Chennai, May 1:
The city’s housing market has kicked off 2026 on a strong note, emerging as one of the fastest-growing among major Indian metros, according to a report by Knight Frank India.
Residential sales in Chennai rose to 4,763 units in the first quarter (Q1 2026), marking a 9% increase compared to the same period last year. New project launches also gathered momentum, rising 12% year-on-year to 5,112 units. Property prices registered a steady appreciation of around 6%, reflecting sustained demand in the market.
The report highlights a clear shift in buyer preferences across segments. Demand for affordable housing priced below ₹50 lakh witnessed a sharp decline of 39%. In contrast, mid-range homes priced between ₹50 lakh and ₹1 crore recorded a healthy 19% growth, emerging as the most preferred category among buyers.
Premium housing demand also saw a significant surge, particularly in the ₹2–5 crore segment, which jumped by 52%.
The ₹50 lakh–₹1 crore segment accounted for the highest share of overall sales in Chennai, followed by properties in the ₹1–2 crore bracket. While high-value homes continued to attract interest, their share remained relatively smaller compared to mid-segment housing.
At the national level, however, the housing market showed signs of moderation. Overall sales across the top eight cities declined by 4% year-on-year, with major markets such as Mumbai, Delhi-NCR and Pune reporting a dip.
Meanwhile, Bengaluru and Hyderabad managed to post marginal growth during the same period.
Despite the broader slowdown, demand for premium housing across India remained resilient, signalling a gradual shift in buyer preference towards higher-value properties.
Overall, Chennai’s real estate sector continues to demonstrate resilience, supported by robust demand in mid-range and premium segments, along with stable price growth and increased project activity.