Chennai records 4,357 home sales in Q1 2025, says Knight Frank India

CHENNAI: The city’s residential market recorded 10 per cent YoY growth in sales, with 4,357 units sold in Q1 2025, as per the latest report of Knight Frank India.

New launches also saw an uptick, with 4,576 units introduced, reflecting 5 per cent YoY growth.

The average weighted residential price increased by 7 per cent YoY, reaching Rs 4,854 per sq ft, underscoring rising demand and healthy market sentiment.

The segment with ticket size of Rs 5-10 mn dominated the residential real estate market of Chennai in Q1 2025 with 1,907 units sold, recording 5 per cent YoY growth.

Srinivas Anikipatti, ED, Tamil Nadu and Kerala, said, “Chennai’s real estate market has demonstrated steady momentum in Q1 2025, setting a positive tone for the rest of the year.”

“On the residential front, stable demand and rising property values indicate a resilient market supported by infrastructure development and an expanding economic base. This sustained growth across asset classes reinforces investor confidence in Chennai’s long-term real estate potential,” he added.

In Q1 2025, Chennai’s commercial real estate sector recorded transactions totalling 1.8 million square feet (mn sq ft), marking an impressive 56 per cent year-on-year (YoY) growth, India Real Estate: Office and Residential (January - March 2025) Q1 2025 report said.

The city also witnessed the completion of 0.2 mn sq ft of new office space during the quarter. Average transacted rents in the commercial segment increased by 3 per cent YoY, reaching Rs 69.2 per sq ft per month, reflecting a steady rise in occupier demand.

Global Capability Centres (GCCs) remained the key demand drivers in Chennai’s office market, accounting for 0.9 mn sq ft of transactions. Flex spaces followed closely, recording 0.54 mn sq ft of leasing activity, signalling a growing preference for agile and cost-efficient workspaces.