Chennai’s Office Space Market Thrives Amidst Growth in Residential Sector

Chennai’s office space absorption continues to showcase strong momentum, as indicated by reports from Knight Frank India and CBRE South Asia. According to Knight Frank India, Chennai witnessed a significant year-on-year growth of 45%, with 1.2 million sq ft of office space transactions in Q1 2024. Additionally, the city experienced a notable 9% rental value appreciation during the same period. CBRE South Asia’s report highlighted that flexible space operators, BFSI, and technology sectors were key drivers of office space absorption in Chennai, with notable transactions including leases by Smartworks, a leading flexible space operator, and Fiserv.

Meanwhile, Knight Frank’s report also underscored growth in the residential sector, with increased sales volume and launch activity, reflecting buyers’ confidence and long-term commitments in the market. Shishir Baijal, Chairman and Managing Director of Knight Frank India, expressed optimism about continued growth in both residential and office sectors, driven by stable economic policies and favorable domestic conditions.