Chennai MarketBeat Reports
Suvishesh Valsan • 03/07/2025
Cushman & Wakefield Chennai 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 market recorded a gross leasing volume of 1.97 MSF, a 19% y-o-y growth, driven by the Suburban South (38%), followed by the Peripheral South-west (34%). Net absorption stood at 0.62 MSF. IT-BPM comprised 47% of Q1 leasing, while flexible workspaces and engineering & manufacturing, contributed 28% and 16% share, respectively. GCCs recorded a significant share of 47% in Q1 leasing volume. Grade A vacancy stood at 15.91% while city-wide rentals grew 6% on y-o-y.
Chennai Retail Report
Chennai’s retail sector recorded leasing of 0.17 MSF in Q1-25, with mainstreets, accounting for over 90% of the activity. North-west submarket led mainstreets leasing, with 38% share, followed closely by the Off-CBD submarket (37% share). Fashion segment led with 37% share, followed by accessories and lifestyle (32%). Overall mall vacancy stood at 14.13% in Q1. Superior malls maintained tight vacancies between 1-2%. Grade A malls witnessed slight rental appreciation whereas mainstreet rentals grew 3-4% q-o-q.
Chennai Residential Report
Chennai residential market saw launches of 6,872 units in Q2-25. The Suburban South I submarket dominated with 48% share, followed by Suburban South II submarket (35% share). Mid-segment dominated supply with 76% share, while high-end and luxury segments followed with 17% share. Across most submarkets, rents grew 3-5% q-o-q. Capital values appreciated with weighted average prices for Suburban South I and II new launches growing by 16% and 26% y-o-y.
Chennai Industrial Report
Chennai saw warehouse leasing volumes of ~ 5 MSF, a significant 72% growth compared to H1-24. Oragadam submarket led with 20% share, followed by Madhavaram (19% share). Sector-wise, demand was driven by the 3PL players (45% share) and the Automotive sector (14% share). Industrial leasing surged to 2.4 MSF, 2.3X the volume recorded in H1-24. Oragadam submarket dominated, accounting for 56% of this volume. Key industrial submarkets, including Oragadam, Gummidipoondi and GST Road, saw 4-7% y-o-y rental growth.
India Capital Market Report
Cushman & Wakefield India Capital MarketBeat reports analyze quarterly economic and commercial real estate activity including supply, demand and pricing trends at the market and submarket levels.
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