Recent news indicates a mixed bag for Chennai’s real estate market

Recent news indicates a mixed bag for Chennai’s real estate market. While residential sales and new launches are on the rise, with Chennai’s residential market recording a 10% year-on-year growth, construction material costs are escalating. Additionally, Chennai’s commercial real estate sector is also experiencing growth, with leasing of workspace up 29%.

Residential Market:
Chennai’s residential market saw a 10% year-on-year growth in sales, with 4,357 units sold during the first quarter of 2025. New launches also saw an uptick, with 4,576 units introduced, reflecting a 5% year-on-year growth.

Commercial Market:
Leasing of workspace in Chennai increased by 29% to 33.54 million sq ft between January and June.

Construction Costs:
Soaring construction material costs in Tamil Nadu are posing a threat to market stability.

Government Initiatives:
The government is focusing on land record management digitization and is also planning to reconstruct 28,643 dilapidated flats.

Investments:
HDFC Capital plans to invest $2 billion in the affordable housing segment by the end of 2025, and Capgemini is investing Rs 1,000 crore to set up six lakh sq ft space in Chennai.