Chennai’s residential market is stable during the first half of 2026, the report said

The office market in Chennai continued to show resilience in the first half of 2026, registering 3.6 million sq.ft. leasing activities. | Photo credit: JOTHI RAMALINGAM B

Chennai’s residential market remained stable during the first half of 2026 despite the Tamil Nadu assembly elections, with housing sales up 3% y-o-y (y-o-y) to 9,198 units, while launches fell marginally by 0.3% y-o-y to 9,588 units. Average housing prices rose 5% year-on-year 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 crore and ₹ 10 crore remained the largest contributor to residential property sales, accounting for 47% of total transactions. The ₹10-20 crore segment increased its share to 27%, while houses priced between ₹20 crore and ₹50 crore accounted for 12% of total sales, reflecting buyers’ growing preference for larger homes. The sub-₹5 crore affordable housing segment witnessed a sharp decline in share from 22% in 1H2025 to 12% in 1H2026, underscoring the impact of affordability pressures, rising input costs and limited supply.

According to the report, average housing prices in Chennai increased by 5% year-on-year to ₹7,555 per sq ft. Perambur saw the strongest appreciation with 35% year-on-year growth, bringing average prices in the range of ₹10,563-₹11,158 sq ft per month, driven by infrastructure upgrades and better metro connectivity. Perumbakkam has seen 20% year-on-year growth due to its proximity to the OMR employment corridor and the upcoming Metro Phase II connectivity.

Joseph Thilak, Country 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 the mid-range and premium housing segments as consumers look for bigger homes, better amenities and an improved lifestyle. Looking ahead, continued investment in manufacturing, Global Capability Centers (GCC), large demand Metro Rail projects such as Phai Metro II and housing infrastructure and strengthen Chennai’s position as one of the most stable residential markets in India.”

The office market in Chennai continued to show resilience in the first half of 2026, registering 3.6 million sq.ft. leasing activities. While transaction volumes were down 28% year-on-year compared to an exceptionally strong first half of 2025, leasing activity remained among the highest on record in the first half. “Although leasing activity has moderated from the record levels seen last year, transaction volumes remain among the strongest on record, highlighting the city’s continued attractiveness to both domestic and global occupiers. We see demand expanding beyond the Global Capability Centers (GCC) to include flexible office space and India-focused businesses, creating a more diversified and balanced ecosystem of occupiers,” said Mr. Thilak.

Published – 9 Jul 2026 20:53 IST