A major real estate developer has acquired a prominent 5.5-acre property in Nungambakkam, Chennai, in a deal estimated at about ?1,200 crore. This is considered one of the largest land transactions recorded in the city’s recent history, according to people aware of the development.

“The centrally located parcel is expected to be redeveloped into a luxury residential and retail-led project, driven by strong demand, the prime nature of the location, and the scale of the land,” said one person familiar with the matter. The transaction adds momentum to Chennai’s luxury housing market, where supply remains extremely limited and land parcels in core areas such as Nungambakkam, Boat Club, RA Puram, and Teynampet are increasingly scarce.

The seller confirmed the signing of the sale agreement for the Haddows Road property. The buyer did not respond to queries. An international property consultancy firm acted as the transaction advisor.

The site includes nearly 4.5 lakh sq ft of built-up office space and traces its legacy to a financial institution that previously operated backend support functions there before its operations were taken over by another global bank in 2000. “The land was originally owned by the earlier institution and later transitioned as part of the takeover, with backend operations continuing for many years. It contains roughly 450,000 sq ft of built-up area in the Nungambakkam micro-market,” the first person added.

According to property consultants, the deal reflects a growing shortage of quality land in central Chennai. The land is valued at ?7.5–8 crore per ground (2,400 sq ft), placing it among the highest-valued recent land deals in the central business district. “There is almost no prime land left in central Chennai, and whatever does enter the market is being closed at significantly higher valuations,” said an independent real estate advisor.

Another senior consultant noted that this transaction signals renewed confidence among developers in the city. “Deals of this scale demonstrate how strongly developers are betting on luxury housing and mixed-use redevelopment in core locations. Chennai’s land market has quietly become one of the most competitive among major metros.”

The acquisition further strengthens the developer’s presence in high-end real estate. The group is also working on an ultra-luxury twin-tower project on a nearby 4.5-acre site previously occupied by a well-known hotel.

Developers and consultants say Chennai’s residential and retail markets have entered a strong upcycle in 2024–25, driven by rising demand for luxury housing, increased end-user purchases, and a sharp revival in both high-street retail and organised retail leasing.