presents

The

Commercial Real Estate sector

of Chennai

A study by realty consultant Jones Lang LaSalle

shows that investment on commercial properties

in Chennai has revived again after a small hiatus.

The city has demonstrated tremendous

opportunities for career and employment across industries. The establishment of the

IT/ITES corridor, chain of automotive and manufacturing organizations and other diverse

industries has furthered the job prospects of Chennai thereby making the city a lucrative

market for Real Estate. Besides, attracting huge crowds of people for investing in residential

real estate, this market is also conducive for Commercial Real Estate development. This is

because there continues to be consistent demand for commercial space for rent/sale in

Chennai.

IT Industry, the backbone

IT/ITES is perhaps first of the modern industries that set its impressions in the city. Soon,

commercial properties in Chennai did not just increase in number but also in terms of

quality, architectural style and functionality.

Commercial spaces today are synonymous with state-of-the-art architecture, are

multidimensional in usage and attract global attention in terms of design and resources

used. Chennai’s IT/ITES corridor at OMR and ECR rapidly developed into a major self-

sufficient

hub that is complete with all major amenities that any city’s Central Business District (CBD)

enjoys. Residents and migrating population shifted to this region and bought apartments in

Chennai, closer to their places of work. Large scale infrastructural development and growth

of urban amenities soon followed suit thereby pushing Real Estate prices higher.

Similarly, several other regions of Chennai attracted different kinds of industries both

domestic and international. Chengalpet-Sriperumbudur belt was once a very remote region

near Chennai that hardly observed any kind of realty growth. What once was barren and/or

agricultural land is today replaced by high rises, integrated townships, opulent farmhouses

and modern villas. Thanks to the burgeoning automotive/manufacturing belt of this region.

Today, a drive on this national highway offers substantial glimpses of the kind of

development Sriperumbudur is facing and is expected to witness. It is no wonder that many

international and renowned Real Estate builders are constructing contemporary living and

retail spaces in this part of the constantly expanding city.

Advanced Infrastructure

Real Estate builders construct state-of-the-art commercial spaces that are complete with

contemporary amenities conducive to execution of modern businesses. Seamless

communication networks, multi-layer safety systems, optical fibre connectivity, sprawling

business centers, food courts, ATMs, fitness centers and other fundamental and lifestyle

amenities have emerged as a significant need. Commercial spaces available for rent in

Chennai that do not possess these facilities have been wiped away by more advanced

architectures.

Further, landscaping and elements of aesthetics add to the appeal of these commercial

properties in Chennai. Combination of commercial development and infrastructural upgrade

make South and West Chennai the most desirable destinations when it comes to Real Estate

investment.

As per Mercer’s 2012 report, Chennai ranks fourth in

Quality of Living Index and third with respect to

infrastructural development. High rise buildings, premium

apartments, luxury villas and state-of-the-art commercial space for rent as well as sale all

have their own share in Chennai with a promising future.

The Second set of Commercial properties

As residential and industrial properties are on the rise in different pockets of Chennai, other

kinds of commercial properties such as retail centers, schools, hospitals, entertainment

parks and hotels are not far behind.

There has been a lot of alacrity in

the construction of these

destinations that complement the

urban lifestyle of modern residents.

Also, there has been a dramatic

increase in the quantum of

commercial Real Estate investment

thereby accelerating the economy of

Chennai. Valasaravakkam,

Poonamallee and RA Puram are other areas within the city that are not too far away from

the CBD yet enjoy the serenity and absence of congestion only the outskirts can offer.

Financial prospects of Commercial space

With the quantum of industrialization the city is being subjected to in the current scenario,

commercial space for rent in Chennai is perhaps the wisest thing to do for long term

advantage cites some industry experts. Entry into Chennai region is not just made by

domestic organizations but also by a host of international companies and businesses. There

is wide scope since these industries range from manufacturing to healthcare and chemicals

to IT/ITES. Several units have become operational in the past decade and a drive down

Sriperumbudur, GST Road and OMR/ECR stand testimony to this colossal growth.

IT and ITES organizations have perhaps taken the icing on the cake. Together, the industry

has changed the façade of Chennai and made it a desired location for commercial

development. With their advent, premium Real Estate builders began construction of diverse

commercial properties in Chennai, including IT parks, shopping malls and entertainment

destinations in close proximity to the IT corridor. With IT Parks and other commercial spaces

sprouting in the suburbs of Chennai, residential real estate market has also begun to

flourish. This chain effect has managed to accelerate the city’s rising economy.

If you have witnessed realty development in Chennai in the last couple of decades, then you

are no stranger to the increase in demand and availability of commercial space for rent in

Chennai in the recent times. Chennai is the capital of Tamil Nadu and one of India’s

metropolitan cities. In the recent decades, the city has transformed from being a cultural

capital to a career destination that attracts people not just from neighboring states but also

from the rest of the country and world at large. Today, the percentage of expatriate

population rivals the numbers in any other Indian metro. Employment opportunities are

wide ranging and abundant thus inviting interest of people from every part of the world.

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