Chennai Emerges as India’s Bright Spot in Housing Market Amid 2025 Slowdown

Chennai has emerged as a clear outlier in India’s residential real estate landscape in 2025, recording a robust 15 percent growth in housing sales even as most major cities witnessed a decline. The performance underlines the city’s steady end user driven demand and the growing maturity of its housing market.

According to data shared by ANAROCK Group, Chennai recorded residential sales of around 22,180 housing units during the year. This growth came at a time when overall housing sales across the top seven cities declined by nearly 14 percent, reinforcing Chennai’s position as one of the most resilient property markets in the country.

South Chennai continued to anchor the city’s housing demand, accounting for close to 66 percent of total residential sales in 2025. Micro markets such as Pallavaram, Kelambakkam and Shollinganallur emerged as key contributors, supported by proximity to IT corridors, industrial hubs and improving physical infrastructure. Industry observers noted that sales volumes in South Chennai surpassed the previous year by over 20 percent, reflecting renewed buyer confidence.

On the supply front, Chennai added approximately 27,190 new housing units during 2025, marking an annual increase of about 30 percent. Significantly, nearly 71 percent of the new supply fell within the sub ₹2.5 crore price bracket, highlighting a strong alignment between new launches and genuine housing demand. Developers have largely focused on mid income and upper mid income segments rather than speculative luxury inventory.

Data from CREDAI Chennai indicates that housing sales under RERA registered projects are expected to cross 15,000 units for the year, up sharply from 2024 levels. Strong traction has been reported along OMR, GST Road, Porur Poonamallee Road and Radial Road, driven by metro expansion, improved road connectivity and access to employment centres.

Industry leaders attribute Chennai’s steady performance to its affordability, diverse job base and quality of life. With migration remaining strong and infrastructure projects progressing steadily, the city’s housing market is expected to remain stable and well supported in the medium term.