Once overshadowed by metropolitan giants, Chennai is now making its mark in India’s competitive office real estate arena. Despite being traditionally overlooked, the southern city is experiencing a remarkable surge, outpacing major markets like Mumbai, Delhi-NCR, Bengaluru, and Hyderabad.
With an impressive uptake of 6.5 million square feet (msf) of office space in the first nine months of 2023, Chennai has not only surpassed its entire 2022 consumption but also ranks alongside major metropolitan hubs in India. This surge, accounting for 15% of India’s total office space absorption, demonstrates Chennai’s resilience in the face of global headwinds.
Diverse factors contribute to Chennai’s newfound appeal, including its thriving economy, skilled talent pool, robust infrastructure, and comparatively lower rental costs. Major developers like L&T Realty, DLF, RMZ, and Olympia Group are spearheading expansive office space projects, attracting leading multinational corporations (MNCs) across various sectors.
Unlike other markets dominated by specific industries, Chennai offers a more diversified landscape, catering to a wide range of businesses beyond just IT. Industries like banking, logistics, manufacturing, engineering, SaaS, and global capability centers (GCC) are driving demand for office spaces in the city.
Chennai’s stability and level-headed market dynamics ensure resilience even in challenging times, distinguishing it from other volatile markets. The city’s educational prowess, skilled workforce, and superior living standards further enhance its attractiveness to MNCs, leading to significant investments and expansions.
With global giants like Standard Chartered Global Business Services (StanChart GBS) establishing their largest campus in Chennai, the city’s stature continues to grow as a preferred destination for businesses seeking sustainable growth and stability in India’s vibrant office real estate market.
