Chennai accounted for 4-5% of the total area sold across top seven cities in the country during FY2021-FY2025. The area sold for the top seven cities increased at a CAGR of 18% during FY2021–FY2025; however, the Chennai market grew at a relatively slower CAGR of 11% during the same period primarily attributable to lower investor participation and a cautious stance by developers on large-scale launches, given the city’s historically moderate price appreciation trends.

During FY2021 to FY2024, Chennai saw a CAGR growth of 15% to 26msf; however, growth rate moderated to 2% in FY2025 due to a high base effect and a slowdown in the affordable segments and marginal growth in mid and luxury segments caused by delayed approval for launches. Notwithstanding this, the city recorded a growth of 17% YoY in area sold in H1 FY2026, reaching 16 msf, primarily driven by accelerated launches during the period (up by 20% YoY), though sales growth in the second half is expected to remain flattish due to high base and moderate launch pipeline.

Exhibit: Trend in area sold on Chennai (in msf)

Source: ICRA Research and Propequity; data excluding stalled projects; Est. – Estimate, Proj. - Projection