South and West Chennai are expected to emerge as the key residential growth drivers in 2026, supported by improved road infrastructure, the expansion of metro rail services and proximity to major employment hubs, according to a new study.

Released by the Confederation of Real Estate Developers’ Associations of India (CREDAI), Chennai, the report noted that infrastructure developments such as the Kuthambakkam bus terminus and Chennai Metro Rail Corridor 4 have already triggered increased residential interest in the city’s western suburbs.

The study highlighted strong housing sales across South and West Chennai, particularly along the Old Mahabalipuram Road, Grand Southern Trunk Road, Porur–Poonamallee Road and the emerging western suburban micro-markets.

CREDAI Chennai President Mohamed Ali said factors including Reserve Bank of India repo rate cuts, goods and services tax rationalisation on select construction materials and supportive policy measures are expected to improve affordability and strengthen buyer sentiment in 2026, especially in the affordable housing segment.

CREDAI Chennai expects South and West Chennai to remain the city’s primary residential growth corridors in 2026, driven by metro rail expansion, enhanced road connectivity and closeness to major employment centres, the report said.

According to the study, housing sales in FY 2025–26 are projected to exceed 15,000 units, representing an 18 per cent increase compared with the 12,942 units sold in 2024.

Despite broader economic uncertainties, residential property prices have seen only marginal adjustments, underlining the inherent stability and resilience of Chennai’s housing market, the report added.