Learn more by clicking our most recent Chennai MarketBeat reports on the various sectors below.
Chennai MarketBeat Reports
30/09/2024
Cushman & Wakefield 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 recorded a gross leasing volume of 1.74 MSF, a 5% and 10% rise on q-o-q and y-o-y basis respectively. Quarterly activity was driven by prime submarkets of south-west (34%) and suburban south (33%). GCCs remained dominant with 32% share followed by IT-BPM sector, comprising 28% share. Net absorption stood at 0.52 MSF. The city witnessed no supply addition this quarter, however, it is expected to receive a healthy supply of 5.28 MSF over the next two quarters. The city-level rentals saw a marginal q-o-q rise of 0.7%.
Chennai Retail Report
Chennai's total retail leasing activity for Q2 2024 stood at 0.1 MSF, primarily driven by main street leasing. Accessories and Lifestyle segment dominated main streets with a 37% share followed by automobile and CDIT sectors capturing 20% and 17% share respectively. Domestic brands comprised 77% of the leasing volume. Chennai's mall vacancy rate surged to 14.7% given supply addition. While overall mall rental rates remained stable compared to Q1 24, certain malls witnessed up to 4% increase y-o-y. Prime retail locations experienced a rental increase of up to 6% y-o-y.
Chennai Residential Report
Chennai residential market saw ~6,000 unit launches, a 19% q-o-q growth. Suburban South II submarket led with a 42% share, followed by Suburban South I (26% share). The mid-segment held 52% share, while high-end and luxury segments captured 32%, showing 71% q-o-q growth Affordable segment comprised 16% share, ~2X the volume of Q2-24. Rental values for mid-segment units in Off-Central I & II and Suburban South I & II rose by 2-3% q-o-q, while capital values in Off-Central II, Suburban South I & II and Suburban North rose by 4-8% y-o-y.
Chennai Industrial Report
Chennai saw warehouse leasing volumes of 2.14 MSF. Oragadam submarket dominated with 57% share, followed by Madhavaram (16%) and Irungattukottai (14%). Logistics/3PL sectors led with 41% share, followed by automobile sector (23% share). Industrial leasing stood at 1.04 MSF. Oragadam, Irungattukottai and Sriperumbudur comprised 81% of leasing volume. Oragadam, Madhavaram and Periyapalayam saw 4-5% y-o-y rental growth. Poonamallee submarket saw 8% rental growth over H1 2023.
India Capital Market Report
Q2 2024 witnessed massive investment inflows amounting to INR 231.5 Bn (USD 2.77 Bn), marking a 1.5x q-o-q growth. The Logistics & Industrial (L&I) segment led with 56% share.
RELATED INSIGHTS
Insights
India, the world’s fastest-growing economy, is set to reach USD 5 trillion by 2027, becoming the third largest globally. This growth will bring numerous opportunities, especially in consumption-driven sectors like retail.
19/09/2024
Research • Workplace
From Flex to Managed: Evolution of the Flex Space Industry
The evolution of the flex segment in India’s office market has been a story of rapid transformation. The flex space operator footprint surged by 23% in 2022 and 18% in 2023, marking the sharpest rise seen in history! With H1-24 already adding about 5 MSF to the total inventory, 2024 continues to maintain this momentum.
03/09/2024
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