Unit sales in the Luxury segment up 12.6% q-o-q

• Chennai saw 12.6% q-o-q growth in Luxury housing sales, with most of the sales observed at Vadapalani, Kilpauk and Kotturpuram, all of which are part of the Central submarket. On a y-o-y basis, there has been nearly 10% growth in the city’s sales momentum in this segment.
• The city’s Luxury housing market is gaining momentum from rising preferences among home buyers for customised offerings, global design, world-class amenities and best-in-class infrastructure, as has been evident from the improved sales momentum.

New launches up by 55% y-o-y

• New launches in the Luxury segment were down 64% q-o-q; however, on a y-o-y basis, there has been a 55% increase, indicating strong demand from buyers. All the quarterly launches were in the Central submarket, with a few of the prominent project launches being RAMS Green Inns and Nahar Jasoda, among others.
• Most well-known developer brands in Chennai are now incorporating Luxury housing projects into their portfolios, backed by rising demand. Fourth quarter launches were largely recorded in prominent locations like Adyar, Besant Nagar and Kilpauk in the Central submarket.

Capital values up 1.7% q-o-q

• Capital values in the Luxury segment were up 1.7% q-o-q amid rising demand and low available inventory. Prices rose the most q-o-q in the Central and Off-Central submarkets.
• Rents for luxury homes were mostly unchanged during the quarter.

Outlook: Healthy demand for Luxury homes to continue in 2024

• The city’s Luxury residential sector is expected to witness sustained momentum in 2024, backed by an increased number of project launches and improved demand trends. This is also likely to result in an appreciation of property values in the city.
• The Luxury housing segment in the city is currently active in the Central and Off-Central submarket locations. However, it is also likely to expand to other prime locations with projects offering good connectivity, specialised amenities and premium experiences, thereby attracting high-net-worth individuals who are driving the luxury housing demand in the city.