The residential real estate market in the city and its neighbourhood has commenced 2025 on a positive note with a strong recovery and increasing buyer confidence, a report by the industry body CREDAI said.
Significant increases in registrations, consistent sales of residential units, and a resilient housing market have been observed during the January-March 2025 period, as noted in the study conducted by the Confederation of Real Estate Developers’ Associations of India (CREDAI), Chennai, released on Sunday. Projects that are nearing completion or are ready for occupancy remain the preferred choice among buyers.
The recent decrease in the repo rate by the Reserve Bank of India, along with the Central government’s updated income tax brackets, has further bolstered buyer sentiment, especially among first-time purchasers, the report indicated. Sales of residential units rose by 7 percent quarter-on-quarter to 3,783 units during this three-month period, reflecting a 27 percent increase year-on-year.
The southern suburbs accounted for the majority of project registrations, driven by enhanced infrastructure and the Metro Phase II project, among other factors. Locations such as Parandur, where a proposed airport is anticipated, as well as Minjur, Chengalpattu, and Sriperumbudur, have also become highly favored by buyers. These areas are expected to maintain their momentum in the upcoming quarters, the report concluded.
A Mohamed Ali, President of CREDAI Chennai, stated that the Government’s emphasis on inclusive urban development through various schemes and new infrastructure investments in suburban areas is improving livability and making homeownership more attainable for a broader segment of the population. He noted, ‘We are observing a cautious optimism in the market.
Developers are adopting a measured strategy for new launches while enhancing regulatory compliance. This has resulted in a more mature and balanced housing sector, poised for growth with the forthcoming urbanization.’ Furthermore, the total number of residential unit registrations in Tamil Nadu reached 9,480 during the January-March 2025 quarter, reflecting a 24 percent increase compared to the previous quarter. These figures underscore the overall market recovery, driven by strong engagement from established developers and a favorable policy landscape, according to the study.
CREDAI Chennai Secretary Aslam Packeer Mohamed added, ‘We anticipate this positive trend to continue into the next quarter, particularly as infrastructure-driven locations draw renewed interest from both investors and end-users.’
