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 2.1 MSF. The western corridor dominated with over 80% share. Industrial sheds clocked 2.3 MSF of leasing, which is 2.3X the volume of H1-24. Engineering & Manufacturing occupiers comprised 57% of the demand.
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
India
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