1 month ago
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Chennai’s existent property marketplace showed a mixed show successful the archetypal 4th of 2026, with bureau and residential segments posting steadfast growth, portion the retail assemblage lagged, witnessing a 19% year-on-year (YoY) decline, according to investigation by assorted existent property firms.
Knight Frank India, successful its latest report, India Real Estate: Office and Residential Market (January - March 2026) Q1 2026 noted that Chennai’s bureau marketplace recorded leasing enactment of 1.5 mn sq. ft. successful the archetypal 4th of 2026, portion caller completions stood astatine 0.5 mn sq. ft. Office rentals besides registered an 8% year-on-year increase.
Chennai recorded retail leasing of 0.14 MSF, marking a 19% YoY decline. Main streets continued to predominate demand, accounting for 89% of full leasing, portion malls accounted for the remaining 11%. “On a sectoral basis, manner accounted for the largest stock of mainstreet leasing astatine 40%, followed by section stores and F&B, each contributing 17%. Domestic brands continued to anchor retail leasing activity,” according to Cushman & Wakefield.
Residential market
Data provided by Knight Frank India shows that Chennai’s residential marketplace recorded 4,763 units sold successful Q1 2026, compared to 4,357 units successful Q1 2025, reflecting a 9% YoY growth. New launches stood astatine 5,112 units, compared to 4,576 units successful Q1 2025, registering a 12% YoY increase.
“Chennai’s residential marketplace exhibited a wide displacement successful request crossed summons sizes, with traction moving distant from the affordable conception toward mid and premium housing. The sub-₹5 cardinal conception saw a 39% decline, indicating a comparative moderation successful entry-level demand. Chennai besides bucked the broader inclination successful the mid-segment, with ₹5 – ₹10 cardinal income rising 19% contempt muted show successful astir different cities, underscoring the city’s resilience successful this category,” Knight Frank said.
At the higher end, request remained robust, with the supra ₹10 cardinal segments increasing steadily — peculiarly the ₹20 – ₹50 cardinal bracket, which surged 52% year-on-year — pointing to rising traction successful premium housing.
Saurabh Garg, Cofounder and CBO of NoBroker, said that developers are overwhelmingly betting connected larger homes, with 69% of caller proviso successful the 3BHK and supra category, portion 43% of buyers are really searching for 1 and 2 BHK units creating a widening gap. “If the proviso pipeline doesn’t equilibrium the smaller and much affordable configurations, the metropolis risks a peculiar outcome: booming launches connected paper, but sluggish absorption connected the crushed arsenic the units being built simply don’t lucifer what astir buyers tin spend oregon want,” helium pointed out.
NoBroker besides shared immoderate information which showed that TNUHDB (Tamil Nadu Urban Habitat Development Board) contributed astir 42% of Q1 supply, including a 1,500-unit affordable strategy successful Tondiarpet and a 702-unit task successful Mylapore. Private proviso was led by L&T Realty (802 units, Manapakkam), Ramaniyam (488 units, Nerkundram), and Brigade (284 units, Velachery).
