREDAI).
Many builders were pleasantly surprised by the overwhelming response from buyers who loosened their purse strings, ending several months of slump in the market. Fairpro turned out to be one of the most expensive weekend shopping sprees of Chennaiites with some 300 home buyers booking homes worth 200 crore. In the previous edition of Fairpro, 272 apartments worth 175 crore were booked.
The event threw up interesting statistics about the realty market, which is seldom available in the public domain owing to the secrecy with which most developers operate. Of the 301 bookings registered at the exhibition venue, a sizeable share – 41% – was in the 30-60 lakh bracket, said CREDAI Chennai president Sandeep Mehta.
The sub-30 lakh segment accounted for 31% of the sales and the 60 lakh to 1 crore bracket accounted for 21% of the sales. In the luxury and super-luxury segments, ranging from 1 crore to 6 crore, only 20 bookings (7%) were reported. While only one residential unit valued at more than 5 crore was sold at the fair, two units were sold in the 3-5 crore bracket and 17 units in the 1-2 crore segment, said Mehta.
The costliest unit sold at the exhibition was a 6 crore villa on the East Coast Road.
In terms of overall business, Jain Housing emerged on top with sales worth 22 crore, followed by VGN with 17 crore, said Mehta.
The outcome of the fair may force many builders to reorient their business with the right product mix to target buyers looking for affordable apartments, said CREDAI Chennai secretary Suresh Krishn. “There is good demand for apartments valued up to 60 lakh and people are ready to buy provided the price is right. Many builders wooed buyers with attractive discounts,” said Krishn.