The Chennai residential real estate market opened in 2025 on a positive note. The number of residential units registered in Chennai during Q1 2025 stood at 8,042, reflecting an 88% increase over Q4 2024 (4,286 units) and an 11% rise over the same quarter in 2024 (7,218 units). CREDAI Chennai members accounted for 92% of these registrations, up from 6,346 in Q1 2024 to 7,412 in Q1 2025, a 17% year-on-year increase, informs CREDAI Chennai
Sales momentum remained steady, with 3,783 units sold in Q1 2025, up 7% quarter-on-quarter and 27% year-on-year from 2,983 units sold in Q1 2024. Projects nearing completion or ready-to-occupy were preferred, reflecting an increasingly discerning buyer base focused on quality and timely delivery. The recent reductions in the repo rate and the Central Government's revised income tax slabs have further supported buyer sentiment, particularly among first-time home seekers.
Project registration activity remained stable, with 61 new residential projects registered in Chennai during the quarter. This marked a slight moderation from the 78 projects recorded in Q1 2024.
Across Tamil Nadu, total project registrations spanning buildings and layouts rose steadily month-on-month, with Q1 2025 seeing 1,436 registrations in total.
The south suburbs accounted for 31% of total project registrations and 56% of all unit registrations in the city. The spike was driven by improved infrastructure, Metro Phase II progress, and interest in emerging corridors, including Parandur, Minjur, Chengalpattu, and Sriperumbudur. These locations are expected to witness continued momentum in upcoming quarters as integrated township models and decentralised planning gain traction.
As of March 2025, unsold residential inventory in completed projects stood at 7,872 units, reflecting stable levels compared to the previous quarter. The steady inventory numbers highlight efficient supply alignment, especially in a climate where end-user demand continues to lead the market.
The market also benefited from key Government initiatives, including the announcement of Master Plans for 136 cities, the Chennai Shoreline Revitalisation Project launch, and the development of satellite towns. These moves will spur real estate activity beyond the core city and support long-term housing demand
A Mohamed Ali, President of CREDAI Chennai, said, "The Government's focus on inclusive urban development through schemes and new infrastructure investments in suburban corridors is enhancing liveability and making homeownership more accessible to a wider section of the population. We are seeing measured optimism in the market. Developers are taking a calibrated approach to new launches while strengthening regulatory compliance. The result is a more mature, balanced housing sector ready to scale with upcoming urbanisation."
Asalm P Mohamed, Secretary, CREDAI Chennai, said, "The recent reductions in the repo rate and the Central Government's revised income tax slabs will further support buyer sentiment, particularly among first-time home seekers. We expect this momentum to continue into the next quarter, especially with infrastructure-led locations attracting renewed investor and end-user interest."
