Luxury housing demand sustains, with marginal q-o-q increase in sales

• The moderate 5% q-o-q improvement in Chennai’s luxury segment sales in Q4 was supported by a corresponding increase in launches. This rising sales trend indicates a healthy momentum in luxury housing demand.
• 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 Q4 were Brigade Icon and Appaswamy Parkhouse Mews.

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

• The luxury residential market experienced a significant increase in launches, which were up by 85% compared to the previous quarter.
• The Off-Central submarket accounted for the largest share (79%) of the city’s luxury segment launches, followed by the Central and Premium. Prominent launches in Q4 included Skylon by Appaswamy, Malkoha and Belmont Residences.

Rising sales drive capital values upwards; rents remain stable

• Luxury housing rents remained almost unchanged during the quarter. While demand for completed high-end properties remains healthy, rents have remained range-bound.
• Capital values witnessed a growth of 2% q-o-q, attributed to an increase in the segment’s sales. Luxury housing in the affluent neighbourhoods of Nungambakkam, Adyar and Saidapet, fetched higher prices, supported by their favourable location and proximity to amenities.

Outlook: Consistent growth in the luxury residential sector is expected in the near-term

• Luxury housing activity is currently concentrated in the Central locations of the city. However, it is likely to expand to other prime corridors, driven by commercial sector growth, infrastructure improvements and projects offering premium experiences and amenities.
• Rents and capital values in the segment 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.