Chennai’s Industrial & Logistics Real Estate: Growth Engine
Chennai’s industrial and warehousing sector is expanding rapidly, fueled by manufacturing, e-commerce, and infrastructure development. The city’s strategic port access and robust auto and electronics clusters drive demand for modern logistics parks and factories. Tangent Properties recognizes this momentum and is exploring industrial-park projects, targeting institutional investors seeking exposure to this growth area.
Warehouse and Factory Demand
The demand for built-to-suit factories and large warehouses in Chennai has surged. Savills reports that 5.0 million sq.ft. of industrial and warehousing space was absorbed in 2024, up from 4.5 million sq.ft. in 2023. The largest share (43%) of this demand came from manufacturing companies, with another 31% from third-party logistics (3PL) operators. Key industries include auto component manufacturers, pharmaceuticals, and consumer goods. With Chennai’s connectivity (port, highways) and government incentives, Tangent sees strong returns potential in industrial developments, especially in peripheral zones like Kattupalli and Ponneri.
Land and Infrastructure Corridors
The Chennai-Bengaluru Industrial Corridor (CBIC) and the upcoming Chennai Peripheral Ring Road are enhancing land supply. New logistics parks are emerging along NH-16 and near the Chennai Outer Ring Road. Improved infrastructure means shorter lead times for goods movement to ports and airports. Tangent is evaluating projects in these corridors, offering plug-and-play facilities with smart features (solar power, EV charging for fleets, automated inventory systems).
Investor Interest
Institutional capital is pouring into Chennai’s industrial real estate. Both domestic and foreign funds see India’s logistics sector as a hedge against market volatility. According to industry analysis, Chennai’s relatively lower vacancy and higher yields (compared to Western markets) make it an attractive play. Tangent’s tech focus can be a differentiator here as well: by implementing warehouse management systems (WMS) and IoT monitoring in new projects, Tangent can attract premium tenants and achieve higher long-term occupancy.
