Chennai commercial real estate sees strong demand

According to property services firm DTZ Debenham Tie Leung, rental values in Chennai's CBD area have increased during the last quarter driven by strong demand particularly from the banking and financial services sector, lack of fresh supply and vacancy rates as low as 4%.

The base rentals in the CBD is reported to be around Rs.45 per sq.ft , while the off CBD area reported rentals of about Rs.40 per sq.ft and the suburban micro markets have reported rental values of approximately Rs.33 per sq.ft.

Old Mahabalipuram has witnessed a lot of build-to-suit and campus developments, and along with Guindy has become a preferred business district for IT / ITES occupiers.

A total of 20.47 million sft of commercial office space is to be developed in Chennai during the period 2006-2009.

Peripheral micro-markets have been the more active, accounting approximately for 80% of the total absorption recorded in 2006, with IT / ITES sectors contributing to dominant demand.


By INRnews Correspondent

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