The Indian housing market saw a significant decline in sales during the April–June quarter of 2025, with a 20% drop in overall housing sales across major cities. Despite this nationwide slump, Chennai emerged as a surprising outlier, experiencing an 11% rise in housing demand. This positive shift in the city’s real estate market is primarily attributed to the growing influence of Global Capability Centres (GCCs), which have spurred both office space demand and a parallel surge in residential sales. This blog post delves into why Chennai’s housing sector is defying the broader market trend and what factors are contributing to its resilience.
Chennai’s Housing Market Defies National Trend
Chennai, the capital of Tamil Nadu, was the only city to record an increase in housing sales in Q2 2025. With approximately 5,660 housing units sold, the city saw an 11% rise compared to the same quarter in 2024. This growth is noteworthy given the overall decline in housing sales across seven major cities, including Delhi-NCR, Mumbai, Bengaluru, Hyderabad, Pune, and Kolkata, where the total sales dropped from 1,20,335 units last year to 96,285 units this year.
Key Factors Driving Chennai’s Housing Demand
1. Surge in Global Capability Centres (GCCs)
One of the main drivers behind the rise in Chennai’s housing sales is the increasing demand for office space by GCCs. Over the past two years, these offshore units of multinational corporations have leased a significant amount of office space in the city. In 2023, GCCs leased around 2 million sq. ft. of office space, and in 2024, this figure rose to 3.29 million sq. ft., marking a 64% annual increase. The growing presence of these centres has translated into heightened demand for residential spaces as well, with employees of these global organizations seeking housing options in proximity to their workplace.
2. Increased New Launches and Developer Response
Developers in Chennai have been quick to respond to the surge in demand by increasing new housing launches. In Q2 2025, the city saw a 79% quarterly increase in new housing supply, with developers adding around 8,525 new units. Approximately 65% of these units were in the mid and premium segments, indicating a strong demand from the higher-income groups and professionals working with GCCs.
3. Strategic Demand-Supply Alignment
Real estate developers in Chennai have been strategically addressing the demand-supply gap by aligning their offerings with the needs of the market. With the growing demand from GCC employees and professionals, there has been a conscious effort to deliver projects that cater to the mid and premium segments, further fueling the housing sales growth in the city.
Chennai Housing Market in Numbers: Quick Facts
| Metric | Q2 2025 | Q2 2024 | Year-on-Year Change | Q1 2025 | Quarter-on-Quarter Change |
|---|---|---|---|---|---|
| Total Units Sold | 5,660 | 5,100 | +11% | 4,050 | +40% |
| New Housing Units Launched | 8,525 | 5,160 | +65% | 4,750 | +79% |
| Demand Increase (Yearly) | 11% | – | +11% | – | – |
| Demand Increase (Quarterly) | 40% | – | – | – | +40% |
Official Quotes on Chennai’s Housing Market Growth
Anuj Puri, Chairman of ANAROCK Group, remarked on the broader market trends, saying, “The war-like climate pushed homebuyers into wait-and-watch mode, compounding the impact of soaring property prices over the past two years. Now, with domestic tensions easing and the RBI’s repo rate cut injecting fresh optimism, buyer sentiment is rebounding.”
Explaining Chennai’s growth, Puri added, “Chennai’s housing market continues to buck the trend due to strong demand from Global Capability Centres. As more multinational corporations establish their operations here, the city’s real estate market has been able to capitalize on this steady influx of skilled professionals.”
FAQ: Frequently Asked Questions
1. Why is Chennai’s housing market doing better than other cities in India?
Chennai’s housing market is driven by the growing presence of Global Capability Centres (GCCs), which has increased demand for both office and residential spaces. Developers have also aligned their offerings with this demand, focusing on the mid and premium segments.
2. What is the role of Global Capability Centres in Chennai’s housing boom?
GCCs, which are offshore units of multinational corporations, have leased significant amounts of office space in Chennai. The growing demand for office space from these companies has translated into an increased need for housing in the city.
3. What was the year-on-year growth in housing sales in Chennai for Q2 2025?
Chennai saw an 11% year-on-year increase in housing sales, with approximately 5,660 units sold in Q2 2025, compared to 5,100 units in Q2 2024.
4. How did the number of new housing launches in Chennai perform in Q2 2025?
In Q2 2025, Chennai saw a 79% increase in new housing launches, with around 8,525 units added to the market, mainly in the mid and premium segments.
5. What is the impact of the RBI’s repo rate cut on Chennai’s housing market?
The RBI’s repo rate cut has brought renewed optimism to the housing market, improving buyer sentiment and potentially contributing to the growth seen in cities like Chennai.