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 gross leasing volume of 2.17 MSF, 10% growth over Q1-25. Fresh leasing dominated, contributing 92% to Q2 leasing. Peripheral South led with 33% share, followed by Suburban South (31% share). IT-BPM commanded a 47% share, followed by the BFSI sector (22% share). The city saw 1.22 MSF of new Grade A supply while net absorption rose to 2 MSF, an 84% q-o-q increase. City-wide grade A vacancy stood at 13.85% while overall city-wide rentals grew 6% y-o-y.
Chennai Retail Report
Chennai saw retail leasing volume of 0.16 MSF in Q2-25, with main streets, comprising 72% share. North-west submarket led with 45% share, followed by the Suburban South at 22%. F&B segment captured a 28% share, followed by the supermarket/hypermarket category at 27%. Malls recorded 0.04 MSF of leasing activity with overall vacancies at 13.56%. Superior malls reported tighter vacancies at 1-2%. Grade A mall rentals saw a modest uptick while select main streets grew 4-7% 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.
Contact
VS Sridhar
Executive Managing Director - Tamilnadu & Kerala and Head GCC Advisory - Operations • Chennai
RELATED INSIGHTS
Research
Premiumisation of India's Retail Sector: Upscaling, Upgrading and Evolving
A young population and its growing wealth are catalysts for India’s retail sector to transition towards Premiumisation.
Suvishesh Valsan • 15/04/2025
Research • Workplace
REWORKING the Office Asia Pacific
Our ‘REWORKING’ series examines decision-making for occupiers under four key considerations: Cost, Carbon, Culture and Community – under which the changing demands, needs and impacts on office spaces and strategies can be examined.
Khurshed Gandhi • 03/11/2023
Insights
Trends to look out for in Warehousing & Logistics industry in 2021
Warehousing is the nerve centre of the logistics industry. The industry creates time utility and bridges the time gap between the production and consumption of goods.
Abhishek Bhutani • 21/01/2021