Chennai Home Sales Likely to See Steady Growth in FY27: ICRA
Chennai’s housing market is expected to grow at a steady, measured pace in the coming years. According to a report by ICRA, residential sales in the city could rise by around 2–5% in FY2027.
This growth is largely being supported by genuine homebuyers rather than investors, along with a steady flow of new project launches. The market is also benefiting from comfortable inventory levels, which means there are enough homes available without oversupply.
Before this, FY2026 is expected to see slightly stronger growth of about 5–7%. In fact, the first half of FY2026 already showed good momentum, with sales going up by 17% compared to last year, thanks to a surge in new project launches.
Over the past few years, Chennai’s real estate market has recovered well, especially between FY2021 and FY2024. While demand in the affordable housing segment has slowed a bit, mid-range and premium homes continue to attract strong interest.
Another noticeable shift is in buyer preferences. More people are now choosing larger and better-quality homes. Luxury housing, in particular, has seen a sharp rise and is expected to remain a key driver in the coming years, while the mid-income segment continues to stay stable.
Overall, the outlook for Chennai’s housing market remains positive, with steady demand, ongoing infrastructure improvements, and a balanced supply keeping things on track.
