chennai commercial real estate transactions considered a key indicator of economic activity is showing first signs of stability after a free fall during the early part of this year according to real estate consultants the worst phase for the industry seems to be over as lease rentals both in peripheral areas as well as the central business district cbd are showing signs of settling down in addition to deals getting clinchedtransaction data show that chennai and its adjoining areas witnessed more than 195 million square feet of property deals in the first half of 2009 the whole of 2008 witnessed transactions for around 490 million square feet we do not want to call it recovery as yet but at least we can say the downturn has been arrested in our view the worst seems over property prices are showing signs of holding on and it may not fall further said rajesh babu chief consultant recs group a real estate consultancy which managed the largest deal of rbs in india land it park for 350 lakh square feet this year for instance around guindy in south chennai lease transactions were sealed for rs 45 to 46 a square foot during the peak of real estate activity transaction rates were around rs 55 a square foot likewise in the cbd of chennai transactions were concluded at around rs 60 a square foot this year while the peak rates were around rs 75 a couple of years ago absorption till the end of june stood at approximately 195 million square feet similar to h1 2008 and approximately 29 lower than the peak absorption levels achieved in h1 2007 the largest quantum of absorption has taken place in the suburban areas and within the suburban markets manapakkam ambattur perungudi and taramani saw the highest demand for space due to the robust infrastructure strong connectivity proximity to major markets and rational rentals n hariharan general manager cushman and wakefield international real estate consultants said we havent crossed the woods as yet but clearly in the past one month we have been getting enquiries showing first signs of demand trickling in we need to wait and watch if the demand sustains and breaches the five million square feet mark this year industry sources saideven as the industry is trying to project a revival face clearly there is oversupply in select pockets like old mahabalipuram road omr on the it corridor clearly there are supply overhangs roughly four million square feet are vacant and another two million square feet are under development that pocket of the city remains weak sources addedrajeshctimesgroupcom