Chennai, April 03, 2025: Knight Frank India in its latest report, India Real Estate: Office and Residential (January – March 2025) Q1 2025 highlighted robust growth in Chennai’s commercial and residential real estate markets. In Q1 2025, Chennai’s commercial real estate sector recorded transactions totalling 1.8 million square feet (mn sq ft), marking an impressive 56% year-on-year (YoY) growth. The city also witnessed the completion of 0.2 mn sq ft of new office space during the quarter. Average transacted rents in the commercial segment increased by 3% YoY, reaching INR 69.2 per sq ft per month, reflecting a steady rise in occupier demand.
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Global Capability Centres (GCCs) remained the key demand drivers in Chennai’s office market, accounting for 0.9 mn sq ft of transactions. Flex spaces followed closely, recording 0.54 mn sq ft of leasing activity, signalling a growing preference for agile and cost-efficient workspaces.
The city’s residential market recorded 10% YoY growth in sales, with 4,357 units sold in Q1 2025. New launches also saw an uptick, with 4,576 units introduced, reflecting 5% YoY growth. The average weighted residential price increased by 7% YoY, reaching INR 4,854 per sq ft, underscoring rising demand and healthy market sentiment.
Srinivas Anikipatti, Executive Director, Tamil Nadu and Kerala, said, “Chennai’s real estate market has demonstrated steady momentum in Q1 2025, setting a positive tone for the rest of the year. The commercial sector’s strong leasing activity, particularly from GCCs and flex space operators, reflects the city’s growing appeal as a strategic business hub. On the residential front, stable demand and rising property values indicate a resilient market supported by infrastructure development and an expanding economic base. This sustained growth across asset classes reinforces investor confidence in Chennai’s long-term real estate potential.”
About Knight Frank:
Knight Frank LLP is a leading independent, global property consultancy. Headquartered in London, Knight Frank has 27,000+ people operating from over 740+ offices across more than 50 territories. The Group advises clients ranging from individual owners and buyers to major developers, investors, and corporate tenants. For further information about the Company, please visit www.knightfrank.com
Knight Frank India is headquartered in Mumbai and has more than 1,700 experts across Bangalore, Delhi, Pune, Hyderabad, Chennai, Kolkata, and Ahmedabad. Backed by strong research and analytics, our experts offer a comprehensive range of real estate services across advisory, valuation and consulting, transactions (commercial, retail, land capital and residential), project management, and facilities management. For more information, visit www.knightfrank.co.in
