Chennai Registers 27% Growth in Residential Sales in Q1 2025: CREDAI

Chennai residential realty market started 2025 on a robust note with a 27% year-over-year increase in home sales during the quarter that ended March, according to a new CREDAI Chennai report.

Confederation of Real Estate Developers’ Associations of India (CREDAI) noted a sharp pickup in consumer sentiment, driven by recent policy developments the Reserve Bank of India’s cut in repo rate and the Central government’s introduction of new income tax slabs. These have particularly improved confidence levels among first-time homebuyers, the report added.

Residential sales increased 7% quarter-on-quarter to 3,783 units in Chennai. Properties that were under completion or ready to occupy continued to be the preferred choice of buyers. The state-wide scenario also promised well, with overall residential registrations in Tamil Nadu up 24% from the last quarter at 9,480 units.

The southern suburbs led the charge in new project registrations, spurred by infrastructure improvement and the current Metro Phase II project. The emerging areas of Parandur — the location of a proposed airport — Minjur, Chengalpattu, and Sriperumbudur are experiencing increasing buyer interest. “These areas are likely to see pace in the future quarters,” the report added.

CREDAI Chennai President A. Mohamed Ali credited the upswing to the government’s emphasis on inclusive urban development. “New investment in suburban infrastructure is enhancing liveability and making home-buying affordable,” he said.

He further stated that developers are registering “measured optimism” by moderating new launches and anchoring regulatory compliance, helping to have a stable and balanced housing market.

CREDAI Chennai Secretary Aslam Packeer Mohamed concurred, adding the run is set to continue, particularly in the infrastructure-driven places that are drawing end-users as well as investors.

The report indicates that with sustained policy support and the development of infrastructure, Chennai’s housing market is set for continued expansion in the subsequent quarters.