Expressnews
Chennai, April 07, 2026: Knight Frank India, a leading international property consultancy, in its latest report, India Real Estate: Office and Residential Market (January – March 2026) Q1 2026 noted that Chennai’s office market recorded leasing activity of 1.5 mn sq ft in Q1 2026, while new completions stood at 0.5 mn sq ft. Office rentals also registered an 8% YoY increase, reflecting steady occupier demand despite moderation in transaction volumes.
Chennai Office Market Summary (Q1 2026)
| Office Transactions(Mn Sq Ft) | Completions(Mn Sq Ft) | ||||||
| Cities | Q1 2025 | Q1 2026 | % Change YoY | Cities | Q1 2025 | Q1 2026 | % Change YoY |
| Chennai | 1.8 | 1.5 | -19% | Chennai | 0.2 | 0.5 | 160% |
Source: Knight Frank Research
Chennai’s commercial real estate market witnessed leasing activity driven primarily by Global Capability Centres (GCCs), followed by India-facing businesses and flex operators, reflecting a diversified occupier base.
End-Use Category Split (Chennai – Q1 2026)
| End-User Licensee/Buyer | GCC | Third Party IT | Flex | India Facing | Total |
| Area transacted in mn sq ft | 0.7 | 0.0 | 0.36 | 0.4 | 1.5 |
| % Share | 50% | 3% | 24% | 24% |
Source: Knight Frank Research
RESIDENTIAL MARKET UPDATE: JANUARY – MARCH 2026
Chennai’s residential market led all major cities in terms of growth momentum in Q1 2026, registering the highest year-on-year increase in both sales and new launches. Chennai’s residential market recorded 4,763 units sold in Q1 2026, compared to 4,357 units in Q1 2025, reflecting a 9% YoY growth. New launches stood at 5,112 units, compared to 4,576 units in Q1 2025, registering a 12% YoY increase. The city’s weighted average residential prices rose by 6% YoY, indicating steady demand momentum.
Residential Sales and Launches
| Sales | Launches | ||||||
| City | Q1 2026 | Q1 2025 | YoY % Change | City | Q1 2026 | Q1 2025 | YoY % Change |
| Chennai | 4,763 | 4,357 | 9% | Chennai | 5,112 | 4,576 | 12% |
Source: Knight Frank Research
Joseph Thilak, National Director – Occupier Strategy and Solutions (Hyderabad, Chennai and Kochi), Knight Frank India, said, “Chennai’s real estate market has demonstrated balanced performance in Q1 2026. While office leasing activity has moderated, the sharp increase in completions highlights developer confidence and a robust supply pipeline. The continued dominance of GCCs and India-facing occupiers reinforces Chennai’s position as a preferred commercial destination. On the residential side, the market has recorded healthy growth in both sales and launches, with strong traction in mid and premium segments. This reflects evolving homebuyer preferences and sustained end-user demand.”
Chennai’s residential market exhibited a clear shift in demand across ticket sizes, with traction moving away from the affordable segment toward mid and premium housing. The sub-INR 5 mn segment saw a 39% decline, indicating a relative moderation in entry-level demand. Notably, Chennai also bucked the broader trend in the mid-segment, with INR 5–10 mn sales rising 19% despite muted performance in most other cities, underscoring the city’s resilience in this category. At the higher end, demand remained robust, with the INR 10+ million segments growing steadily—particularly the INR 20–50 million bracket, which surged 52% year-on-year—pointing to rising traction in premium housing.
Ticket-Size Split of Sales – Chennai
| Ticket Size Categories | <5 mn | 5-10 mn | 10-20 mn | 20-50 mn | 50-100 mn | 100-200 mn | 200-500 mn | Total |
| Q1 2026 | 591 | 2,278 | 1,240 | 557 | 74 | 21 | 2 | 4,763 |
| Q1 2025 | 969 | 1,907 | 1,032 | 367 | 67 | 15 | 0 | 4,357 |
| YoY % Change | -39% | 19% | 20% | 52% | 10% | 40% | NA | 9% |
Source: Knight Frank Research
