Chennai Real Estate 2025: CREDAI Drives Growth, Buyer Optimism Rises

A Quarter of Growth, Confidence, and Changing Preferences

Chennai’s real estate sector is scripting a remarkable comeback in 2025, with fresh momentum and optimism radiating from the latest CREDAI Chennai report. In the first quarter alone, the city registered 8,042 residential units-an 11% increase from the same period last year, signaling renewed confidence among homebuyers and developers alike.

What makes this surge even more impressive is the dominant role played by CREDAI Chennai members, who accounted for 92% of these registrations. Their numbers rose from 6,346 in Q1 2024 to 7,412 in Q1 2025, marking a robust 17% year-on-year growth. This performance underscores the association’s reputation for quality and trust in the city’s evolving property landscape.

Steady Sales and Shifting Buyer Preferences

Sales momentum held steady, with 3,783 units sold in Q1 2025-a 7% increase quarter-on-quarter and a striking 27% jump year-on-year from Q1 2024. CREDAI developers contributed to 80% of these sales, reflecting the growing preference for established brands.

A notable trend is the rising demand for ready-to-occupy and near-completion projects, as buyers increasingly prioritize quality, timely delivery, and regulatory compliance. This shift points to a more discerning and informed homebuyer base in Chennai.

Policy Tailwinds and New Launches

The recent reduction in repo rates and the Central government’s revised income tax slabs have further buoyed buyer sentiment, especially among first-time home seekers. These policy moves are making homeownership more accessible and attractive, supporting the sustained sales momentum.

While 61 new residential projects were registered in Q1 2025-a slight moderation from 78 in the same period last year-the market remains vibrant, with developers adopting a calibrated approach to new launches.

Inventory and Infrastructure: Building for Tomorrow

As of March 2025, unsold inventory in completed projects stood at a stable 7,872 units, with CREDAI members holding 5,937 of these. This stability reflects a healthy balance between new supply and demand, avoiding the pitfalls of oversupply.

The government’s ongoing investment in infrastructure-especially in suburban and emerging corridors-is transforming Chennai’s livability and expanding the dream of homeownership to a wider population. Locations like North Chennai are fast emerging as new growth hotspots, thanks to improved connectivity and integrated development initiatives.

CREDAI’s Vision: Measured Optimism

A. Mohamed Ali, President of CREDAI Chennai, affirms this positive outlook, noting that inclusive urban development and infrastructure investments are making homeownership more attainable. Asalm P. Mohamed, Secretary of CREDAI Chennai, highlights that recent policy changes will continue to support buyer sentiment, with investor and end-user interest expected to remain strong in the coming quarters.

Developers are responding with a measured approach to new launches and a renewed focus on regulatory compliance, ensuring that Chennai’s real estate market remains robust and resilient.