Housing demand reaches a nine-quarter high, with a strong uptick in sales

• Chennai’s residential real estate market surged in Q4, with sales jumping 6% from the previous quarter and hitting a nine-quarter high. This significant growth reflected robust ongoing demand in the city’s housing sector.
• The Southern submarket locations, such as Pallavaram and Sholinganallur, accounted for most of the sales, followed by the western submarket. Projects clocking healthy sales in Q4 were Prestige Pallavaram Gardens, Casagrand Hola Chennai and Casagrand Casamia.

New launches show strong y-o-y growth

• Chennai’s residential market flourished in 2025, achieving a remarkable 57% annual growth in new launches despite a modest quarterly adjustment. This robust expansion demonstrated strong market confidence and surging homebuyer demand across the region.
• The Southern Suburbs submarket accounted for the largest share of the city’s launches, followed by the Western and Northern Suburbs submarkets. Prominent Q4 launches included Nu Tech Central Park, Urbanrise Whispers of Sky and Godrej Azure.

Rising sales drive capital values upwards; rents remain stable

• Housing rents remained almost unchanged during the quarter. While demand for completed, quality housing properties remains healthy, rents have remained range-bound.
• Capital values increased by 15.3% y-o-y, driven by strong sales momentum. Housing options in the affluent neighbourhoods of Sholinganallur, Pallavaram and Porur attracted higher rates, supported by their favourable locations and proximity to social infrastructure.

Outlook: Continued growth in the residential sector is expected in the near term

• The housing market is experiencing growth beyond core clusters, driven by growth is commercial offices in the suburbs. This continues to create new growth opportunities for developers to launch projects across a wide price range.
• Rents and capital values are expected to rise in the medium term, supported by Metro Phase 2 connecting suburban locations with the core city and key office and retail hubs.