APPD Market Report Article

Chennai

May 26, 2024

Dr Samantak Das, Head of Research, India

1.5%

INR 30.8

N/A

Apartment sales in the luxury segment up 1.4 times q-o-q

  • Chennai saw a 141% growth in luxury housing sales compared to the previous quarter, with most of the sales activity observed at Kilpauk, Kotturpuram and Vadapalani locations, part of the Central and Off Central submarkets. On a y-o-y basis as well, there has been a 25% growth in the city’s total unit sales.
  • The city’s luxury housing market is experiencing higher traction due to increasing demand for customised offerings, global design, world-class amenities and infrastructure among target clientele.

New launches record significant q-o-q growth

  • Launches in the luxury segment in 1Q were the highest since 2007, indicating growing demand for the segment. Locations like Kilpauk, Saligramam and Guindy in Central and Off Central submarkets were the major contributors.
  • Reputed developers led the 1Q luxury residential launches, driven by rising demand. Some prominent project launches in the segment were Casagrand Mercury Phase 1 and 2, Pushkar’s Phoenix, VGN Kensington and Arihant Melange among others.

Healthy strenghtening in home prices

  • Capital values saw a 1.9% q-o-q growth due to increased demand for luxury projects among homebuyers.
  • Rent growth of 1.5% q-o-q in the luxury segment was largely driven by projects in the IT corridors of the city, where rents have shown good resilience.

Outlook: Healthy traction in luxury segment expected to continue

  • With office market growth showing healthy momentum, sustained growth is anticipated in the luxury residential segment as well. As project launches grow and demand remains steady, resultant capital value appreciation is also on the cards moving ahead.
  • The city’s growing affluent population, rising disposable incomes amid high demand for luxury properties, as well as its IT hub status, should continue to have a positive impact on the luxury housing demand. 

Note: Chennai Residential refers to Chennai's prime residential market.

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