Chennai’s Commercial Real Estate Outlook: Office & Retail Growth
Chennai’s commercial property sector is thriving on the back of strong economic growth. As a regional IT and industrial hub, the city is seeing increased demand for office space from global corporations and startups alike. Institutional investors are eyeing modern office towers and retail developments to capitalize on this momentum. Tangent Properties plans to participate by developing premium commercial projects and spaces tailored to Chennai’s market needs.
Office Space Dynamics
Chennai continues to attract major global firms. Knight Frank notes that Chennai ranked third nationwide in leasing by Global Capability Centers during H1 2024 (after Bengaluru and Hyderabad). This underscores Chennai’s appeal – driven by its skilled workforce and supportive policies – as a destination for IT/ITeS and finance hubs. The overall office leasing volume in the first half of 2024 was the second-highest ever for Chennai. This robust activity kept rents rising: average Chennai office rents climbed about 9% year-on-year in 2024. Tangent sees an opportunity in developing Grade-A offices in strategic corridors (e.g. IT parks on OMR and GST Road).
Flexible Workspaces and Co-Working
The commercial sector is also adapting to new work styles. Flexible co-working operators (WeWork, Awfis, etc.) have captured nearly 18% of Chennai’s leasing volume in H1 2024. Corporates are reserving more short-term space and flexible leases. Tangent can leverage this by designing commercial properties with dedicated co-working floors or flexible build-out options. Mixed-use projects that combine office towers with luxury retail and serviced apartments will meet the evolving needs of businesses and their employees.
Retail and Mixed-Use Hubs
Chennai’s growing consumer base is driving demand for upscale retail and entertainment zones. New malls and lifestyle centers in emerging suburbs are drawing attention. Radiant Assets observes that smart city planning encourages “integrated urban zones,” blending shopping, dining and living. Investors are looking at mixed-use complexes near IT corridors and transport nodes. Tangent’s commercial projects will emphasize modern retail frontage, green plazas, and digital amenities (Wi-Fi, smart parking) to create premium business environments.
