The suburbs of Chennai are driving the growth in high-rise residential buildings. Areas like Kelambakkam, Kundrathur, and Mangadu are becoming popular residential hubs due to the increasing urbanization fueled by industries such as IT, automobiles, and electronics.
The residential market in the city saw a significant launch of approximately 6,000 residential units, a 19% increase from the previous quarter and a 33% increase from the previous year. Locations like Katupakkam, Paranur, and Madambakkam witnessed a strong influx of new units, according to a report by Cushman & Wakefield Research.
According to industry sources, the suburbs are expected to continue seeing robust growth in new launches.
M Murali, Chairman and Managing Director of Shriram Properties Ltd, mentioned that Chennai is experiencing a rise in demand for residential and commercial real estate. The State Government’s efforts to boost industrial growth in the region are driving the demand for residential units.
Bharat M Jain, Director of Arihant Foundations & Housing in Chennai, also noted that the residential market in the city is expanding due to improved infrastructure and a growing urban population.
The increase in new launches, especially in suburbs like Pallavaram and Kelambakkam, highlights the shift towards affordable and well-connected locations.
Developers are focusing more on mid-range projects in the ₹40 lakh to ₹80 lakh range, compared to ultra-luxury projects. The share of affordable housing has decreased, while properties priced between ₹1.5 crore to ₹2.5 crore have seen an increase.
Development in emerging suburban areas of Southern Chennai is on the rise to meet the demand for modern housing solutions. Property values have been increasing across various segments, driven by demand from both end-users and investors.
Absorption in West Chennai has increased, while North Chennai and South Chennai have seen slight fluctuations in demand. The Vandalur to Oragadam road, leading to the automobile cluster, is gaining traction again, with an expected increase in supply in that corridor.
Infrastructure developments like the metro line to Poonamallee and the Fintech City development are boosting prospects for areas like Manapakkam. Overall, the real estate market in Chennai is dynamic and shows promising growth opportunities.
