Chennai's office space absorption grows despite supply crunch

Bangalore and Delhi NCR accounted for over 50% of annual leasing activity

Office space absorption in Chennai has seen momentum during the quarter ended December 2017 despite the limited availability of top-grade supply in preferred micro markets. The key absorption was driven by the IT industry, according to latest report.

According to a report by real estate consulting firm CBRE South Asia, low vacancy levels in certain parts of the IT hub of Old Mahabalipuram Road (OMR) led to the decline in quarterly leasing activity. Rent increased across all segments on an annual basis due to the sustained interest from occupiers for office space. 

This trend is in tune with the overall trend in