Luxury housing demand sustains, with healthy q-o-q growth in sales

• Chennai’s luxury housing market showed robust growth in Q1, with sales surging 43% q-o-q, bolstered by a matching increase in new launches. This upward trend in sales suggests strong and sustained demand for high-end residential properties.
• The Off-Central submarket locations, like Guindy and Mount Road, accounted for most of the sales, followed by the Central submarket. Projects clocking healthy sales in Q1 were VGN Fairmont and Casagrand Avenuepark.

Significant increase in high-end launches q-o-q

• The luxury residential market experienced a significant increase in launches, which were up by 33% compared to the previous quarter.
• The Southern Suburbs submarket accounted for the largest share of the city’s luxury segment launches, followed by the Central and Off Central submarkets. Prominent Q1 launches included Prema Saraswathi by Ramaniyam, Brigade Altius and Baashyaam Enchanted.

Rising sales drive capital values upwards; rents remain stable

• Luxury housing rents held steady in the quarter despite strong demand for finished high-end properties. Capital values witnessed a growth of 3% q-o-q, attributed to an increase in the segment’s sales.
• Luxury housing in the affluent neighbourhoods of RA Puram, Adyar and Mylapore fetched higher prices, supported by their favourable location and proximity to amenities.

Outlook: Luxury residential market demand to sustain and expand beyond central locations

• Luxury housing focuses on centrally located clusters but is expected to expand to other prime corridors. This spread is driven by commercial growth, improved infrastructure and projects offering premium amenities.
• Rents and capital values are expected to rise in the medium-term, backed by Metro Phase 2 connecting suburban locations with core city and prominent office and retail hubs.