According to Knight Frank India’s latest report, Chennai’s real estate market showed strong momentum in the first quarter of 2025, with notable growth in the residential and commercial sectors. The city saw 4,357 residential units sold between January and March, marking a 10% year-on-year (YoY) increase in home sales.

The upswing in demand was accompanied by 4,576 new residential launches—up 5% YoY—highlighting developers’ confidence in market fundamentals. The average residential price climbed 7% YoY to Rs 4,854 per sq ft, indicating solid buyer interest and healthy sentiment.

“Chennai’s real estate market has demonstrated steady momentum in Q1 2025, setting a positive tone for the rest of the year,” said Srinivas Anikipatti, Executive Director, Tamil Nadu and Kerala at Knight Frank India. “Stable demand and rising property values indicate a resilient market supported by infrastructure development and an expanding economic base,” he added.

The mid-segment housing market, with ticket sizes ranging from Rs 5–10 million, emerged as the most active, accounting for 1,907 units sold and posting a 5% YoY growth. This segment continues to attract homebuyers seeking affordability and long-term value.

On the commercial front, Chennai recorded office space transactions totalling 1.8 million square feet in Q1 2025—a substantial 56% YoY growth. The city also delivered 0.2 million sq ft of new office supply during the quarter, helping meet the rising demand from occupiers.

Average transacted rentals in the office segment grew by 3% YoY, reaching Rs 69.2 per sq ft per month. This moderate price rise reflects consistent interest from tenants, especially in high-demand submarkets.

Global Capability Centres (GCCs) remained the top occupiers, taking up 0.9 million sq ft of space, while the flex space segment showed continued strength with 0.54 million sq ft of leasing activity. The report suggests this shift toward agile workspaces is gaining traction as firms seek flexible, scalable, and cost-effective solutions in the evolving work environment.

Overall, Q1 2025 has set an optimistic tone for Chennai’s real estate market. With consistent demand, rising values, and strong leasing activity, the city attracts homebuyers and businesses looking for stable investments and long-term growth.