IT industry pushes realty growth in Chennai: Report

CBRE South Asia Pvt. Ltd, a leading real estate consulting firm, has announced the findings of its latest India Office MarketView – Q4 2018 report. According to the report, leasing activity in Chennai was primarily witnessed in IT developments in Off-CBD and SEZ developments in OMR Zone 1. Non-IT space take-up was also mainly seen in OMR Zone 1, followed by CBD. Secondary spaces accounted for most of the leasing activity due to space released in investment-grade buildings in OMR Zone 1.

Primary leasing, on the other hand, was mainly reported in recently competed buildings in Off-CBD. Tech corporates continued to lead demand, followed by flexible space operators, engineering and manufacturing firms and e-commerce companies. A majority of deals were in small-to-medium-sized space formats.

Commenting on the findings of the report, Ram Chandnani, Managing Director, Advisory & Transaction Services, India, CBRE South Asia Pvt. Ltd. said: "We anticipate upcoming supply in 2019 to receive significant occupier interest in Chennai. In addition, demand is expected to be led by corporates who are looking at consolidation of their portfolio. Majority of them are looking at new developments in key locations such as OMR Zone 1,2 and Mount Poonamallee Road".

Ameeth Raja, Senior Director, Advisory & Transaction Services, India, CBRE South Asia Pvt. Ltd. said, “Chennai is expected to witness completion of large scale Grade A developments by prominent developers in preferred locations. This will increase demand for large scale consolidation and new requirements in core locations. In addition, due to limited availability of ready to move in space, we are witnessing an increase in pre-commitments in the city.”