Chennai Real Estate 2025: 7% Price With Resilient Demand

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Overview Of Chennai Real Estate

The Chennai real estate market has been optimistic for the decade. In 2024, Chennai was one of the most active residential markets among the top seven cities in India. Chennai contributed around 5% of the total new launches in India, following Delhi NCR. 

Chennai is a futuristic residential hub with burgeoning infrastructure, IT hubs, and automobile industries. Chennai properties come with varied residential options ranging from mid-segment to ultra-luxury apartments. There are various options for villas and plotted developments. 

Chennai witnessed a 5% price appreciation and a 12% increase in sales in H1 2024. Southern and Western Chennai accounted for the maximum number of new launches and sales throughout 2024. This highlights the stability and resilient demand in the Chennai residential market despite price hikes. 

This robust growth indicates the sustained demand and rising confidence of investors in the Chennai residential market. Its IT / ITeS and automobile industries are attracting homebuyers from all over the country to the Chennai real estate market. 

Also read: Mumbai Vs Chennai City: Which Is Ideal For Investment?

Property Prices In Chennai Real Estate

Housing prices in Chennai grew by 5% in the first half of 2024 and overall by 7% YoY. The price appreciation was notably witnessed in micro markets like Parambur, Kelambakkam, Kilpauk, Adyar, and Mogapair, as stated in the Knight Frank Residential Report H2 2024

This is attributed to the booming infrastructure coupled with affordability as compared to other residential markets in India. The price growth is also due to the rising demand for larger homes with expansive layouts. The mid-segment properties led to the price growth in Chennai.

The average property prices in Chennai range between ₹ 6,000 – ₹ 18,000 per sq. ft. The average price of high-segment properties ranges between ₹ 10,000 – ₹ 30,000 per sq. ft. The Off Central region in Chennai recorded 5% YoY price growth. The property prices in South and North Suburban also rose between 5% – 9%, as per Cushman and Wakefield Residential Report Q4 2024

The property prices in Chennai are assumed to increase by 5% – 7% by the end of 2025. Flourishing infrastructure such as metro developments and roadways will uplift the prices in the upcoming quarters of 2025.  

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Rental Values In Chennai Real Estate 

Source: Cushman and Wakefield india–chennai–residential-q4-2024-final.pdf

The rental properties in Chennai are gaining popularity among homebuyers from Tamil Nadu and other parts of the country as well. The rental values rose gradually in the key submarkets of Chennai real estate. The South Chennai and Off Central region witnessed ambitious rental growth in 2024. The growth in rental value was between 5% – 8% in these submarkets. 

The rental values for mid-segment housing in Chennai range between ₹ 18,000 – ₹ 60,000, and high-segment housing ranges between ₹ 50,000 – ₹ 2,50,000. The rental value of Chennai properties varies depending on the location, neighbourhood, project type, and surrounding infrastructure.

The rental value for the high-end housing segment mostly remained stable in most of the submarkets. However, some regions in Chennai saw a steady 1% YoY increase in the rental value. 

This upward trajectory of rental properties in Chennai is indicative of a growing preference for mid-segment to luxury homes among homebuyers. Working professionals prefer rental properties on the outskirts of IT hubs like South and West Chennai, which offer larger homes at relatively lower rates. 

Prominent Micro Markets In Chennai Real Estate 

South Chennai continued to lead the sales growth, accounting for a total of 57%. Key micro markets in this zone, such as Perumbakkam, Kelambakkam, Sholinganallur (OMR), Chrompet, and more, experienced 5% – 12% price growth.

West Zone, once known as the industrial base of Chennai, is now emerging as a robust IT hub. The sales growth in this zone increased by 2% with a 27% share this year compared to the 25% share in H2 2023. Anna Nagar, Mogapair, Porur, and Ambattur contributed significantly to this share. 

Central Chennai witnessed a sales growth of 10% in H2 2024 from 7% in H2 2023. The new launches in the Central Zone rose to 12% in H2 2024 from 7% in H2 2023. The annual price growth in Central Chennai was between 3% – 5%. Key submarkets include Boat Club, Poes Garden, R. A. Puram, Kilpauk, etc. 

There were a total of 17,431 new inventory launches in Chennai, with South and West Zone accounting for 56% and 28% share, respectively. These zones together contributed to 84% of total launches and sales in Chennai, as per the Knight Frank report H2 2024. 

Read this article: Apartments For Sale In Chennai

Latest Trends In Chennai Real Estate

Chennai real estate has been resilient throughout the year despite significant price appreciation. There was a 9% – 12% increase in annual sales in Chennai with the rising demand for premium to luxury properties. The demand for affordable housing segments is declining.

The mid-segment housing properties priced between ₹ 50 Lakhs – ₹ 1 crore kept their dominance in the last year also. It holds a 43% share in the total sales, increased from 40% in 2023. This indicates sustained demand for cost-effective housing options for middle-income families. Chennai properties priced below ₹ 50 Lakhs were less preferred. Their share decreased from 35% in H2 2023 to 27% in H2 2024.

Besides, the high-end properties ranging between ₹ 1 crore – ₹ 2 crores went up from 19% in H2 2023 to 23% of sales in H2 2024. Also, the ₹ 2 crores – ₹ 5 crores housing segment experienced a steady growth of 7%. This change indicates the evolving preference for larger homes with premium amenities. 

