3 weeks ago
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Chennai’s residential marketplace saw the motorboat of 3,700 lodging units successful the archetypal 4th of 2026, with Suburban South-II emerging arsenic the top-performing submarket, accounting for 38% of the full launches, mostly driven by continued momentum successful the Manapakkam area.
The Suburban West and Suburban North besides recorded accrued enactment during the quarter, accounting for 18% and 17% of launches, according to details shared by akefield.
Precincts specified arsenic Perungalathur, Madhavaram and Nerkundram reportedly recorded steadfast traction. Supply during the 4th remained heavy skewed towards premium housing, with high-end and luxury segments unneurotic accounting for 61% of full launches, marking a crisp 253% quarter-on-quarter and 28% year-on-year increase. High-end developments unsocial contributed 44% of the wide supply, portion luxury projects accounted for 17%.
Capital values continued to witnesser steadfast appreciation crossed cardinal micro-markets, with the high-end conception registering a 6–11% year-on-year summation successful Central and Off-Central I & II submarkets. The mid-segment recorded adjacent stronger maturation of 11–18% crossed Off-Central II and suburban locations, reflecting sustained end-user demand.
Office market
The study by Cushman &Wakefield besides pointed retired that Chennai’s bureau marketplace recorded a gross leasing measurement (GLV) of 1.66 cardinal sq. ft. successful the archetypal 4th of 2026, reflecting an 18% quarter-on-quarter and 16% year-on-year decline, mostly owed to a precocious basal effect from beardown leasing enactment witnessed successful erstwhile quarters.
Peripheral South-west emerged arsenic the starring submarket during the quarter, accounting for 31% of leasing enactment (523,077 sq. ft.), followed by Peripheral South with a 25% stock (415,724 sq. ft.). The metropolis besides witnessed 1.62 cardinal sq. ft. of caller completions, portion nett absorption stood astatine 1.04 cardinal sq. ft., down 38% q-o-q. Despite moderated absorption, vacancy levels continued to improve, declining by 209 ground points year-on-year.
IT-BPM remained the superior request operator with a 31% stock of leasing activity, followed by Flexible Workspace operators astatine 19% and Engineering & Manufacturing firms astatine 15%. Global Capability Centres (GCCs) continued to play a pivotal relation successful driving occupier demand, contributing 55% of quarterly leasing — the highest stock recorded to date.
Retail market
Chennai’s retail marketplace recorded leasing enactment of 0.14 cardinal sq. ft. successful Q1 2026, with main streets continuing to predominate occupier demand, accounting for 89% (0.12 cardinal sq. ft.) of the full leasing volume. On a sectoral basis, manner emerged arsenic the starring request driver, contributing 40% of main thoroughfare leasing activity, portion section stores and F&B each accounted for 17%. Domestic brands continued to anchor leasing momentum crossed the city’s retail landscape. Westside leased astir 21,000 sq. ft. connected PTR Road, portion Zudio secured astir 12,000 sq. ft. successful the aforesaid micro-market. In Adyar, Easybuy leased adjacent to 10,000 sq. ft., further reinforcing request from retail brands successful Chennai’s high-street retail ecosystem.
