Chennai MarketBeat Reports

Chennai recorded gross office leasing volume (GLV) of ~2.02 MSF in Q4-25, supported by strong occupier activity across key corridors. IT-BPM dominated with 43% share, while flex operators (20%) and BFSI (17%) continued to expand. GCCs remained a major growth engine, accounting for 51% of Q4 leasing and 41% annually, the highest ever for Chennai. Net absorption hit a record 7.02 MSF for the year, fueled by healthy pre-commitments in new Grade A supply. Vacancy held steady at ~12%, while rentals rose 2% q-o-q and 6% y-o-y.

Chennai recorded retail leasing volumes of ~0.19 MSF in Q4-25, up by 18% q-o-q, taking annual leasing to ~0.68 MSF. Main streets dominated with 92% share, led by Peripheral South (46%), Suburban South (28%) and Off-CBD (17%). Key locations such as OMR, Adyar, T. Nagar and Anna Nagar witnessed strong traction. Department stores led with 30% share, followed by fashion (20%) and F&B (18%), all driven largely by domestic brands. Mall leasing stood at ~0.01 MSF, with Grade A vacancy remaining tight at 1–2%. Main street rentals appreciated 3–5% q-o-q, with Cathedral Road posting a sharper 15% rise, underscoring healthy demand and strong fundamentals in Chennai’s retail market.

Chennai recorded ~3,700 residential unit launches in Q1 2026, with Suburban South II leading at 38%, followed by Suburban West (18%) and Suburban North (17%). Premium housing led supply with 61% share, shot up 253% q-o-q and 28% y-o-y, as high-end and luxury launches made up 44% and 17% share respectively. The mid-segment contributed 37%, while affordable housing remained limited. High-end capital values rose 6-11% y-o-y, mid-segment by 11-18%, and mid-segment rentals increased 9-16% y-o-y, led by strong demand in key submarkets.

Chennai recorded 3.1 MSF of warehouse leasing in H2‑25 – a strong 50% increase over H1 – led by robust 3PL demand. Periyapalayam and Sriperumbudur contributed nearly 70% of activity, with annual leasing rising to 5.2 MSF. Industrial leasing remained healthy at 2.1 MSF, driven by strong E&M and automobile requirements, with Sriperumbudur and Oragadam leading take‑up. Rentals saw 5–11% YoY appreciation in select northern submarkets, supported by sustained demand.

Cushman & Wakefield India Capital MarketBeat reports analyze quarterly economic and commercial real estate activity including supply, demand and pricing trends at the market and submarket levels.