Key performance indicators show Chennai’s housing market is poised to touch greater heights in 2025 after having achieved all-round growth last year. According to PropTiger.com, property prices in the Tamil Nadu capital increased 16 per cent in the past year as demand for quality housing increased. This surge in average pricing reflects rising input costs, including land, construction materials and labour as well as sustained demand in key micro-markets.
The average cost of property in this southern housing market has risen significantly in the past half a decade, making real estate in Chennai slightly more expensive than in Hyderabad. The average cost of property in Chennai stood at Rs 7,173 per square foot (psf) at the end of 2024. In Hyderabad, a buyer has to pay an average cost of Rs 7,000 psf, according to the data.
According to the report, Chennai has emerged as the epicentre of India’s booming senior living housing sector, increased by 8 per cent in 2024 when compared to 2023, even as new supply rose 11per cent in the same period. Mid-segment continues to drive demand in this housing market, with properties worth up to Rs 75 lakh claiming 52 per cent share in overall demand in 2024. On the other hand, 2BHK homes are the preferred configuration among homebuyers.
Growth-promoting government policies and infrastructure upgrades have stoked consumer confidence prompting Grade-A developers to launch new projects here. All in all, the city is poised for better growth in 2025 as buyer preference changes in favour of cities with better liveability.
