Strong demand with increase in sales q-o-q

• There was a notable increase in launches in Q3, reflecting strong demand for spacious homes by reputed developers in prime locations. This positive trend indicates a robust market recovery and growing interest in luxury properties.
• The Central submarket locations, like Anna Nagar and Kilpauk, accounted for most of the sales, followed by the Off-Central submarket. Projects clocking healthy sales in Q3 were Casagrand Mercury Phase-2, Bhaggyam Vriddhi and KCEE Niveditham.

Strong increase in new launches compared to the previous quarter

• The luxury residential sector in Chennai saw a remarkable 690% q-o-q increase in launches compared to the previous quarter. This surge is due to market fluctuations and regulatory changes, indicating a market stabilisation after the previous quarter’s downturn.
• The Central submarket accounted for most of the luxury segment launches, followed by the Off-Central and Premium.

Stable rents and capital values in the city

• During the quarter, rents for high-end homes stayed the same, but they were up by around 1.7% y-o-y.
• Capital values witnessed marginal growth of only 0.1% q-o-q, with previous price hikes impacting price movement. Affluent neighbourhoods, like Nungambakkam, Adyar and Saidapet, fetched higher prices, supported by their location.

Outlook: Strong demand anticipation in the coming years

• The city’s luxury property market is anticipated to be driven by steady demand and the festival season at year-end.
• High-end real estate is likely to see price increases, especially in areas that will be impacted by the forthcoming Phase 2 of the Chennai Metro Rail and various road widening initiatives across the city.