The office stock in Chennai is likely to cross 100 million sq ft by the end of 2026. Total office stock in Chennai currently stands at over 89 million sq ft, the fifth largest in India as of December 2024, says a report.
CBRE South Asia Pvt. Ltd, India’s leading real estate consulting firm, and CII Tamil Nadu on Thursday released a joint report titled, ‘Tamil Nadu: The State of Unlimited Possibilities’, at the Infrastructure Summit 2025 The report points out that PE investments in Chennai’s office assets touched around $1.20 billion in the last two years (2022-24).
The growing demand for modern office spaces has led to a surge in campus-style developments in recent years in Chennai, appealing to both global and domestic corporates.
The influx of capital and the entry of prominent developers have facilitated the construction of high-quality office buildings, providing various space options for occupiers. The strong market confidence, coupled with an efficient public transportation network, has resulted in a widespread distribution of office activity across the city. Chennai’s office market, once dominated by the technology corporates, is witnessing a shift towards the BFSI and life sciences sectors. Existing technology firms in the city have established a strong infrastructure, creating an attractive environment for other industries, the report said.
Chennai is positioning itself as a major hub for Global Capability Centres (GCCs) and is ranked third in GCC leasing after Bengaluru and Hyderabad (2022-24). US firms were the most active in setting up GCCs during this period.
Tamil Nadu, currently hosting over 250 GCCs, presents a compelling proposition for businesses seeking to establish or expand their global operations. GCC leasing in Chennai stood at around 2.9 million sq ft. in 2024. With its attractive incentives, strong talent pool, robust corporate ecosystem, and abundant quality office space, the state has solidified its position as a preferred destination for GCCs, the report said.