25 per cent growth in Chennai flat sales in 2025

CHENNAI GROWTH

The Confederation of Real Estate Developers’ Associations of India (CREDAI) has projected up to 25 per cent growth in apartment sales in the city in 2025 with new project launches anticipated to grow by up to 20 per cent.

“As the year comes to a close, the Chennai residential market is poised for robust activity. The festive season is expected to further strengthen buyer sentiment, leading to a significant rise in sales and launches. This anticipated momentum highlights the market’s ability to rebound and conclude the year on a positive note,” said A Mohamed Ali, president of CREDAI Chennai.

Predicting that the Q4 performance will increase by 15%-20% while new project launches are likely to grow by 10%-15% compared to Q3, the residential market is expected to build on this momentum, with sales growth projected between 20%-25% in 2025.

“Also, new project launches are anticipated to grow by 15%-20%, particularly in emerging regions, which are set to benefit from enhanced infrastructure and urban expansion.

In 2024, South Chennai was the top choice for residential sales, with areas like Medavakkam, Tambaram, Velachery, and Porur seeing strong demand due to improved infrastructure, CREDAI observed.

Demand in North Chennai too is gaining traction, especially in areas like Manali and Korukkupet, thanks to new development projects

In Central Chennai, neighbourhoods like T Nagar, Nungambakkam, and Chetpet, known for lifestyle hotspots and proximity to commercial hubs continue to attract buyers while areas like Ambattur and Avadi in western Chennai are also being preferred now due to better connectivity and affordable housing options.

REASONS FOR DEVELOPING

Chennai has been one of the top most investment destinations when it comes to real estate. The Chennai residential market registered a 21% year-on-year (YoY) growth in sales during the first half of 2022. Chennai residential market has been a balancing act between price and demand. While being a price-sensitive market, with broadly stable values, sales volumes were maintained in the last 24 months. Chennai real estate market is vast and wide-spread. Here we have suggested a few hot pockets for real estate in Chennai.

⦁ IT Corridor
The first phase of 20-km stretch from Madhya Kailash to Siruseri is now buzzing with activity. The influx of techies has boosted the prolific growth of housing and retail outlets along the corridors.

The World Trade Centre at Perungudi is an iconic location which has boosted the development in and around the area. The government has initiated the connectivity levels. The elevated metro line on OMR will run parallel to the proposed IT expressway. The phase 2 involves a total distance of 118.9 km and the corridor from Madhavaram to Siruseri SIPCOT involves a distance of 45.8 km. The deadline fixed for the completion of the project is 2025 and the total outlay is Rs 61,843 crore.

Land prices soared high and the existing ones are quoted at astronomical levels making it unviable for developers to undertake residential or commercial projects. The development on the IT corridor has pushed the land prices beyond to phase 2 of the corridor which starts from Siruseri and goes upto Mahabalipuram. Areas like Padur and Thaiyur are seeing the land prices moving north and the availability are also shrinking with residential and commercial development.

The 18-km stretch along the Kelambakkam-Vandalur Road and Chennai Outer Ring Road has a large number of plotted developments. Plots are available in several adjoining localities such as Kandigai, Mambakkam, Kolapakkam, Varadarajapuram, Nallambakkam and Melakottaiyur.  Land prices are up but limited availability made the developers to shun layout projects on the highway. While layout projects could be seen off the highway, the upcoming bus stand at Kilambakkam has boosted the land values further on this highway.

The phase-2 corridor work is underway with the road widening in select areas beyond Padur. Among the major developments specific mention should be made about IIT Madras’ expansion for research work in Thaiyur. A few developers were able to capitalise through land development projects.

The new town development plan of Chengalpattu is proposed to encompass around 48 villages around the central core of Chengalpattu town, bounded by Palar river to the west, GST Road and Mahindra City to the north, several non-contiguous hillocks to the east, and a new administrative headquarters to the south.

This will provide a comprehensive approach to redevelop the existing haphazard developments within the town centre, tap into the potential of upcoming residential, commercial, and industrial, and institutional activities along the GST corridor, Chengalpattu-Thiruporur corridor, and Chengalpattu-Walajabad corridor, reports New Indian Express.

Land prices are already up by 50-100 per cent on Guduvanchery-Tiruporur highway with plotted development projects under various stages of development.

According to industry sources, land development projects involving over 500 acres in and around Sriperumbudur have already been sold as developed plots over the years including unapproved plots.

Even as Bengaluru and Hyderabad remain largely dependent on the IT-ITeS sector, Chennai’s economy is multi-faceted deriving impetus and demand from diverse sectors such as manufacturing, auto, and BFSI sectors. Moreover, the city has also emerged as an electronic hardware hub with more than 20 electronic hardware technology parks located in Sriperumbudur, Oragadam and Mahindra World City. Chennai’s future growth is likely to be augmented by other sectors such as aerospace with a massive aerospace park spanning 250 acres coming up at Sriperumbudur.

A number of leading corporates have announced mega projects which will transform the skyline of the area in the coming years. Ponneri is one of the three smart cities on the Chennai-Bengaluru industrial corridor. The Rs925-crore industrial park being setup by Japanese major Sumitomo in association with Mahindra group is a significant development. Phase 1 involves development of 107 hectares of land which will house 20-30 tenant companies. Ascendas has purchased 80 acres near Periapalayam for logistics development.

 

CREDAI projects 25% growth in Chennai apartment sales by 2025, with new launches up by 20%. South Chennai leads in Medavakkam and Velachery, while North Chennai sees growth in Manali. Central and West Chennai attract buyers for affordability and connectivity. Developers urge faster approvals and better utility support to sustain growth.