Chennai Residential Property Sales Reach Highest Nine - Month Level Since 2018

Chennai recorded 13,871 residential property sales between January and September 2026, with growing demand for premium homes and a 5.9% rise in average property prices, according to Knight Frank India.

Chennai’s residential property market continued to show resilience in the first nine months of 2026, recording its highest sales for the January–September period since 2018. According to Knight Frank India, the city registered 13,871 residential property sales during this period, a 2% increase from 13,552 units sold in the corresponding period last year.

While housing sales increased, developers adopted a more measured approach to new supply. Residential launches fell 7% year-on-year to 14,639 units, compared with 15,793 units during January–September 2025.

Residential Sales Remain Steady Throughout 2026

Chennai recorded 4,763 residential property sales in the first quarter of 2026, followed by 4,435 units in the second quarter and 4,673 units in the third quarter.

New launches stood at 5,112 units in the first quarter, 4,476 units in the second quarter and 5,051 units in the third quarter.

Nationally, residential sales across India’s eight major markets remained largely stable at 2,58,238 units during the first nine months of 2026. New launches, however, increased by 4% year-on-year to 2,79,899 units.

Premium Housing Gains Ground in Chennai

Demand for higher-value homes emerged as a key trend in Chennai’s residential market. Sales in the ₹2 crore, ₹5 crore segment surged 54% year-on-year to 1,709 units, while the ₹1 crore , ₹2 crore category grew 17% to 3,808 units.

The upward trend extended to more expensive properties, with sales in the ₹5 crore–₹10 crore and ₹10 crore ,₹20 crore segments increasing by 17% and 22%, respectively.

Overall, homes priced above ₹1 crore accounted for 42% of Chennai’s residential sales, up from 34% in the same period last year. Sales in this category increased by 26%, highlighting the growing contribution of premium housing to the market.

In comparison, demand for homes priced below ₹50 lakh weakened, with sales falling 46% to 1,542 units.

The ₹50 lakh , ₹1 crore segment remained Chennai’s largest housing category, recording 6,506 sales and accounting for 47% of the total. Sales in this segment increased by 7% year-on-year.

Chennai Property Prices Rise 5.9%

The weighted average residential property price in Chennai reached ₹7,715 per square foot in the third quarter of 2026, marking a 5.9% increase from the corresponding period last year.

The price rise comes alongside stronger sales in premium housing categories, reflecting the growing share of higher-value properties in the city’s residential market.

Unsold Housing Inventory Remains Under Control

Chennai recorded a quarters-to-sell (QTS) ratio of 4.4 in Q3 2026, the second-lowest among India’s eight major residential markets. The figure was comfortably below the eight-city average of 6.1 quarters.

QTS measures the estimated time required to sell unsold residential inventory at the prevailing sales rate. Chennai’s ratio has remained between 4.2 and 4.5 quarters since early 2025, pointing to consistent absorption of available housing stock.

Employment Growth Supports Housing Demand

Joseph Thilak, Executive Director – Occupier Strategy & Solutions and Head of Data Center Business (India) at Knight Frank India, said Chennai had recorded its highest residential sales for the first nine months of any year since 2018.

He also highlighted the steady shift in demand towards larger homes. According to him, Chennai’s stable employment base, supported by global capability centres and the manufacturing sector, is expected to sustain housing demand through the festive season.

With residential sales holding firm, premium homes gaining a larger share and unsold inventory being absorbed at a steady pace, Chennai’s housing market continues to show stability in 2026.