Learn more by clicking our most recent Chennai MarketBeat reports on the various sectors below.
Chennai MarketBeat Reports
03/07/2024
Cushman & Wakefield MarketBeat reports analyze quarterly economic and commercial real estate activity including supply, demand and pricing trends at the market and submarket levels.
CURRENT MARKETBEAT
Chennai Office Report
Chennai office sector recorded a gross leasing volume (GLV) of 1.7 MSF, a 20% drop q-o-q. Global capability centers (GCC) dominated, constituting 40% of quarterly leasing volume. Net absorption stood at 0.88 MSF in Q1, a 77% increase y-o-y. New Supply was largely concentrated in the Suburban South submarket. However, overall, city-level vacancies saw a marginal drop. Healthy absorption levels in Q1 led to a 1.3% increase in city-wide rentals compared to the previous quarter.
Chennai Retail Report
Chennai's total retail leasing activity for Q2 2024 stood at 0.1 MSF, primarily driven by main street leasing. Accessories and Lifestyle segment dominated main streets with a 37% share followed by automobile and CDIT sectors capturing 20% and 17% share respectively. Domestic brands comprised 77% of the leasing volume. Chennai's mall vacancy rate surged to 14.7% given supply addition. While overall mall rental rates remained stable compared to Q1 24, certain malls witnessed up to 4% increase y-o-y. Prime retail locations experienced a rental increase of up to 6% y-o-y.
Chennai Residential Report
Chennai residential market saw 5,088 unit launches. The Suburban South I submarket dominated with a 48% share, followed by Suburban South II with a 36% share. The mid-segment captured 69% market share, a significant increase from 64% in Q1 2024. High-end and luxury segments comprised 22% of the quarter's unit launches. The luxury segment witnessed a jump from 2% in H1 2023 to 8% in H1 2024. The affordable segment contributed 9%. Average rental values grew 6% y-o-y. Within the mid-segment, a 2-6% y-o-y capital value appreciation was witnessed.
Chennai Industrial Report
Leasing activity increased threefold in 2023 in comparison to 2022 with Oragadam leading the leasing activity at 30% market share. A 22-25% rental appreciation witnessed in submarkets like Periyapalayam and Gummidipoondi. Leasing for industrial sheds also increased 2x in the second half with Automobile sector marking 33% of the share. Significant rental growth of 8-13% on a y-o-y basis was observed across industrial clusters of Oragadam, Sriperumbudur & more. Demand in this sector is likely to increase with The Tamil Nadu Global Investors Meet 2024 likely to garner significant investments.
India Investment Report
The investment activity recorded in Q2 was INR 158.5 bn (USD 1.92 Bn) which was 63% higher than the previous quarter’s activity and 60% higher than the activity recorded in Q2-22.
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Research • Workplace
Pan India leasing volumes remained strong in Q1 2024, crossing the 20 MSF mark for the third time in the post Covid period. A gross leasing of over 20 MSF for two consecutive quarters is a significant record for the office real estate market, suggesting that activity in India is moving on a higher plane.
14/05/2024
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