Chennai Housing Market Registers Steep Q1 Recovery with 88% Rise in Unit Registrations

The residential housing segment in Chennai saw a strong Q1 recovery in 2025 as housing unit registrations accelerated 88% quarter-on-quarter to 8,042 units, according to data released by CREDAI Chennai. This also represented an 11% increase year-on-year, reflecting sustained demand momentum.

CREDAI members played a major role in this surge, registering 92% of all units. They registered 7,412 units in the quarter a 17% increase over the same quarter last year. Sales volumes also picked up healthily, increasing 7% over the last quarter and 27% over Q1 2024, to 3,783 units.

The movement of customer preference towards ready-to-move or nearly complete homes continued unabated, underscoring a conservative yet optimistic consumer attitude.

Analysts attribute the increase to a combination of economic and policy winds. Recent rate cuts by the Reserve Bank of India, combined with new income tax slabs, have raised housing affordability levels especially among first-time homebuyers.

But new launch activities slowed down over the period. Just 61 new residential developments were registered in Q1 2025, from 78 in the corresponding quarter last year. Even though new launches dropped, the market stayed even, with completed project unsold stock remaining at 7,872 units.

The numbers show renewed optimism in the housing market of Chennai, driven by growing affordability, steady supply, and a cautious but aggressive set of buyers. CREDAI Chennai is hopeful that this will be an upward curve for the rest of the year, helped along by a favorable policy landscape and growing end-user demand.