Office space rentals in Chennai see growth, recording 2.6 million square feet in the first quarter of 2025

The report also highlights that Chennai’s office space occupancy in 2025 is primarily driven by small transactions (less than 10,000 square feet). |Picture source: R. Ragu

Real estate consulting firm CBRE South Asia Private Limited said office space rentals in Chennai witnessed growth, with 2.6 million square feet in the first quarter of 2025, compared with 1.8 million square feet in the same period in 2024.

The consulting firm said in its recent report, “India CBRE India Office Q1 2025” that on January 3, 2025, the key sectors that drive absorption include technology (32%), fast-moving consumer goods (FMCG) and retail (19%) and flexible space operators (14%).

Between January 2025 and March 2025, the city recorded several famous transactions. Tata Consulting Services received a 632,280 square foot lease at ozone Techno Park, occupied 113,290 square foot in ITP Ascendas 1, and a well-known FMCG company rented 465,450 square foot on the same ITP ASCENDAS 1. Transaction (less than 10,000 square feet).

“The key trend shaping city office rentals is its appeal to Indian and global companies,” said Anshuman Magazine of India, Southeast Asia, the Middle East and Africa. He then added that Chennai also witnessed the emergence of campus-style office developments, which quickly gained appeal due to occupants’ preference for modern, integrated workspaces, as well as increased occupants’ preferences.

Mr Magazine said: “As of December 2024, as of the end of 2026, the office share price exceeded 89 million square feet and forecasts a forecast of over 100 million square feet, Chennai is becoming one of the country’s top office destinations.”

He also stressed that the city has secured its position as a global leading center of capability (GCC) center, ranking third in GCC Leasing (2022-24), with 2.9 million square feet leased in 2024 alone.

Mr. Magazine added: “Through the GCC-specific and sector-centric policies, the government’s positive position further strengthens Chennai’s competitiveness and becomes the preferred destination for global businesses.”