Chennai’s residential market recorded 10% year on year growth

Average rents in the commercial segment increased by 3% year on year, reaching ₹69.2 per sq.ft per month, reflecting a rise in occupier demand. File photo
| Photo Credit: S.R. RAGHUNATHAN

Chennai’s residential market recorded a 10% year-on-year growth in sales, with 4,357 units sold during the first quarter of 2025. New launches also saw an uptick, with 4,576 units introduced, reflecting a 5% year-on-year growth, according to Knight Frank India.

In its latest report, ‘India Real Estate: Office and Residential (January-March 2025) Q1 2025’, Knight Frank India also pointed out that the average weighted residential price increased by 7% year on year, reaching ₹4,854 per sq.ft.

During the first quarter of this year, Chennai’s commercial real estate sector recorded transactions totalling 1.8 million sq.ft (mn sq.ft), marking a 56% year-on-year growth. The city also witnessed the completion of 0.2 mn sq.ft of new office spaces during the quarter. Average rents in the commercial segment increased by 3% year on year, reaching ₹69.2 per sq.ft per month, reflecting a steady rise in occupier demand. Global capability centres (GCCs) remained the key demand drivers in the city’s office market, accounting for 0.9 mn sq.ft of transactions. Flex spaces followed closely, recording 0.54 mn sq.ft of leasing activity.

Srinivas Anikipatti, executive director-Tamil Nadu and Kerala, Knight Frank India, said: “Chennai’s real estate market has demonstrated steady momentum in Q1 2025, setting a positive tone for the rest of the year. The commercial sector’s strong leasing activity, particularly from GCCs and flex space operators, reflects the city’s growing appeal as a strategic business hub.”

He added, “On the residential front, stable demand and rising property values indicate a resilient market supported by infrastructure development and an expanding economic base.”