Chennai's Residential Real Estate Market Soars in 2025
Mr. Mohamed Ali, President of CREDAI Chennai, has forecasted a robust year for the city's residential real estate market in 2025. According to CREDAI Chennai, housing sales are expected to cross 15,000 units, a notable 18% increase over the 12,942 units sold in 2024. Despite broader economic uncertainties, the market has shown remarkable stability, with only marginal adjustments in property prices.
In 2025, Chennai has witnessed a surge in project launches, with 26,482 units launched across approximately 250 projects by October. Full-year launches are expected to be nearly 20% higher than in 2024. The strong sales traction has been particularly evident in South and West Chennai, especially along major roads such as OMR, GST Road, Porur–Poonamallee Road, Radial Road, and the emerging western suburbs. This growth is driven by improved infrastructure, metro connectivity, and proximity to employment hubs.
Looking ahead to 2026, CREDAI Chennai anticipates that South and West Chennai will continue to be the primary residential growth corridors. The expansion of the Chennai Metro and the development of road infrastructure are expected to further boost residential interest. The new Kuthambakkam bus terminus and the completion of Metro Corridor 4 have already attracted more homebuyers to the western suburbs.
Redevelopment-led growth in Central and North Chennai is also expected to gain momentum, provided the government provides clearer guidelines on the Tamil Nadu Apartment Ownership Act. This clarity is crucial for attracting more homebuyers and accelerating redevelopment projects. To further boost affordable housing, CREDAI advocates for aligning registration and stamp duty charges for PMAY-U 2.0 dwelling units below 60 sq. m. with national guidelines. Recognizing compact and studio housing designs as habitable dwelling units, especially for single-parent households and working women, will further expand access to homeownership.
The Reserve Bank of India (RBI) repo rate cuts, GST rationalization on select construction materials, and supportive policy measures are expected to enhance affordability and strengthen buyer sentiment, particularly in the affordable housing segment. Mr. Mohamed Ali, President of CREDAI Chennai, emphasized that these measures will play a crucial role in driving the market forward in 2026.
