CHENNAI: Chennai’s historically conservative luxury housing market may be showing indications of a shift, with the sale of luxury homes (valued at Rs 4 crore and more) gaining momentum this year.

The city’s neighbourhoods that have been deemed traditionally affluent -- Adyar, Anna Nagar, Nungambakkam, and Kilpauk -- are leading this transition. Once dominated by legacy properties, these areas are witnessing a wave of redevelopment, with sleek, amenity-rich residences catering to a younger, post-pandemic class of affluent professionals and entrepreneurs.

According to real estate consultancy CBRE’s India chief Anshuman Magazine, luxury homes have a floor area of more than 2,000 sq.ft. and are often located within gated communities in prime city zones. Such properties commonly include advanced security features, clubhouse, swimming pool, and a suite of recreational amenities -- from golf courses and play areas to lounges and event spaces. “The interiors are finished to an exceptionally high standard,” he said.

Data from CBRE shows that 95 luxury units were sold in the first quarter of 2025 compared to just 41 during the same period last year.

“The 95 luxury homes in Chennai range over 2 lakh square feet to 2.25 lakh sq. ft (in total). And there is more demand for luxury apartments,” said Magazine.

“The Chennai market has never been risk averse. It has always been value-driven,” said Diptakirti Chaudhuri, chief marketing officer of Casagrand. “Buyers are now willing to pay a premium for homes that deliver on design, location, and efficiency.”

Adyar, situated close to both the IT corridor and central Chennai, has emerged as a particularly sought-after enclave. “Its green cover and connectivity make it a strong contender for luxury development,” said Chaudhuri, adding that buyer preferences remain diverse. “Some customers favour villas, others are drawn to large-format apartments.”

Developers such as Casagrand and Brigade Group are tapping into this demand by launching high-specification projects in central locations.

“The demand is being driven by rising disposable incomes, better infrastructure, and a more aspirational buyer base,” said Viswa Prathap Desu, chief operating officer, Brigade Group.

Sustainability is also becoming a core tenet of Chennai’s luxury housing market. Chaudhuri added, “The new definition of luxury includes energy efficiency, environmental responsibility, and readiness for a sustainable future.”