Perumbakkam home prices rise 20 percent as Chennai housing sales grow in early 2026
CHENNAI — The residential real estate market in Chennai saw steady growth during the first half of 2026, with Perumbakkam emerging as a major growth driver, recording a 20 percent year-on-year increase in average residential prices. According to a report by Knight Frank India covering January to June 2026, overall housing sales in the city grew by 3 percent year-on-year to reach 9,198 units, despite the Tamil Nadu Assembly elections held during this period.
The report, titled "India Real Estate: Residential and Office H1 2026", highlighted that average residential prices in Chennai appreciated by 5 percent year-on-year to ₹7,555 per square foot. The growth in Perumbakkam was largely driven by its close proximity to the Old Mahabalipuram Road (OMR) employment corridor and the upcoming Metro Phase II connectivity.
Other neighbourhoods also saw significant price appreciation. Perambur registered the strongest growth in the city with a 35 percent year-on-year increase, bringing average prices to a range of ₹10,563 to ₹11,158 per square foot, driven by infrastructure upgrades and improved metro connectivity. Mogappair witnessed a 13 percent appreciation, supported by strong end-user demand and established social infrastructure.
The market witnessed a distinct shift in buyer preferences toward mid-to-high-end homes. Properties priced between ₹5 million and ₹10 million remained the largest segment, accounting for 47 percent of total sales. The ₹10 million to ₹20 million segment grew to represent 27 percent of transactions, while homes priced between ₹20 million and ₹50 million accounted for 12 percent of overall sales.
Conversely, the affordable housing segment, comprising homes priced below ₹5 million, experienced a sharp decline. Its share of total sales fell from 22 percent in the first half of 2025 to 12 percent in the first half of 2026. The report attributed this drop to rising input costs, affordability pressures, and constrained supply.
Joseph Thilak, National Director of Occupier Strategy and Solutions (Hyderabad & Chennai) at Knight Frank India, noted that demand is increasingly shifting towards mid and premium housing segments as consumers seek larger homes, better amenities, and improved lifestyles. He added that continued investments in manufacturing, Global Capability Centres, and major infrastructure projects like the Chennai Metro Phase II are expected to further strengthen housing demand.
