Chennai’s office stock set to exceed 100 million square feet by 2026 end
- IBEF
- February 21, 2025
Chennai’s office stock is set to exceed 100 million square feet by the end of 2026, up from 89 million square feet as of December 2024, making it India’s fifth-largest office market, according to a Coldwell Banker Richard Ellis (CBRE)-Confederation of Indian Industry (CII) Tamil Nadu report. Private equity investments in Chennai’s office assets crossed Rs. 10,308 crore (US$ 1.19 billion) between 2022 and 2024, reflecting strong institutional interest. The city's demand for office spaces has led to campus-style developments, attracting global and domestic corporations. A strong public transportation network and increased developer participation have further boosted office construction. Tamil Nadu's vision to become a Rs. 86,63,000 crore (US$ 1 trillion) economy by 2030, supported by its industrial and services sectors, is expected to drive further innovation and investment in cities like Coimbatore, Madurai, and Tiruchirappalli.
Once dominated by technology firms, Chennai’s office market is witnessing significant expansion in the banking, financial services, insurance (BFSI), and life sciences sectors. BFSI companies focus on digital infrastructure and cloud technology. At the same time, the life sciences sector absorbed 0.8 million square feet in 2024, marking a 60% YoY increase. Chennai is also emerging as a key destination for Global Capability Centres (GCCs), ranking third in leasing after Bengaluru and Hyderabad, with US firms leading GCC investments from 2022 to 2024. Tamil Nadu hosts over 250 GCCs, leasing approximately 2.9 million square feet in 2024. Additionally, Chennai is India’s second-largest data centre market after Mumbai, with a 220-megawatt capacity as of December 2024, accounting for 20% of India’s total data centre capacity. Key hubs include Ambattur, Siruseri, and Oragadam, benefiting from the city’s coastal location, strong Information Technology (IT) presence, and bandwidth availability.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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