Chennai Housing Market Soars - Registers 7,412 Units in Q1 2025

In 2025, the Chennai residential real estate market got off to a good start. In Q1 2025, there were 8,042 residential units registered in Chennai, an 88 percent increase over Q4 2024 (4,286 units) and an 11 percent increase over Q1 2024 (7,218 units). 92 percent of these registrations were made by CREDAI Chennai members, which increased from 6,346 in Q1 2024 to 7,412 in Q1 2025, a 17 percent year-over-year rise, according to CREDAI Chennai

The pace of sales stayed consistent, as 3,783 units were sold in Q1 2025, up 27 percent year over year and 7 percent quarter over quarter from 2,983 units sold in Q1 2024.

A more discerning customer base that prioritizes quality and on-time delivery is reflected in the preference for projects that are almost finished or ready for occupancy. The Central Government's updated income tax bands and the recent repo rate decreases have further bolstered buyer enthusiasm, especially among first-time homebuyers.

With 61 new residential projects filed in Chennai throughout the quarter, project registration activity stayed steady. Compared to the 78 projects reported in Q1 2024, this represented a minor moderation.

In Tamil Nadu, the number of project registrations for structures and layouts increased significantly each month, reaching 1,436 in Q1 2025.

31 percent of all project registrations and 56 percent of all unit registrations in the city were in the south suburbs. Improved infrastructure, the advancement of Metro Phase II, and interest in new routes like Parandur, Minjur, Chengalpattu, and Sriperumbudur were the main causes of the spike. In the next quarters, these sites should continue to gain traction as integrated township models.

A Mohamed Ali, President of CREDAI Chennai, said, "The Government's focus on inclusive urban development through schemes and new infrastructure investments in suburban corridors is enhancing liveability and making homeownership more accessible to a wider section of the population.  We are seeing measured optimism in the market. Developers are taking a calibrated approach to new launches while strengthening regulatory compliance. The result is a more mature, balanced housing sector ready to scale with upcoming urbanisation."

Aslam P Mohamed, Secretary, CREDAI Chennai, said, "The recent reductions in the repo rate and the Central Government's revised income tax slabs will further support buyer sentiment, particularly among first-time home seekers. We expect this momentum to continue into the next quarter, especially with infrastructure-led locations attracting renewed investor and end-user interest."