Chennai's Residential Boom: Navigating Real Estate Dynamics in 2026

South and West Chennai are poised to be major residential growth areas by 2026, driven by infrastructure improvements and real estate policies. Key areas like OMR and GST Road see rising sales. CREDAI Chennai predicts enhanced affordability through policy measures, despite economic uncertainties.

Chennai's real estate landscape is set for a transformation, with South and West Chennai predicted to become key residential growth engines by 2026. This forecast comes as road infrastructure and metro rail expansions make these regions attractive for homebuyers.

A study from the Confederation of Real Estate Developers' Associations of India (CREDAI) outlines that developments like the new Kuthambakkam bus terminus and Chennai Metro Rail Corridor 4 are already fueling residential demand in western suburbs. Significant interest is noted along Old Mahabalipuram Road, Grand Southern Trunk Road, and Porur-Poonamallee Road.

CREDAI Chennai's president, Mohamed Ali, emphasized that supportive policy measures, including RBI rate cuts and GST tweaks, are expected to boost affordability, particularly in affordable housing. Despite broader economic concerns, housing sales are projected to rise by 18% in FY 2025-26, indicating a stable market.