Demand for commercial space in Chennai's suburbs
Anna Salai and Nungambakkam are no longer on the growth list for commercial space. Areas occupying top spots are R.K. Salai, Egmore, Ambattur, Guindy and Porur. Commercial space is also being lapped up in city outskirts according to property consultants Trammel Crow Meghraj.
26 million sq.ft of commercial space is under construction with around 16 million sq.ft ready for occupancy within a year. The lion share of demand for new office space comes from IT and ITES companies. Demand is moving towards the suburbs due to better infrastructure, larger floor area, lower rentals and parking facilities. Vacancy rates in Chennai of less than 5% reflect the high demand for commercial space.
Commercial rental and purchase values are going up with figures showing a healthy growth. Grade A office space in the central business district areas range from Rs. 572 to Rs. 758.1 ($12.3 to $16.3) per sq ft per annum for lease and Rs. 4,130 to Rs. 5,167 ($88.8 to $111.1) per sq ft for sale. Office space in the IT corridor is at Rs. 423.24 to Rs. 483.7 ($9.1 to $10.4) per sq ft per annum for lease and Rs. 2,530 to Rs. 3,032 ($54.4 to $65.2) per sq ft. for sale. Rentals and capital rates in suburbs are from Rs. 302 to Rs. 409 ($6.5 to $8.8) per sq ft per annum and Rs. 2,023 to Rs.3,032 ($43.5 to $65.2) per sq ft, respectively.
By INRnews Correspondent
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