Chennai, June 29 (PTI): The Chennai residential market has witnessed exponential growth in the past decade,a majority of which was contributed from IT and manufacturing sectors, a study by real estate firm CBRE South Asia Ltd said. Also Read - Lionel Messi Misses Out On FIFA 21 Team Of The Year's Starting XI For The First Time Ever; Cristiano Ronaldo, Robert Lewandowski Find a Place

Despite hiccups faced by the industry due to negative sentiment that generated following the deluge in 2015, the residential market in the city continues to ‘strengthen’, it said. Also Read - Horoscope, January 23: Relaxed Day For Leos, Scorpions Should Stay Away From 'Wheels'

“While Bengaluru and Hyderabad are significantly dependent on IT populace, Chennai’s residential activity is driven by not just IT,but by manufacturing and trading sectors,resulting in a stable residential market”, the study said. Also Read - Vijay Mallya Has Applied For ‘Another Route’ to Stay in UK, Says Lawyer

Stating that job creation in the region plays a vital role in boosting residential sales, it said expansion initiatives by corporates would continue to support the growth.

“Commercial office space witnessed a steady increase in the last two years due to expansion of corporates, which is likely to continue and propel residential demand”, it said.

The policy initiatives by the Tamil Nadu Government would further propel the demand for housing, the study said, adding that RERA and GST implementation would have a positive impact on housing sales.

South and West Chennai markets were expected to be the most attractive destinations for home buyers due to increase in IT population and infrastructure.

The study was released by officials of the CBRE South Asia Pvt Ltd after inaugurating the three day CBRE PropFair here at Chennai Trade Centre.

More than 300 projects by 60 developers would be showcased during the expo.

“The residential market in Chennai has grown by 17 per cent CAGR over the last decade and the city has witnessed increased residential development activity”, CBRE, India, Head-Residential Services, Rajat Johar said.

“We are hopeful that the policy initiatives by the State government will further augment housing demand with a long-term impact on residential market in the region”, he added.

This is published unedited from the PTI feed.