Chennai’s office space market is expected to exceed 100 million square feet by 2026, up from 89 million sqft. Industry policies, investments, and growing sectors like BFSI, life sciences, and GCCs drive this growth. The life sciences sector saw a 60% increase in space absorption in 2024.
Chennai’s office space market is poised for rapid growth, with projections indicating it will surpass 100 million square feet by 2026, up from 89 million square feet. A report by CBRE South Asia and CII Tamil Nadu reveals that industry-focused policies and substantial investments are fueling this expansion.
Private equity investments have surged in the last two years, totalling $1.19 billion. While technology firms once dominated, the Banking, Financial Services, and Insurance (BFSI) sectors and life sciences companies are making significant strides. The life sciences sector, including biopharmaceuticals and diagnostics, absorbed 0.8 million square feet in 2024 alone, a 60% increase from the previous year.
Chennai is also emerging as a major Global Capability Centres (GCCs) player, ranking third in GCC leasing after Bengaluru and Hyderabad. US-based firms lead the way in establishing operations in the city, contributing to Chennai’s growing prominence in India’s commercial real estate landscape. Additionally, the city has become India’s second-largest data centre market, second only to Mumbai.
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