Chennai‘s real estate has changed a lot in the last 25 years. A new study from JLL report says office space in Chennai’s real estate has observed a 75-fold increase in leasing at 76.5 million sq.ft by H1 of 2024.
Chennai’s real estate sector witnessing expansion in every segment:
Driven by the IT/ITes industry and the building of global capacity centers, Chennai’s real estate market has seen notable expansion especially in the office category.
Emerging as a major GCCs(Global Capability Centers) base, Chennai has greatly changed the economic scene in Tamil Nadu.
Claiming 15% of the national footprint, the state presently contributes for 12% of India’s total GCC market share.
Chennai’s presence is heavily visible in the banking, financial services, and insurance (BFSI) sectors.
Especially, Tamilnadu hosts 60% of the IT operations of fortune-listed BFSI organizations.
Over the past 25 years, Chennai’s real estate has undergone remarkable changes.
The statistics amply illustrate the city’s development from an industrial center to a multifarious economic powerhouse.
“Chennai is positioned to profit on new trends in technology, sustainability, and urban life given ongoing infrastructure development and strategic policies in place. Said Siva Krishnan, Senior Managing Director (Chennai & Coimbatore) Head-Residential services India, JLL.
He added, Chennai’s adaptability and fortitude point well for its future as a major player in India’s economic scene.
Chennai’s Residential Sector Boom:
In addition, the residential sector has developed to greater heights.
In the first half of 2024, there are 2,75,000 homes for sale in Chennai. This is 27 times the number of units in the city in 1999, when there were 10,100.
With this increase, property prices have gone up by a huge amount.
During the year 1999, the price per square foot ranged anywhere from 850 to 2,500 rupees. As of the year 2024, it has already reached a range of between 5,000 and 25,000 rupees.
Following the completion of the 2021 Covid phase, there has been a rise in the number of plotted expansion projects in the suburbs of the city. This is because of a greater number of end users in the plots sector.
The market is more organized now that the Real Estate Regulatory Authority (RERA) is in the picture.
This has been done by implementing a number of things better, such as making things more open, accountable, and clear about when projects need to be finished.
One might observe more and more residential building projects along metro rail tracks.
Furthermore, included in 2024 are major construction projects such Parandur and the Kilambakkam Bus Terminus.
Growth in the industrial and logistics sectors of Chennai:
There has also been amazing progress in the logistics and industrial sectors.
The stock has grown fifty times larger than it was in 1999, going from one million square feet in 1999 to fifty million square feet in 2024. This represents a growth of fifty times.
This expansion is feasible due to the fact that the city is located in a favorable location and the government provides support for enterprises and commerce.
Tamil Nadu accounts for almost forty percent of the nation’s electric cars manufactured.
The market is steady, and on average over seven million square feet of space are occupied annually.
The report has stated, Grade A makes over seventy percent of the stock, so it is attracting more interest than the other grades.
The rise of retail space in Chennai’s real estate market:
The report shows that retail space in Chennai has grown from 1.17 million square feet in 1991 to 7.1 million square feet in 2024, indicating a sixfold increase over the last 25 years. This growth shows that the city is getting better off, and people are changing with respect to their choices.
Taking the lead as a top data center:
One of the most important changes is that Chennai has become a key spot for data centers.
As of now, the city has more colocation capacity than any other market in India. The city is well-equipped to benefit from the ongoing digital economy.
Chennai is quickly becoming a top choice for data centers because it has a lot of skilled workers, good power supply.
With two data centre hubs—Ambattur and Siruseri—more than 20 km apart, the city enables cloud players to implement a three-site approach with the opening of a new data center zone.
The expansion of the data center hubs in the city is supposed to be influenced by new cable landings.
Chennai’s Data Center industry is predicted to receive over $ 1.54 billions of investment over the next two years, or 27% of total investment in India.
Looking ahead, Chennai is positioned to profit on growing trends in urban living, sustainability, and technology. Together with ongoing infrastructure development and strategic strategies, the city’s durability and adaptability help to point to its future as a major actor in India’s economic scene.