South
Chennai Drives Nearly 70% Of Launches & Sales in Q2 2026
Chennai, 30 June 2026:
Chennai's housing market lost some momentum in Q2 2026, finds ANAROCK Research's quarterly residential real estate update.
New launches fell sharply on a yearly basis and housing sales also weakened, although the city showed one of the most stable quarter-on-quarter supply trends among the top 7 cities.
Chennai saw 5,315 housing units launched in Q2 2026, down 38% year-on-year from
8,525 units in Q2 2025, marking the second-highest annual decline in new
residential launches among the top 7 cities. The city accounted for just 5% of
total new launches across the top 7 cities in Q2 2026, underlining a sharper
supply correction than most major residential markets.
On a quarterly basis, Chennai's new supply declined by just 1%, the mildest quarterly drop among the top 7 cities, suggesting the market remained relatively stable sequentially despite a steep yearly fall.
The city’s housing sales fell to 5,135 units in Q2 2026, down 9% year-on-year,
making it the second-highest decline in residential sales among the top 7
cities. South Chennai retained its lead on both fronts, accounting for 68% of
the city’s new launches and 69% of its housing sales in the quarter,
reaffirming its dominance in the city's residential market.
Anuj Puri, Chairman - ANAROCK Group, says, "The biggest highlight
in Chennai this quarter is the sharp annual correction in launches. The city
saw 5,315 units launched in Q2 2026 against 8,525 units a year ago, translating
into a 38% decline - the second highest among the top 7 cities. However, the
quarter-on-quarter drop was only 1%, which indicates that Chennai's supply
environment remained relatively steady sequentially even as annual comparisons
looked weak."
Residential demand also softened. Chennai sold approximately 5,135 housing
units in Q2 2026, accounting for 6% of the overall sales share across the top 7
cities and recording the second-highest annual decline in sales at 9%. This
suggests that while the market remains active, buyer momentum moderated during
the quarter in line with the broader pan-India trend.
Geographically, South Chennai continued to dominate the market, capturing 68%
of all new launches and 69% of total housing sales in Q2 2026. West Chennai
also emerged as a notable contributor, with 30% share of launches and 19% share
of sales, while other regions had only a marginal presence in the quarter's
activity.
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Nearly
78% of all new launches were priced in the INR 40 lakh to INR 1.5 Cr bracket,
indicating that developers remained focused on the mid to premium segment where
buyer demand appears strongest. Homes in the INR 2.5 Cr to INR 4 Cr range
accounted for another 18% share, reflecting a relatively limited but visible
premium market presence.
Nearly
four-fifths of all launches were priced between INR 40 lakh and INR 1.5 Cr,
highlighting the continued importance of the mid to premium budget band in
Chennai's housing market.
Despite
the steep annual drop, Chennai's quarter-on-quarter decline in new supply was
only 1%, the mildest among the top 7 cities. This signals that the market may
be stabilising after previous volatility rather than weakening sharply on a
current-quarter basis.
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