A transformational journey

The real estate landscape in Chennai has undergone a dramatic transformation in the past 25 years. From a mere 0.5-1 million sq. ft of office space in 1999 to touch 76.5 million sq. ft by the end of 2024, Chennai has witnessed a staggering 75-fold increase in office space alone. A similar growth trajectory has been witnessed across all segments of real estate in the city. The office segment growth has been largely driven by the IT/ITES sector and the rise of Global Capability Centers (GCCs). Chennai's rise as a GCC hub is reshaping Tamil Nadu's economic landscape. The state now commands an impressive 12% of India's overall GCC market share, with a particularly strong foothold in the Banking, Financial Services, and Insurance (BFSI) sector, where it claims 15% of the national footprint. This dominance is further underscored by the fact that 60% of the technology operations of Fortune-listed BFSI companies have chosen Tamil Nadu as their base.
 

Chennai's real estate sector has seen remarkable growth across various segments:

Residential: Housing units increased 27-fold from 10,100 in 1999 to 275,000 in 2024. Property values rose from INR 850-2,500 to INR 5,000-25,000 per sq. ft. Post-Covid, plotted developments surged in suburbs. RERA implementation improved market transparency and accountability.

Logistics and Industrial: Stock expanded 50-fold from 1.0 million sq. ft in 1999 to 50 million sq. ft in 2024. Tamil Nadu accounts for 40% of India's EV manufacturing. 70% of stock is Grade A.

Retail: Space grew 6-fold from 1.17 million sq. ft to 7.1 million sq. ft, reflecting rising affluence.

Data Centers: Chennai is now India's second-largest Data Center market with 88 MW capacity. Two major hubs, Ambattur and Siruseri, support cloud players' strategies. Expected USD 1.54 billion investment in the next two years represents 27% of India's total DC investment.

For more insights, read the full report.