Chennai’s residential real estate market posted strong growth in Q1 2026, with home sales crossing 4,763 units, marking a 9% year-on-year increase from 4,357 units in the same period last year. This performance positioned Chennai as the fastest-growing residential market among major Indian cities during the quarter. New residential launches also gained momentum, rising 12% year-on-year to 5,112 units, compared to 4,576 units a year earlier. Residential property prices increased 6% year-on-year, indicating sustained buyer demand and market confidence. The market recorded healthy growth in both sales and new launches, driven primarily by strong traction in mid-income and premium housing segments. This trend reflects evolving homebuyer preferences and steady end-user demand, as buyers increasingly opt for larger homes and higher-quality developments. Chennai’s residential market showed a clear shift in demand across price categories, moving away from the affordable housing segment toward mid and premium homes. The sub-Rs 50 lakh segment witnessed a sharp 39% decline, signaling weakening demand in the affordable category. In contrast, the Rs 50 lakh–Rs 1 crore segment grew 19% year-on-year, while higher ticket-size homes gained significant traction. Notably, the Rs 2–5 crore segment recorded a strong 52% year-on-year surge, highlighting growing interest in luxury housing. In Q1 2026, residential demand was led by the Rs 50 lakh–Rs 1 crore segment, which accounted for 2,278 units, making it the largest contributor to overall sales. This was followed by the Rs 1–2 crore segment with 1,240 units sold, and the Rs 2–5 crore segment with 557 units. In the premium and luxury segments, homes priced between Rs 5–10 crore registered 74 units, while properties priced above RS 10 crore accounted for 21 units, underscoring continued demand at the upper end of the market. On the supply side, new housing supply declined marginally by 2% to 94,855 units during the quarter. Launch activity slowed across most major cities, with exceptions seen in Bengaluru, Chennai, and Ahmedabad, where launches remained relatively resilient. Other markets experienced sharper declines in new supply, reflecting cautious developer sentiment. Demand across major cities continued to remain skewed toward premium housing. Sales of homes priced above Rs 1 crore increased 11% year-on-year, even as the sub-Rs 50 lakh and Rs 50 lakh–Rs 1 crore segments declined by 23% and 12%, respectively. The Rs 1–2 crore segment played a key role in driving growth, rising 10% year-on-year and accounting for 29% of total residential sales. Higher-end categories also showed strong momentum, with sales increasing 17% in the Rs 2–5 crore segment, 12% in the Rs 10–20 crore segment, and a sharp 80% surge in the Rs 20–50 crore bracket, highlighting the growing appetite for premium and luxury housing across urban markets.