Chennai’s residential market saw the launch of 3,700 housing units in the first quarter of 2026, with Suburban South-II emerging as the top-performing submarket, accounting for 38% of the total launches, largely driven by continued momentum in the Manapakkam area.

The Suburban West and Suburban North also recorded increased activity during the quarter, accounting for 18% and 17% of launches, according to details shared by akefield.

Precincts such as Perungalathur, Madhavaram and Nerkundram reportedly recorded healthy traction. Supply during the quarter remained heavily skewed towards premium housing, with high-end and luxury segments together accounting for 61% of total launches, marking a sharp 253% quarter-on-quarter and 28% year-on-year increase. High-end developments alone contributed 44% of the overall supply, while luxury projects accounted for 17%.

Capital values continued to witness healthy appreciation across key micro-markets, with the high-end segment registering a 6–11% year-on-year increase in Central and Off-Central I & II submarkets. The mid-segment recorded even stronger growth of 11–18% across Off-Central II and suburban locations, reflecting sustained end-user demand.

Office market

The report by Cushman &Wakefield also pointed out that Chennai’s office market recorded a gross leasing volume (GLV) of 1.66 million sq. ft. in the first quarter of 2026, reflecting an 18% quarter-on-quarter and 16% year-on-year decline, largely due to a high base effect from strong leasing activity witnessed in previous quarters.

Peripheral South-west emerged as the leading submarket during the quarter, accounting for 31% of leasing activity (523,077 sq. ft.), followed by Peripheral South with a 25% share (415,724 sq. ft.). The city also witnessed 1.62 million sq. ft. of new completions, while net absorption stood at 1.04 million sq. ft., down 38% q-o-q. Despite moderated absorption, vacancy levels continued to improve, declining by 209 basis points year-on-year.

IT-BPM remained the primary demand driver with a 31% share of leasing activity, followed by Flexible Workspace operators at 19% and Engineering & Manufacturing firms at 15%. Global Capability Centres (GCCs) continued to play a pivotal role in driving occupier demand, contributing 55% of quarterly leasing — the highest share recorded to date.

Retail market

Chennai’s retail market recorded leasing activity of 0.14 million sq. ft. in Q1 2026, with main streets continuing to dominate occupier demand, accounting for 89% (0.12 million sq. ft.) of the total leasing volume. On a sectoral basis, fashion emerged as the leading demand driver, contributing 40% of main street leasing activity, while department stores and F&B each accounted for 17%. Domestic brands continued to anchor leasing momentum across the city’s retail landscape. Westside leased approximately 21,000 sq. ft. on PTR Road, while Zudio secured around 12,000 sq. ft. in the same micro-market. In Adyar, Easybuy leased close to 10,000 sq. ft., further reinforcing demand from retail brands in Chennai’s high-street retail ecosystem.