Chennai’s Grade-A Office

Chennai’s Grade-A Office Market Sees Robust Demand, Surges in Absorption in Q1 FY2026 0
- Industry News
- September 1, 2025
Chennai’s commercial real estate market is experiencing strong momentum, with 4.9 million sq. ft. of new Grade-A office space added in FY2025 and 1.3 million sq. ft. more in Q1 FY2026. Net absorption surged to an impressive 3.1 million sq. ft. in Q1 FY2026, signalling healthy demand led primarily by IT-BPM and engineering & manufacturing sectors. This drove occupancy levels up to 90.6% by June 2025, expected to hold steady through FY2026. Emerging micro-market Pallavaram is attracting IT/ITES firms, with half of the new supply concentrated there, 21% pre-leased already. Rental values in key micromarkets have grown steadily at a 3–4% CAGR over the last five years, with similar growth projected this fiscal year.
READ MORE