CHENNAI: CREDAI Chennai (Confederation of Real Estate Developers' Associations of India) expects that south and west Chennai will continue as primary residential growth corridors in 2026, due to Metro Rail expansion and proximity to major employment centres.

“The new Kuthambakkam bus terminus and Chennai Metro Corridor 4 have already led to heightened residential interest in western suburbs. Redevelopment-led growth in Central and North Chennai can gain further momentum with improved clarity from the government on the Tamil Nadu Apartment Ownership Act, which is expected to attract more homebuyers and accelerate redevelopment projects,” Mohamed Ali, president, CREDAI Chennai.

He explained that housing sales in 2025 were expected to cross 15,000 units, registering an 18% increase over 2024, when sales stood at 12,942 units in 2024. Despite broader economic uncertainties, prices saw only marginal adjustments.

In 2025, Chennai witnessed robust growth in project launches alongside steady sales momentum. CREDAI data indicates 26,482 units launched across about 250 projects till October, with full-year launches expected to be nearly 20% higher than 2024. “Strong sales traction has been recorded across South and West Chennai, particularly along OMR, GST Road, Porur–Poonamallee Road, Radial Road, and the emerging western suburbs,” he added.

To further boost affordable housing, CREDAI advocates aligning registration and stamp duty charges for PMAY-U 2.0 dwelling units below 60 sqm with national guidelines. “Recognising compact and studio housing designs as habitable dwelling units, particularly for single-parent households and working women, will further expand access to home ownership,” he opined.

Mohamed further expected RBI repo rate cuts, GST rationalisation on select construction materials, and supportive policy measures to enhance affordability and strengthen buyer sentiment, particularly in the affordable housing segment in 2026.