Chennai's real estate boom spurs new urban growth axis

Housing sales rose by 10% in the first quarter, thanks to MPR and PTR commercial corridors. At 2.6 mn sq.ft, nearly 10% of India's total activity in green-certified office spaces happened in Chennai

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CHENNAI'S residential real estate market has kicked off 2025 with notable momentum, as both buyers and developers bet on the city's evolving infrastructure and commercial promise. Housing sales rose by 10% year-on-year to 4,357 units in the first quarter, with new supply climbing 5% to 4,576 units, as per data shared with TNIE.

The south Indian metropolis is emerging as a balanced urban growth centre, where end-user demand, policy support, and investor interest are beginning to align.

"The market has maintained a steady rhythm in the first quarter, and the momentum is likely to continue through the year," said Srinivas Anikipatti, Executive Director (Tamil Nadu & Kerala) at Knight Frank India. He cited robust commercial leasing, particularly from global capability centres (GCCs) and co-working operators, as a leading indicator of the city's rising appeal as a business hub. Indeed, office activity has paralleled the housing market's performance. Chennai registered 2.6 million sq feet of office leasing in Q1, contributing 10% of India's total leasing activity in green-certified office spaces, as per CBRE.

CORRIDORS OF CHANGE

Mount Poonamallee Road (MPR) and Pallavaram-Thoraipakkam Road (PTR) have emerged as dual engines of growth, transforming into key commercial corridors. In 2024, these micro markets accounted for 6,000 residential unit launches-about 30% of the city's total.