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In another 3 years, key micro markets like OMR would get 12 million sqft of office space
Posted on: 01/Nov/2018 9:56:56 AM
In the Chennai city places like pre toll OMR, Perungudi- Sholinganallur stretch on OMR, Mount- Poonamalle High Road etc are very important and these places have many commercial establishments. It is now brought out that the above mentioned key micro markets in Chennai would witness the supply of 12 million sq ft office space in the next 2 to 3 years of time. The sector that would be making its presence felt highly in the above mentioned places would be IT/ITES sector. This would be followed by other sectors such as automotive, banking, financial services and insurance (BFSI), research and consulting sectors etc.
On Wednesday, 31st October 2018, a report titled ‘Destination 2020’ was released by reality consultant CBRE in Chennai and the report stated that much of the space would come up in the projects promoted by K. Raheja Corporation , Embassy and RMZ group. As per the report it is clear that office sector would benefit from the consolidation of existing corporate and entry of new players in the global in sourcing centres plus in the flexible workspace solutions.
CBRE chairman (India and South East Asia), Mr. Anshuman Magazine, spoke about how Chennai city has got right ingredients like manpower, physical and social infrastructure to sustain long term investments. He then spoke about how Chennai was a crucial market and how close to 40 percent of hiring was done from the southern markets especially Chennai. Mr. Anshuman Magazine explained the importance and the drive growth for CBRE and said sectors like technology, affordable housing plus others like warehousing, industrial, retail, capital markets and government advisory are expected to the drive growth for CBRE.
Executive director, Mr. Preetham Mehra expressed his thoughts and said in places like Bengaluru and Hyderabad the IT/ ITES sector drives the commercial activities but in Chennai the IT/ITES sector is not the only one. There are other sectors like manufacturing, banking, financial services and insurance sectors etc that play their part in driving the commercial activities. The commercial market is stable in Chennai city. The report stated that with GST introduction, Chennai has established firmly as destination of choice for warehousing investors, operators and occupiers due to the presence of multiple seaports. The report threw light on the presence of international airport and excellent roadwork in Chennai.
As per the managing director (advisory and transaction services), Mr. Ram T. Chandnani, in India in the first half of 2018, 10 million sq ft of warehousing space was leased out and out of this 1 million sq ft was transacted in Chennai. He then revealed that the competition from other cities was getting tougher and cities like Pune and Hyderabad have overtaken the Chennai city. He spoke about how Bengaluru was the market leader by a huge margin. He explained the reason for Chennai city’s poor growth and said the slow approvals pulled down the growth. He later pointed out the scarcity of A- grade ready-to- use office space in the city of Chennai. Mr. Ram. T. Chandnani finally said the companies look out for other alternatives like Hyderabad, Bengaluru etc.
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