The real estate sector is expected to contribute USD 1 trillion to the Indian economy, which is 15 per cent of the country’s GDP by 2030.
The residential part of the real estate sector has grown by three times since 2019. The real estate sector has now become highly compliant and investment worthy because of the reforms and regulations.
The year 2025 has turned out to be the best for the office space segment, according to Anuj Puri, Co-Founder and Chairman, ANAROCK. For one, many data centres have come to Chennai because of the undersea cable. For another, the China+1 strategy is having a positive fall-out on the real estate sector. The absorption growth that has happened in the industrial sector from last year to this year is 35 per cent. “By 2026, the real estate will see a growth of up to 60 per cent,” he said.
According to a report titled “Real Estate and Infrastructure Driving Growth in Tamil Nadu”, released at the event, logistics, warehousing and industrial parks are strengthened by the three major industrial corridors such as Chennai–Bengaluru, Chennai–Kanyakumari and Kochi–Coimbatore–Bengaluru. Tamil Nadu acts as a host to 54 operational Special Economic Zone (SEZs), the highest in the country.
Bhupesh Nagarajan, Co-chairman of FICCI Tamil Nadu State Council and the CMD of Indira group of companies, said that infrastructure played a major role in improving the economic growth of Tamil Nadu. Chennai Metro Phase II, Parundur airport project and the like would further improve the economic growth of Tamil Nadu, he added.
Tamil Nadu hosts over 250 Global Capacity Centres (GCCs). About 10 per cent of India’s GCCs are in Chennai. Also, Tamil Nadu has become the 2nd most competitive location for electronic R&D activities globally and has 750-plus R&D institutes in the state.
Looking at the tier-II cities, Coimbatore is ranked among the top tier-II cities for setting up Global Capability Centres in India, according to the report.
According to the report, Workday was setting up its Chennai GCC with a Rs 220-crore investment, supporting next-gen AI development and employing around 1,000 people. Lennox India is also expanding its
Chennai hub with an investment of over Rs 50 crore, increasing its space to 1.5 lakh sq ft and workforce to nearly 1,500.
The event had major real estate players for a panel discussion. The common themes discussed in the residential vision 2030 were the approval process remaining a significant bottleneck, raw material shortages and price escalations. It also focussed on how home buyers are now well-informed, how their expectations have transformed globally, how demanding they have become in seeking better design, amenities, transparency and the like. To meet these demands, developers must embrace rigour, resilience and adaptability.
Residential real estate
Sanjay Chugh, City Head and Director, ANAROCK Property Consultants Pvt.Ltd., said that Chennai’s residential real estate market had seen steady growth and more than 83,000 homes were sold between 2021 and 2025. From January to September 2025, Chennai had the same momentum and 19,700 projects were launched, which marked a 15 per cent growth compared to last year. Looking at the sales, there is a 5 per cent increase year-over-year and nearly 15,700 housing units were sold.
By the end of 2025, the total number of launches is expected to touch 23,000 to 24,000 units, with South Chennai continuing to dominate both supply and demand. Most home-buyers are still focused on the Rs 40–80 lakh bracket, which remains the strongest-performing segment, but the premium category ( Rs 1.5 crore and above) has also expanded, now accounting for 28 per cent of all new supply. Prices have been steadily climbing, up 38 per cent over the past five years and another 8 per cent in 2025 alone. The current average price stands at around Rs 6,800 per sq ft and is expected to cross Rs 7,000 per sq ft by year-end.
Addressing the valedictory function of FICCI Infrastructure summit, Shiv Das Meena, Chairman, Tamil Nadu Real Estate Regulatory Authority (TNRERA), said that the second phase of the Metro Rail project, when completed, would benefit more people, thereby meeting the real demand of metro commuting. He said that the GDP growth of Tamil Nadu stood at 11.19 per cent when compared to the national average of 6.5 per cent.
TN at the forefront
A Mohamed Ali, President, CREDAI Chennai Chapter, said that Tamil Nadu was in the forefront of development of all kinds and set to emerge stronger in infrastructure development by 2030. He said that the state could well become a USD 4 trillion dollar economy by 2047.
By 2030, the state could become a global model for clean energy and the real estate could give planned cities with more urban infrastructure focusing on waste management, storm water drains and water management, besides meeting the demand for A grade office spaces and creating re-developments in line with the demand to provide houses to the growing population using smarter, faster and green technology aided by AI-driven planning, he said.