South and West Chennai: Prime Housing Corridors in 2026
South and West Chennai are poised to become major residential development corridors in 2026, according to a study published by the Confederation of Real Estate Developers' Associations of India (CREDAI) in Chennai. This growth is facilitated by the development of the road network and the Multi-Modal Transport System (MRTS).
The study highlights how increased infrastructural development and government support have altered buyer preferences, making the Southern and Western suburbs the most desirable options for housing in the upcoming year. Despite some macro-economic fluctuations, the residential sector in Chennai has remained resilient.
Infrastructure Push Driving Demand
According to the report, the development of infrastructure has been instrumental in attracting residential interest in West Chennai. The start of the Kuthambakkam Bus Terminus and developments related to Chennai Metro Rail Corridor 4 have further enhanced connectivity to the western suburbs, drawing more homebuyers to the region.
South Chennai continues to benefit from well-developed roads and its proximity to large IT and industrial hubs. Regions along the Old Mahabalipuram Road (OMR) and Grand Southern Trunk Road remain the most bustling residential areas due to high absorption levels. Strong sales movements were observed in prime micro-markets such as OMR, GST Road, Porur-Poonamallee Road, and the amalgamated western suburbs.
Sales Momentum and Market Stability
CREDAI Chennai predicts that sales in the housing sector will cross 15,000 units in FY 2025-26, marking an 18% increase from the 12,942 units sold in 2024. Despite inflationary pressures and economic challenges, residential property prices in Chennai have seen only marginal changes, cementing the city's reputation as an affordable real estate destination compared to other major metros.
“Chennai remains distinct for its ‘price stability’ and ‘end-user demand-driven’ demand,” the report noted. The city's property market is attracting people looking for long-term value, unlike markets driven by speculation.
Support from Policies to Enhance Affordability
Mohamed Ali, president of CREDAI Chennai, stated that easing of policies and monetary measures will boost homebuyer sentiment in 2026, particularly in the low and mid-budget segments. Factors such as RBI repo rate reductions, GST simplification on construction materials, and favorable government regulations are expected to improve affordability and the overall market environment.
Low borrowing rates and decreased construction costs may benefit pricing and supply along main residential routes. The report reiterated that South and West Chennai are expected to continue as the prime movers for housing demand in the medium-term future. Enhanced MRTS connectivity, expansion of arterial roads, and connectivity to employment nodes in the IT, manufacturing, and services sectors continue to drive demand.
Developers are increasingly targeting these regions due to the availability of larger parcels of land, opportunities for integrated developments, and rising requirements for well-planned communities. The residential property market in Chennai is supported by a well-balanced ecosystem of infrastructure development, stable government policies, and genuine buyer demand.
With large-scale infrastructural developments nearing completion and new ones in progress, South and West Chennai are poised to lead housing development in Chennai in 2026, sustaining the city's reputation as a stable and sustainable housing market in India.
