Two different reports – One done by Knight Frank India and the other by CBRE South Asia - have indicated that Chennai has retained its momentum when it comes to office space absorption. According to Knight Frank India’s latest report – India Real Estate: Residential and Office January - March 2024 (Q1 2024), Chennai observed office space transactions of 1.2 million sq ft during Q1 2024 witnessing a year-on-year (YoY) growth of 45%. Chennai recorded the highest rental value appreciation of 9% during the first quarter of 2024 to Rs. 67.0 sq ft/month. During Q1 2024, the major occupancy and leasing activity was driven by Global Capability Centres attributing 52% of office transactions in the city. India-Facing business and Flex office areas accounted for 28% and 19% respectively of the office transactions in the city.
CBRE South Asia in its report tilted ‘CBRE India Office Figures Q1 2024’ said that Chennai office space recorded 1.8mn. sq. ft. absorption during January to March 2024, while supply stood at 0.7 million. sq. ft. “Key sectors that drove absorption included flexible space operators (37%), BFSI (21%), technology (15%),” the report said. CBRE’s report mentioned that there were three key transactions during the quarter - Smartworks leased 177,000sq. ft. in Olympia Pinnacle, a leading flexible space operator leased 130,000sq. ft. in Olympia Cyberspace and Fiserv leased 50,000sq. ft. in Embassy Splendid Techzone - block 2. The report also highlighted that Chennai office space take-up was driven by small-sized (less than 50,000 sq. ft.) deals during January-March 2024.
RESIDENTIAL SALES
