Mumbai (Maharashtra) [India], October 11 : Chennai's office space market has seen an extraordinary 75-fold increase, skyrocketing from just 1 million sq. ft in 1999 to a 76.5 million sq. ft by the first half of 2024, according to JLL's latest report.
Chennai's real estate landscape has transformed over the last 25 years. This rapid growth has been primarily fueled by the IT/ITES sector and the rise of Global Capability Centers (GCCs), cementing Chennai's status as a major economic hub.
The residential sector has experienced equally remarkable growth, with housing units surging 27-fold, from 10,100 in 1999 to 275,000 by mid-2024.
Property values have soared in tandem, with residential prices increasing 10 times over the same period, now ranging from Rs5,000 to Rs25,000 per sq. ft, reflecting Chennai's appeal as a key investment destination.
Siva Krishnan, Senior Managing Director (Chennai & Coimbatore), Head of Residential Services at JLL India, said"Chennai's transformation over the past 25 years is nothing short of remarkable. The data clearly shows the city's evolution from a manufacturing hub to a diversified economic powerhouse."
He added, "With continued infrastructure development and strategic policies in place, Chennai is well-positioned to capitalize on emerging trends in technology, sustainability, and urban living. The city's resilience and adaptability bode well for its future as a key player in India's economic landscape."
Chennai's rise extends beyond residential and office spaces. The logistics and industrial sector has expanded 50-fold, from 1 million sq. ft in 1999 to 50 million sq. ft in 2024, driven by its strategic location and Tamil Nadu's push for manufacturing, including the electric vehicle (EV) sector, which now accounts for 40 per cent of the country's EV production.
The city's retail space has also grown sixfold, from 1.17 million sq. ft to 7.1 million sq. ft in the last 25 years, reflecting the rise in consumer spending and affluence.
One of Chennai's most significant developments is its emergence as a major data center hub. Now the second-largest data center market in India, with a colocation capacity of 88 MW, the city is poised to receive USD 1.54 billion in investments in the next two years, comprising 27 per cent of India's total data center investments.
The city's infrastructure, including six cable landing stations, robust power availability, and a skilled talent pool, makes it a prime destination for cloud and data storage solutions.