Chennai, often called the cultural capital of South India, has quietly transformed into a residential hotspot in recent years. Beyond its rich heritage and coastal charm, the city is making headlines for its real estate growth. But what are the real secrets behind Chennai’s rising popularity among homebuyers in 2025?
If someone is planning to invest or buy a home in Chennai, here are five residential market insights that could make all the difference.
1. Price appreciation: Steady growth paved the way for success!
Unlike volatile metro markets, Chennai’s residential prices have shown steady, sustainable growth over the past 5 years. This slow-paced but consistent price appreciation makes it a safer long-term investment option.
• Average capital appreciation: 6 to 8% YoY (2020–2025)
• Hotspots like Sholinganallur, Velachery, and Pallikaranai have seen 15 to 20% growth since 2020.
• Plotted developments in suburban belts like Oragadam and Guduvanchery have appreciated by 25 to 30%, thanks to infrastructure upgrades.
💡JLL Insight: If you’re looking for a low-risk investment with reliable returns, Chennai’s real estate offers the kind of long-term value most metro cities can’t match.
2.  Connectivity & Civil Infrastructure: A Game Changer!
What was once a challenge is now Chennai’s strength. Massive strides in infrastructure development have opened up many previously overlooked areas for residential development.
• Chennai Metro Phase 2 (over 118 km) is set to connect key residential pockets like Poonamallee, Porur, and Madhavaram.
• The Outer Ring Road (ORR) and Chennai Peripheral Ring Road (CPRR) have drastically improved road connectivity to industrial hubs like Sriperumbudur and Oragadam.
• Upcoming Chennai Port: Maduravoyal elevated corridor will reduce traffic congestion significantly.
💡JLL Insights: Areas previously considered ‘too far’ are now seamlessly connected, offering affordable prices with big future potential.
3. Types of Properties Available: Something for Everyone
From luxury villas to compact studio apartments, Chennai offers a diverse range of residential formats that cater to all budgets and lifestyle needs.
• Apartments (1, 2, 3 BHK): Most popular, especially in OMR, Velachery, and Perambur.
• Villas & Row Houses: Gaining traction in ECR, Injambakkam, and Thoraipakkam.
• Studio Units & Co-living Spaces: Emerging near IT corridors and universities.
• Plotted Development: Growing rapidly in suburbs (more below!).
💡JLL Insights: Whether you’re a first-time buyer, an investor, or a retiree looking to downsize, Chennai has an option that fits.
4. Growing Demand for Plotted Development: The Silent Boom
If there’s one trend silently dominating Chennai’s residential scene in 2025, it’s the rise in plotted development projects.
• Developers like TVS Emerald, G Square, and Urban Tree are aggressively launching DTCP and CMDA-approved plots.
• Plots in Oragadam, Avadi, Guduvanchery, Kelambakkam, and Mannivakkam have seen a 20–35% rise in demand since 2022.
• Flexibility, low maintenance, and customization make plotted development especially attractive to NRIs and young buyers.
💡JLL Insights: Plotted development is not just an affordable option; it’s an appreciating asset with high liquidity and freedom to build as per your preference.
5. Social Infrastructure – Catching Up Fast
In the past, Chennai’s outskirts lacked basic amenities. But that narrative is changing, fast.
• Leading schools and colleges (like PSBB Millennium, SRM, and Vellore Institute of Technology) are expanding their footprint in suburban areas.
• Multi-specialty hospitals such as Apollo, Global Hospitals, and Kauvery are opening branches along OMR and ECR.
• Retail and lifestyle hubs, like Phoenix Market City in Velachery and Marina Mall in Egattur, are transforming how residents live and spend leisure time.
💡JLL Insights: Areas once considered “remote” are now livable, thanks to robust social infra that matches city standards.
Chennai’s real estate market in 2025 is a mix of stability, promise, and opportunity. Its low volatility, improving infrastructure, and diverse property types make it an excellent choice for homebuyers who are looking to invest smartly.
Whether you’re looking to settle down, invest in a plot, or buy your first apartment, knowing these 5 secrets will help you navigate the market confidently and choose the right location at the right time.

*Source: JLL Primary Research

Author: Sumedha Das