Chennai housing market eyes 18 per cent increase in sales in 2025
CHENNAI: The citys residential real estate market is set to extend its steady recovery in 2025, with home sales expected to cross 15,000 units an 18% increase over 2024 even as broader macroeconomic uncertainties linger, according to a Confederation of Real Estate Developers Association of India (CREDAI) report. According to Mohamed Ali, president of CREDAI Chennai, a total of 12,942 units were sold last year. Price movements have remained modest, reinforcing Chennais reputation as a relatively end-user-driven market, less prone to speculative swings seen in some other large cities, the CREDAI report quoting him stated. Industry data show that about 26,500 housing units were launched across nearly 250 projects up to October 2025, with full-year launches expected to be almost 20% higher than in 2024. The report states that the sale momentum has remained firm, particularly in south and west Chennai, where infrastructure upgrades and transport connectivity continue to reshape buyer preferences. Corridors along Old Mahabalipuram Road (OMR), GST Road, Porur-Poonamallee Road, and Radial Road have emerged as key demand centres, supported by proximity to employment hubs and expanding metro rail access. The western suburbs, in particular, have seen a pickup in residential interest following progress on the Kuthambakkam bus terminus and Chennai Metro Rails Corridor 4. Looking ahead, CREDAI expects South and West Chennai to remain the citys primary residential growth engines in 2026. At the same time, developers see scope for redevelopment-led growth in Central and North Chennai, provided there is greater regulatory clarity. In particular, clearer guidelines under the Tamil Nadu Apartment Ownership Act could unlock stalled redevelopment projects and attract more buyers to older neighbourhoods.
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