First-time home buyers driving growth in Chennai: Aadhar Housing Finance

Affordable housing finance company Aadhar Housing Finance Ltd said that it is witnessing sustained demand for affordable housing in Chennai, especially among first-time homebuyers. 

The company recorded a 35% year-on-year (YoY) growth in low-income affordable housing loan disbursements in Chennai as of Q3 FY2026, largely driven by the above-mentioned segment. 

Aadhar Housing Finance has attributed this rise in demand to a strong combination of economic growth, infrastructure development, and evolving buyer preferences across Tamil Nadu. 

“The city’s metro expansion project and improved road connectivity is driving growth in peripheral and emerging micro-markets,” the housing finance company said.

“Overall, Chennai stands out as a market where infrastructure growth, policy support, and developer focus are well aligned with actual homebuyer demand, particularly in the affordable and mid-income segments,” it added.

“There is a clear shift in buyer preference among homebuyers in Chennai, with an increasing inclination towards ready-to-move-in properties, particularly among first-time buyers,” said Rishi Anand, MD & CEO, Aadhar Housing Finance Ltd. 

This trend is driven by the need for greater certainty, as customers look to avoid construction delays and project-related uncertainties, while also mitigating the dual financial burden of paying both rent and EMIs, the company said.

According to Mr Anand, affordable and mid-income housing segments are key drivers of Chennai’s real estate expansion, with demand expected to remain robust in the near to medium term.

He said government initiatives like Pradhan Mantri Awas Yojana have played an important role in driving homeownership demand in Chennai and across Tamil Nadu, particularly within the EWS and LIG segments. 

By improving affordability through interest subsidies, the scheme has made formal housing finance more accessible and enabled a wider base of customers to enter the housing market.

Reinforcing Aadhar’s focus on Tamil Nadu, Mr Anand said, “We aim to strengthen our branch network across high-growth micro-markets in Chennai and key tier 2 and tier 3 cities in Tamil Nadu, while continuing to support first-time homebuyers in the affordable segment.”

Aadhar Housing Finance is planning to scale through a combination of expanded distribution, strengthened local engagement, and technology-led efficiencies. 

“Our focus remains on the economically active segment, self-employed individuals, informal income earners and first-time buyers. We tailor products, underwriting and engagement models to suit their income patterns and aspiration,” Mr Anand added.

Terming Tamil Nadu and Chennai as a high-potential market, Aadhar Housing Finance believes that urbanization, a growing base of salaried and self-employed customers and increasing demand for affordable and mid-income housing will act as catalysts for growth.