Chennai's Housing Market equips to touch Greater Heights: Hits All-Round Growth

After achieving all-around growth last year, key performance indicators indicate that Chennai's housing market is set to reach even higher heights in 2025. PropTiger.com reports that while demand for high-quality housing grew over the past year, property prices in the Tamil Nadu capital rose by 16%.

This increase in average prices is a result of both sustained demand in important micro markets and growing input costs, such as those for labor, land, and building supplies. Chennai real estate is a little more expensive than Hyderabad real estate since the average price of real estate in this southern housing market has increased dramatically over the last five years.

At the end of 2024, the average price of real estate in Chennai was Rs. 7,173 per square foot (psf). Based on the research, the average cost for a buyer in Hyderabad is Rs. 7,000 per square foot.

The report claims that Chennai has become the epicenter of India's burgeoning senior living housing market, with an 8% growth in 2024 compared to 2023, despite an 11% increase in new supply during the same time frame. Demand in this property market is still driven by the mid-segment, with houses up to Rs. 75 lakh accounting for 52% of total demand in 2024. However, the most popular layout among buyers is a two-bedroom house.

Grade-A developers are starting new projects here as a result of infrastructure improvements and growth-promoting government measures that have increased consumer confidence.

All things considered, the city is expected to grow more in 2025 as consumer preferences shift in favor of more livable places.

 “Unlike most cities covered in our analysis, growth in Chennai might have been somewhat more modest in the past, but the city has surely come a long way in the past five years. For instance, the fact that the Chennai Metropolitan Development Authority is planning infrastructure development along the 62-km Outer Ring Road to support an anticipated 80% population increase in the corridor is indicative of how buyer perception is gradually changing for this housing market,” states Dhruv Agarwala, Group CEO, Housing.com & PropTiger.com.