South & West Chennai is set to be a major residential development corridor in the year 2026, facilitated by the development of the road network, the development of the MRTS, as revealed by a study published by the CREDAI in Chennai.
The study also reveals how the increased focus on infrastructural development and governmental support has managed to alter the buyer preference trends, making the Southern as well as Western suburbs the most desirable options to fulfill the demand for housing in the upcoming year. Additionally, despite some macro-economic fluctuations, the residential sector of Chennai has managed to remain quite resilient.
Infrastructure Push Driving Demand
According to the report, development along the infrastructure lines has been instrumental in bringing in residential interest in the West Chennai segment of the city. However, the start of the Kuthambakkam Bus Terminus and developments related to Chennai Metro Rail Corridor 4 have further enhanced connectivity to the western suburbs, thus drawing more homebuyers to the region.
In the same manner, South Chennai remains to benefit from the presence of well-developed roads and close proximity to large IT/industrial hubs. Regions along the Old Mahabalipuram Road (OMR) and Grand Southern Trunk Road continue to be the most bustling residential areas in the said location due to high absorption levels.
It was observed that strong sales movements were seen in prime micro-markets such as OMR, GST Road, Porur-Poonamallee Road, and the amalgamated western suburbs.
Sales Momentum and Market Stability
According to CREDAI Chennai, in FY 2025-26, sales are set to cross 15,000 units in the housing sector, registering a sharp jump of 18% from sales recorded in 2024 at 12,942 units.
Despite the presence of inflationary pressures and economic challenges, the prices in the residential segment in Chennai have undergone marginal changes, and this cements the reputation of the city as an affordable real estate destination in the country compared to other major metros. “Chennai remains distinct for its ‘price stability’ and ‘end-user demand-driven’ demand,” the report noted.
Support from Policies to Enhance Affordability
The president of CREDAI Chennai, Mohamed Ali, said that the easing of policies and monetary policies would further boost the sentiments of homebuyers in the coming year of 2026, specifically in the low and mid-budget segments.
Factors such as RBI repo rate reductions, GST simplification on certain construction materials, as well as favorable government regulations, are expected to improve affordability as well as the overall market environment, according to Ali.
He also stated that low rates of borrowing and decreased costs of construction may be beneficial for pricing and supply along main routes of residential movements.
The report reiterated that South and West Chennai are expected to continue as the prime movers for housing demand in the medium-term future. Enhancement in MRTS connectivity, expansion of arterial roads, and connectivity to employment nodes in IT, manufacturing, and services sector continue to drive demand.
“CREDAI Chennai looks forward to South and West Chennai remaining the major residential corridors in the year 2026, owing to the extension of the metro, roads, and proximity to major job hubs,” said the study.
Developers are now increasingly targeting these regions because of the availability of larger parcels of land, opportunities for them to carry out integrated developments, and rising requirements for well-planned communities.
It was found that the residential property market in Chennai is having the right blend of growth, government policies, and demand from end-users. It was pointed out that the Chennai residential property market has been attracting people looking for long-term value for money, unlike the residential property market which keeps on growing through speculations.
It is observed that the residential market in Chennai is supported by a well-balanced ecosystem of infrastructure development, stable government policies, and genuine demands from buyers. It is noticed that Chennai is not driven by speculations in real estate.
With large-scale infrastructural developments on the verge of being completed and new ones in development, South and West Chennai are poised to be at the forefront of housing development in Chennai in 2026 and will help sustain Chennai’s reputation as a stable and sustainable housing market in India.
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