Chennai to add 12-13 million sq ft of premium office space in 2025-26

CHENNAI: Chennai is set to add about 12-13 million sq ft of premium office space between 2025 and 2026 following strong demand from corporates engaged in various sectors and industry, a report by real estate consulting firm CBRE South Asia Pvt Ltd has said.

Currently, the city is home to about 250 Global Capability Centres (GCC) that employ over 1.50 lakh professionals, constituting about 11 per cent of the total GCC talent. The presence of Global Capability Centres in Chennai is expected to touch 460 units by 2030, it said.

Strategic policies by the government including the Tamil Nadu Startup and Innovation Policy, Research and Development Policy, payroll subsidy programme for newly established GCCs are solidifying the city's role as a hub for innovation and talent, the study has revealed.

The real estate consulting firm CBRE, recently, released the report 'Tamil Nadu: The Epicentre of Capability and Innovation Leadership' which highlights the city's rising prominence as a key destination for GCCs.

As per the key findings, Chennai is ranked third in GCC leasing activity after Bengaluru and Hyderabad from 2022 to September 30, 2024.

"The city has witnessed GCC office absorption increasing from 1.4 million sq ft in 2022 to 2.3 million sq ft in the first nine months of 2024. GCCs would lease 3-3.2 million sq ft in 2025 in Chennai. By 2030, the GCC units in the city is expected to reach 450-460 units," it said.

The talent pool for the Global Capability Centres is expected to touch 3.20 lakh to 3.70 lakh by 2030.

"This growth is underpinned by a diverse talent mix of experienced professionals and fresh graduates, further strengthened by the state government's initiatives in workforce training and industry-academia collaboration," it said.

"The availability of robust infrastructure, proactive government policies and quality office development are aligned to meet the needs of global corporates. Between 2025-26, the city is set to add 12-13 million sq ft of premium office space tailored to enhance employee experience and offer state-of-the-art amenities," the report said.

Besides Chennai, other cities like Coimbatore, Madurai and Tiruchirappalli are emerging as 'key hubs' for manufacturing sector, providing significant investment opportunities to set up Global Capability Centres.