There has been a marginal
increase within the demand for commercial property in Chennai.
Whereas the residential area district witnessed a decrease in demand
for workplace area with absorption recorded at around 0.28 million
sq. feet compared to close 0.35 million sq. feet throughout the
previous quarter, the peripheral commercial district witnessed
healthy demand levels with absorption levels recorded at 0.30 million
sq. feet throughout the quarter compared to eighty thousand sq. feet
registered throughout the previous quarter.
While Chennai has
witnessed a marginal increase in demand for prime commercial area,
provide constraints would possibly lead to rental values continued to
acknowledge with reference to mid term. Information Technology and
back office operations are expected to stay major contributors to
overall office space area absorption within the town.
within the central business district remained low throughout the
quarter and there was no addition within the existing provide. The
non central business district small market witnessed a rise in
transaction activity throughout the quarter with absorption of around
0.26 million sq. feet, compared to 0.16 million sq. feet throughout
the previous quarter. On the provision front, around 0.21 million sq.
feet of Grade A workplace area was released in the
Commercial market of Chennai has notched up absorption
of 0.5 million square foot throughout the primary quarter and also
the town could witness a surge in SEZ provide throughout the
The year began on a sluggish mode because
of cascading impact of world meltdown aggravated by the robust supply
route across town. In fact, surveys by international property
consultants reveal that the city’s internet absorption throughout
first quarter was the lowest in almost 2 years.
In a connected
development, manufacturing sector accounted for around fifty one
percent of the whole transactions, whereas the share of the IT/ITES
dipped to around thirty six percent throughout the primary quarter
from around sixty percent throughout the previous quarter. Except the
investment grade areas, around sixty thousand square foot of grade B
area got chartered out throughout the quarter, of that more than
fifty percent was leased out into the CBD locations.
provider was witnessed throughout the quarter amid delays in the
project completion of Platinum Holdings in Navalur and Isana in
witnessed throughout the primary quarter were targeted for the most
part on areas like Mount Poonamallee road besides GST road, Ambattur,
Velachery, Perungalathur, Perungudi, Sholinganallur and Siruseri.
According to CB
Richard Ellis’ quarterly survey, the CBD witnessed a dip in demand
for commercial area with negligible absorption of around 0.09 million
square foot. The Off / Non CBD micro-market of Taramani, Guindy and
MRC Nagar witnessed stagnation in market activity in comparison to
the previous quarter. The Suburban Business District (SBD) including
areas like Perungudi, Velachery, Mount Poonamallee Road witnessed
most activity throughout this quarter with an absorption of just
about 0.32 million square foot being reportable as compared to around
0.25 million square foot in the previous quarter.
Overall the market
sentiment continues to stay positive that is predicted to translate
into healthy absorption over the approaching few quarters as per the
industry sources. The SEZ segment ought to still witness provide
additional, thereby being a serious contributor to the market of
in Chennai. IT and back-office operations are expected to
remain major contributors of commercial area demand and transaction
activity. Rental values are expected to stay stable across most
micro-markets over the approaching few quarters.
Chennai sees a gradual growth in residential property market