South and West Chennai to Lead Residential Growth in 2026: CREDAI
Chennai: CREDAI Chennai (Confederation of Real Estate Developers' Associations of India) expects that South and West Chennai will continue as primary residential growth corridors in 2026. This growth is primarily due to the expansion of the Metro Rail and the proximity to major employment centers.
The new Kuthambakkam bus terminus and Chennai Metro Corridor 4 have already led to heightened residential interest in the western suburbs. Redevelopment-led growth in Central and North Chennai can gain further momentum with improved clarity from the government on the Tamil Nadu Apartment Ownership Act. This act is expected to attract more homebuyers and accelerate redevelopment projects, according to Mohamed Ali, president of CREDAI Chennai.
Housing sales in 2025 are expected to cross 15,000 units, marking an 18% increase over 2024, when sales stood at 12,942 units. Despite broader economic uncertainties, prices have seen only marginal adjustments. In 2025, Chennai witnessed robust growth in project launches alongside steady sales momentum. CREDAI data indicates that 26,482 units were launched across about 250 projects by October, with full-year launches expected to be nearly 20% higher than in 2024.
Strong sales traction has been recorded across South and West Chennai, particularly along OMR, GST Road, Porur–Poonamallee Road, Radial Road, and the emerging western suburbs. To further boost affordable housing, CREDAI advocates aligning registration and stamp duty charges for PMAY-U 2.0 dwelling units below 60 sqm with national guidelines. Recognizing compact and studio housing designs as habitable dwelling units, particularly for single-parent households and working women, will further expand access to home ownership, according to Mohamed Ali.
Mohamed further expects RBI repo rate cuts, GST rationalization on select construction materials, and supportive policy measures to enhance affordability and strengthen buyer sentiment, particularly in the affordable housing segment in 2026.
