Chennai real estate sees 16% price surge amid sales, launches improving in 2024: PropTiger report

The average cost of property in this southern housing market has risen significantly in the past half-a-decade, so much so that real estate here is slightly more expensive than Hyderabad, data show.

March 6th, 2025: Key performance indicators show Chennai’s housing market is poised to touch greater heights in 2025 after having achieved all-round growth last year.

According to a recent report by PropTiger.com, a leading digital real estate transaction and advisory platform, property prices in the Tamil Nadu capital increased 16% in the past one year as demand for quality housing picked up. This surge in average pricing reflects rising input costs, including land, construction materials and labour as well as sustained demand in key micro-markets.

Average cost of property in this southern housing market has risen significantly in the past half-a-decade, making real estate in Chennai slightly more expensive than Hyderabad. Average cost of property in Chennai stood at Rs 7,173 per square foot (psf) at the end of 2024. In Hyderabad, a buyer has to pay an average cost of Rs 7,000 psf, data available with the Gurgaon headquartered company show.

According to the report titled 'Real Insight: Residential Annual Round-up 2024', home sales in Chennai, a city that has emerged as the epicentre of India’s booming senior living housing sector, increased 8% in 2024 when compared to 2023 even as new supply rose 11% in the same period. Mid-segment continues to drive demand in this housing market, with properties worth up to INR 75 lakh claiming 52% share in overall demand in 2024.  On the other hand, 2BHK homes are the preferred configuration among homebuyers, the report adds.

“Unlike most cities covered in our analysis, growth in Chennai might have been somewhat more modest in the past, but the city has surely come a long way in the past five years. For instance, the fact that the Chennai Metropolitan Development Authority is planning infrastructure development along the 62-km Outer Ring Road to support an anticipated 80% population increase in the corridor is indicative how buyer perception is gradually changing for this housing market,” says Dhruv Agarwala, Group CEO, Housing.com & PropTiger.com.

Growth-promoting government policies and infrastructure upgrades have stoked consumer confidence prompting Grade-A developers to launch new projects here. All in all, the city is poised for better growth in 2025 as buyer preference changes in favour of cities with better liveability, Agarwala adds.