Chennai – Residential Real Estate Overview

The Chennai residential market has been on a recovery path since H2 2020. Sales increased by 3% YoY during H1 2023 to 7,150 units. 

Sales were largely concentrated in the south and west micro-markets, which cumulatively accounted for 89% of the total sales during the period. 

The south micro-market locations along the OMR and GST Roads have continued to garner most homebuyer interest comprising a total share of 64%, while the more affordable locations such as Porur, Valasaravakkam and Poonamalle toward the west accounted for 25% of the total share. 

The mid segment of INR 5-10 mn, as always, constituted the bulk of sales and accounted for 40% during H1 2023 as compared with 44% in H1 2022. The share of INR 10 mn. The need of homebuyers to upgrade their lifestyle by acquiring houses with larger spaces and better amenities has led to the sale of luxury apartmentsDevelopers launched 8,122 units in the first half of 2023, a 7% increase from the same period last year. Locations such as Medavakkam, Navalur (OMR), Siruseri SIPCOT (OMR), Thoraipakkam (OMR) and Pallavaram saw increased development activity during the period. 

Launches were largely concentrated in the southern and western micro-markets, which accounted for 61% and 32% of the total launches respectively during H1 2023