NEW DELHI: The commercial real estate stock in Chennai, which currently stands at over 89 million sq ft, is expected to cross 100 million sq ft by the end of 2026, according to a joint report by CBRE South Asia and CII Tamil Nadu.
The influx of capital and the entry of prominent developers have facilitated the construction of high-quality office buildings. The private equity investments in Chennai’s office assets touched $1.19 billion in the last two years.
Chennai’s office market, once dominated by the technology corporates, is witnessing a shift towards the BFSI and life sciences sectors. With 0.8 million sq ft absorbed in 2024, the life sciences sector witnessed a 60 per cent jump from last year.
The city is ranked third in Global Capability Centres (GCCs) leasing after Bengaluru and Hyderabad (2022-24). GCC leasing in Chennai stood at about 2.9 million sq ft in 2024.
Apart from Chennai, cities such as Coimbatore, Madurai, and Trichy have seen growth in commercial real estate as well.
Anshuman Magazine, chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE, said, “The state’s strong manufacturing base provides a solid foundation for the growth of its services sector across cities such as Coimbatore, Madurai, and Tiruchirappalli.”
In 2024, Coimbatore experienced significant office space absorption, reaching approximately one to 1.2 million sq ft. The supply of new office spaces in the city ranged between 1.2 to 1.5 million sq ft, while the total stock of available office space was estimated to be between eight to 10 million sq ft.
Madurai, on the other hand, recorded office space absorption between 50,000 to 80,000 sq ft. The supply of office spaces in the city ranged from 80,000 to one lakh sq ft, while the total stock stood at three million sq ft.
Similarly, Tiruchirappalli witnessed office space absorption in the range of 50,000 to 80,000 sq ft. The supply of office spaces was slightly higher, ranging between one lakh to 1.2 lakh sq ft, whereas the total stock remained at three million sq ft.
