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Quarterly residential real estate analysis of top 8 cities in India

Chennai Real Estate Report Jul-Sep 2021

2305 Oct 18, 2021 Download Report
  • Nearly 3,000 new units were added; localities such as Porur, Siruseri, Tiruvallur, Pallikaranai and East Tambaram saw maximum new supply.
  • Over 3,000 units were sold across the city, mostly in the mid-income segment, a growth of nearly 100% over the same quarter last year.
  • Gated communities and independent villas garnered buyers' interest. Puddupakkam, Vandalur and Tambaram, remained popular for plotted developments.
  • Industrial hubs of Oragadam, Sriperumbudur, Guindy and Ambattur saw improved demand for residential properties with a larger carpet area.
  • The rental market remained dull. With Work from Home (WFM) in place, areas such as Velachery, Medavakkam and Sholinganallur, reported an average rental decline of 8-9 percent, YoY.



Property Prices
Rental Rates
* Property prices represent quarterly change * Rental Rates represent yearly change

* Supply is basis properties listed on * Demand is basis queries received on



Meagre sales volume coupled with limited new residential supply stated the tale of Chennai’s real estate in JulSep 2021. Labour shortage, lockdown restrictions and rising raw material prices remained the deterrents for the sector. Nearly 3,000 new units were added during Q3 2021. Localities such as Porur, Siruseri, Tiruvallur, Pallikaranai and East Tambaram, saw maximum new supply. A majority of the new launches were reported in the affordable-to-mid budget segment (within Rs 60 lakh).

A slew of fiscal incentives, such as low home rates and unchanged property prices, pushed housing sales up in Chennai. Over 3,000 units were sold across the city, mostly in the mid-income segment, indicating a growth of nearly 100 percent, YoY.

Gated communities and independent villas garnered buyers’ interest. Genuine buyers preferred relocating to suburban/peripheral markets in order to get larger homes without hurting their pockets.

Ease in lockdown restrictions and resurgence of construction activities in full swing would flip the dynamics of the realty sector in the city. Addition of over one lakh new affordable houses in the city in the coming quarters is expected to turn the table, especially for the subRs 45 lakh segment, which reported the highest demand. Furthermore, several proposed infrastructure projects, such as Chennai Metro Phase 2, Chennai Peripheral Road, and redevelopment of George Town, have the potential to spur realty growth.


Key micro-markets across budget segments

Key micromarketsAverage Capital 'Asks'Average Rental 'Asks'Rental Yield
Within Rs 40 lakhGuduvancheri3,010 - 3,950113.29%
Avadi3,140 - 3,900103.52%
Rs 40 lakh - Rs 1 croreMadipakkam4,120 - 5,200122.88%
Kolathur4,500 - 5,520133.02%
Medavakkam4,740 - 5,840122.73%
Rs 1 crore and aboveVelachery5,970 - 7,500162.86%
Thoraipakkam5,200 - 7,060172.96%
Perambur5,590 - 6,610142.69%

* Note: Rental Yield has been calculated for a 1,000 sq ft apartment. **Average property prices and rental rates have been calculated as per listings posted on in the studied quarter. ***The range of property prices may vary by 10 percent depending on the age and furnishing status of the residential apartments



Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. 99acres does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
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