Chennai Housing & Commercial Property Market Sees Strong Growth in 2025​

Chennai’s real estate sector is witnessing a remarkable surge, as the Chennai Housing & Commercial Property Market Sees Strong Growth in 2025. According to a recent report by Anarock, the city’s housing supply reached 19,675 units in the first nine months of 2025, a 15% increase from last year. Housing sales also saw a significant rise, totaling 15,720 units, reflecting a market primarily driven by end-users rather than speculative buyers.

The report, titled “Real Estate and Infrastructure Driving Growth in Tamil Nadu”, was released during the Real Estate and Infrastructure Summit in Chennai. It highlighted South Chennai as the dominant market region, contributing nearly three-quarters of all new launches this year. Developers are particularly active along the OMR and GST corridors, delivering new residential projects to meet growing demand.

Anuj Puri, Chairman and Founder of Anarock Group, noted that property prices have risen by 38% over the past five years, currently standing at Rs 7,010 per square foot. Despite this increase, absorption rates remain strong, leaving Chennai with the second-lowest unsold stock among major metros, signaling a healthy and sustainable market.

Commercial Property Market Growth

The commercial property sector in Chennai is also thriving. Net absorption reached 4.6 million square feet in the first nine months of 2025, already matching last year’s full-year performance and on track to reach a seven-year high. This growth is largely driven by the proliferation of Global Capability Centers (GCCs) in Tamil Nadu, with Chennai hosting 10% of India’s total GCC footprint. Coimbatore has also emerged as a preferred Tier-II destination for new GCC setups.

Challenges Facing the Market

Despite robust growth, the sector faces challenges. Rising raw material costs have impacted the pricing of affordable homes, while industry leaders emphasize the need for streamlined project approvals. Regulatory and administrative reforms could further strengthen the market’s growth trajectory.

Economic Outlook

Shiv Das Meena, Chairman of the Tamil Nadu Real Estate Regulatory Authority (TNRERA), highlighted Tamil Nadu’s impressive GDP growth of 11.19%, well above the national average of 6.5%. This strong economic performance is expected to fuel residential and commercial property demand in the coming years.

Conclusion

The Chennai Housing & Commercial Property Market Sees Strong Growth, driven by increasing residential demand, thriving commercial absorption, and a supportive economic environment. While challenges like rising construction costs and regulatory hurdles exist, the market outlook remains positive, positioning Chennai as a key real estate hub in India.