Learn more by clicking our most recent Chennai MarketBeat reports on the various sectors below.
Chennai MarketBeat Reports
16/04/2024
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 main streets saw a 36% quarterly growth in leasing volume predominantly driven by Off-CBD (~38%) and North-west submarkets (~24%) in Q1-2024. F&B sector was a major driver of demand across main streets, accounting for 23% of total leasing activity in Q1. Malls recorded healthy traction in Q1, with 12% quarterly growth in leasing volume. Prominent malls in Northwest and Peripheral South submarkets contributed to majority (~90%) of the quarterly mall leasing. While mall rentals remained unchanged, a marginal rental growth is anticipated in the near term.
Chennai Residential Report
Chennai’s residential sector recorded a significant quarterly growth of 86% in the first quarter of 2024. Majority of the launches were concentrated in Suburban South II submarket (63%), followed by Suburban North submarket (28%). The mid-segment doubled its share compared to the previous quarter, constituting 64% of total launches. High-end and luxury segments marked a threefold increase on a y-o-y basis, constituting 28% of quarterly unit launches. A 2%-5% quarterly growth in capital values within the mid-segment and 1%-3% quarterly rental growth across submarkets 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.
RELATED INSIGHTS
Insights • Government / Public Sector
Telangana 2050: Envisioning Infrastructure and Real Estate for the Future
This white paper explores the intricate relationship between infrastructure development and real estate growth in Telangana, drawing inspiration from Chief Minister Sri A Revanth Reddy’s vision for the state's future.
02/04/2024
Research
Kerala's Cities Emerge as Real Estate Sector’s Top Picks
Cushman and Wakefield India Research recently released a research publication, India's Next 10 Emerging Markets, which identified the top 10 tier-II cities of India from a broader list of 17 cities having the highest growth potential in the commercial real estate sector.
03/11/2023
Research
West Bengal-The Gateway to New Growth for Corporate India
The report highlights the level of development in West Bengal and how various reforms are being formed by the state government to attract investors. The report delves into various industrial reforms, and realty reforms that will help in the economic activity of the state.