Chennai Real Estate Accelerates as City Enters a New Growth Phase
As India marks 78 years of independence, Chennai’s real estate sector is witnessing a strong transformation driven by policy reforms, infrastructure expansion, and rising demand from tech professionals and global capability centres (GCCs). Along with Chennai, cities like Coimbatore and emerging industrial corridors are showing significant potential across residential, commercial, and logistics segments.
Market Snapshot - Q1 2025
- Chennai recorded 1.97 million sq ft of office leasing, with Suburban South and Peripheral South-west contributing 72%.
- Grade A office vacancy dropped to 15.91%, reflecting stable absorption.
- GCCs led demand with 47% of total leasing, marking 23% YoY growth.
- 6,200 new residential units were launched, up 53% quarter-on-quarter, dominated by suburban south corridors.
- High-end and luxury homes accounted for nearly 30% of launches.
- Retail leasing grew to 0.16 million sq ft, a 31% YoY rise.
- Logistics demand stayed strong in the northern and western industrial belts.
Third Master Plan to Reshape Urban Growth
The upcoming CMDA Third Master Plan aims to redefine 1,189 sq km of the metro region through higher FSI, mixed-use zones, metro-focused development, and compact urban clusters. While the proposal promises walkable neighbourhoods and reduced commute times, developers seek clearer guidelines on infrastructure readiness to support denser development.
GCC & IT Corridor Drive Residential Demand
Chennai’s OMR–ECR stretch continues to dominate housing demand, supported by over 250 existing GCCs, projected to reach 450 by 2030. GCCs are expected to lease 3.2 million sq ft in 2025, pushing total office stock beyond 100 million sq ft by 2026. This growth is boosting interest in modern, integrated living spaces preferred by tech-driven homebuyers.
Infrastructure Challenges Persist
Despite ambitious planning, fast-growing hubs like Velachery, Pallikaranai, and Perungudi face pressure on drainage, traffic, and power systems. Experts stress the need for parallel infrastructure upgrades to prevent strain from rapid vertical expansion.
Stamp Duty Shift and Buyer Mood
Tamil Nadu’s new “composite value” system for apartments has made valuations more dynamic but may create uncertainty for buyers. Transaction charges now total 11% (7% stamp duty + 4% registration).
Nevertheless, sentiment remains positive - Chennai registered 8,042 home sales in Q1, up 11% YoY, with strong preference for ready-to-move units and growing NRI interest.
Emerging Investment Hotspots
Areas seeing strong traction for residential and commercial investments include:
Perungalathur – steadily growing residential hub
Perumbakkam – popular for its IT-corridor proximity
Siruseri – balanced commercial–residential growth
Thoraipakkam – strong dual-segment appeal
Chennai’s steady absorption, infrastructure expansion, and policy-driven growth now position it as one of India’s most promising real estate markets heading into 2026.
