A recent report says that the residential housing market in Chennai remained absolutely flat in the first half of 2019, despite prices falling nearly 10% in this period. The city has more unsold flats. Some estimates suggest that it may take four years to clear Chennai’s unsold housing inventory.
Prices may have to correct more. But, a bigger fundamental issue may be that the current generation of younger, salaried people don’t seem to have the same sentimental attachment to owning a home as their parents may have had. Earlier, a home meant security. Now, a more financially savvy generation has figured out that in a market of inflated prices and relatively low rental yields, it may just be prudent to keep renting, as opposed to owning.