Chennai’s residential market stable during first half of 2026, says report
Chennai’s residential market remained stable during the first half of 2026, despite Tamil Nadu Assembly elections, with housing sales growing by 3% year on year
Chennai’s residential market remained stable during the first half of 2026, despite Tamil Nadu Assembly elections, with housing sales growing by 3% year on year (YoY) to 9,198 units, while launches dipped moderately by 0.3% YoY at 9,588 units. Average residential prices appreciated by 5% YoY to ₹7,555 per sq.ft, according to Knight Frank India’s latest report, India Real Estate: Residential and Office H1 2026 (January–June 2026). Homes priced between ₹5 million and ₹10 million remained the largest contributor to residential sales, accounting for 47% of total transactions. The ₹10 million to ₹20 million segment increased its share to 27%, while homes priced between ₹20 million and ₹50 million accounted for 12% of overall sales, reflecting rising buyer preference for larger homes.
The affordable housing segment priced below ₹5 million witnessed its share decline sharply from 22% in H1 2025 to 12% in H1 2026, highlighting the impact of affordability pressures, rising input costs and constrained supply. According to the report, average residential prices in Chennai increased 5% YoY to ₹7,555 per sq.ft. Perambur registered the strongest appreciation with a 35% YoY increase, bringing the average prices in the range of ₹10,563-₹11,158 sq.ft per month, driven by infrastructure upgrades and enhanced metro connectivity. Perumbakkam recorded a 20% YoY rise owing to its proximity to the OMR employment corridor and upcoming Metro Phase II connectivity, while Mogappair witnessed 13% YoY appreciation, supported by strong end-user demand and established social infrastructure.
Joseph Thilak, Director – Occupier Strategy and Solutions (Hyderabad & Chennai), Knight Frank India, said, “We are also witnessing a clear evolution in buyer preferences, with demand increasingly shifting towards mid and premium housing segments as consumers seek larger homes, better amenities and improved lifestyles. Looking ahead, continued investments in manufacturing, Global Capability Centres (GCC), Metro Rail connectivity and major infrastructure projects such as Chennai Metro Phase II are expected to further strengthen housing demand and reinforce Chennai’s position as one of India’s most stable residential markets.” Chennai’s office market continued to demonstrate resilience in the first half of 2026, recording 3.6 million sq.ft. of leasing activity. While transaction volumes fell by 28% YoY compared with the exceptionally strong H1 2025, leasing activity remained among the highest ever recorded for a first-half period.
The BriefWire