Chennai MarketBeat Reports

Chennai recorded gross office leasing volume (GLV) of ~2.02 MSF in Q4-25, supported by strong occupier activity across key corridors. IT-BPM dominated with 43% share, while flex operators (20%) and BFSI (17%) continued to expand. GCCs remained a major growth engine, accounting for 51% of Q4 leasing and 41% annually, the highest ever for Chennai. Net absorption hit a record 7.02 MSF for the year, fueled by healthy pre-commitments in new Grade A supply. Vacancy held steady at ~12%, while rentals rose 2% q-o-q and 6% y-o-y.

Chennai recorded retail leasing volumes of ~0.19 MSF in Q4-25, up by 18% q-o-q, taking annual leasing to ~0.68 MSF. Main streets dominated with 92% share, led by Peripheral South (46%), Suburban South (28%) and Off-CBD (17%). Key locations such as OMR, Adyar, T. Nagar and Anna Nagar witnessed strong traction. Department stores led with 30% share, followed by fashion (20%) and F&B (18%), all driven largely by domestic brands. Mall leasing stood at ~0.01 MSF, with Grade A vacancy remaining tight at 1–2%. Main street rentals appreciated 3–5% q-o-q, with Cathedral Road posting a sharper 15% rise, underscoring healthy demand and strong fundamentals in Chennai’s retail market.

Chennai recorded ~3,700 residential unit launches in Q4-25, supported by sustained end-user demand across key suburban and peripheral locations. Southern submarkets led activity, with Suburban South I contributing 68% and Suburban South II accounting for 18%. Mid-segment dominated with 75% share, while high-end and luxury launches contributed 17%, reflecting steady traction for premium housing. For the full year, launches reached ~23,300 units, up 13% y-o-y, with southern submarkets driving 81% of supply. Capital values in premium locations appreciated 6–9% y-o-y, while mid-segment rentals posted a strong growth of 9–15% across key submarkets, underscoring healthy market fundamentals.

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.

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.