Moreover, the demand for ultra-luxury properties priced above ₹ 5 crores remained stable as a niche segment. Mid-segment homes led the launches in 2024, followed by premium and high-end segments. Luxury properties remained the niche choice for high-net worth individuals and entrepreneurs in Chennai. 

Read this: Luxury Real Estate in Chennai 2025

Infrastructure Driving The Growth Of Chennai Real Estate

South Chennai dominated the residential market with its strong IT infrastructure, healthcare, and engineering sector. The well-laid social amenities and excellent connectivity have made it an ideal residential zone.

With several ongoing and upcoming IT landmarks, West Chennai is attracting commercial investors and homebuyers. Once known for its industrial base, the West zone is emerging as the next prominent IT hub in Chennai.

The metro connectivity and roadways are always stimulating the overall growth of Chennai real estate. The metro railways have simplified commuting to major workplaces in the city. The ongoing metro developments are uplifting the property prices in Porur, Kelambakkam, Siruseri, etc. Metro developments are also attracting commercial and retail investments.

Chennai’s advantageous location as the port harbour has also elevated the real estate growth due to the port operations. The automobile and textile industries are also boosting the economy of Chennai, making it a perfect choice for residential and commercial investment.

Apart from this, the metro expansion, proposed Greenfield airport in Parandur, smart cities in the periphery of metro routes, and upgraded rail network will continue to appreciate the property prices in Chennai and accelerate the property demand.

Also read this: Chennai Metro Rail

Property Developers In Chennai Real Estate

Chennai real estate has been resilient throughout 2024. The property demand remained on steady growth with the launches and sales of the affordable segment declining. Keeping up with the evolving aspirations of homebuyers, property developers in Chennai are launching new inventories in the mid-segment and high-end segment categories. Some of the top property developers in Chennai are mentioned below.

Prestige Group

Prestige Group is one of the top property developers in Chennai. Founded in 1986, the group has established itself as a developer synonymous with innovation and luxury. It has diversified its portfolio across residential, commercial, hospitality, retail, and leisure sectors. Prestige Group has delivered over 300 projects, and 170+ million sq. ft. of land is under development. Some of the best projects by Prestige Group are

Brigade Group

Brigade Group is one of the leading real estate developers in Chennai. Since 1986, the group has transformed the landscape with its landmark projects and aspirational communities. They have a presence in sublime cities like Chennai, Kochi, Bangalore, Hyderabad, Gift City Gujarat, Mysuru, Mangalore, etc. It has successfully delivered 280+ projects and served 40,000+ customers. Some of the best projects by Brigade Group are

Hiranandani Group

Hiranandani Group has pioneered itself in designing self-sustained communities and integrated townships. Its distinctive neo-classical architecture stands out among other structures. Founded in 1978, Hiranandani Group has been benevolent in delivering spaces with quality, excellence, and functionality. Some of the best projects by the Hiranandani Group are

TVS Emerald

TVS Emerald is a real estate arm of the 113-year old motor giant TVS Group. The group designs best-in-class homes by collaborating with world-class architects and designers and utilising high-standard construction materials. TVS Emerald Group has a portfolio of 20+ projects and has developed 5 million+ sq. ft. of land. Some of the best projects by TVS Emerald Group are

Alliance Group

Alliance Group is one of the largest real estate developers in South India. They aim to build homes that exceed the expectations of their homebuyers. The core values include premium quality, innovation, transparent communication, and exemplary customer service. With 21+ years of experience, it has 72 million sq. ft. under development and in the pipeline. Some of the best projects by Alliance Group are

Arun Excello Builders

Arun Excello is a renowned organisation across the engineering, mechanics, and real estate industries. Its top-notch quality and excellent services have set the standard high for residential properties. It has a portfolio of varied residential projects across compact homes, gated communities, townships, plotted developments, and villas. It is known for its affordability and excellent construction quality. Some of the best projects by Arun Excello Group are

Casagrand Group

Casagrand Group is a leading real estate developer in Chennai with over 2 decades of legacy. Their diverse portfolio includes gated communities, high-end apartments, and independent villas. With a presence in prime cities like Pune, Coimbatore, Hyderabad, and Bangalore, they have always prioritised quality, commitment to customers, timely deliveries, and innovation. Some of the best projects by Casagrand Group are:

Sobha Group

Sobha Group is a prestigious real estate organisation in South India. Known for its world-class architecture and workmanship, the group has delivered numerous landmark projects with quality, timeliness, and transparency. It has been transforming the skyline of Bangalore, Delhi NCR, Chennai, Kerala, Pune, Coimbatore, and Mysuru. Some of the best projects by Sobha Group are:

Is It Good To Buy Flats In Chennai?

It is ideal to buy flats in Chennai now as it offers a range of housing options with affordability. The graph of property for sale in Chennai has been on an upward trend for a decade now. The sustained demand and changing preferences for premium homes are driving the growth of Chennai real estate. The infrastructure development and booming commerce ensure notable returns on investment. 

Which New Projects Offer 1 BHK Flat For Sale In Chennai?

The top projects comprising 1 BHK flat for sale in Chennai are Brigade Residences Nebula, Mahindra Happinest at Mahindra World City, and Urbanrise The World Of Joy. 

Which New Projects Offer 2 BHK Flat In Chennai?

The top new projects comprising 2 BHK flat for sale in Chennai are TVS Emerald Elements, Brigade Residences Nebula, Hiranandani Verona, Urbanrise The World Of Joy, Purvankara Lake Vista, Jains Aadhidev, Casagrand Athens, etc.

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