CHENNAI: Chennai’s retail real estate market has continued its upward momentum in the first quarter of 2025, with the demand for high street space driving a 31% year-on-year increase in leasing activity, according to data put together by an international property consultant. A total of 170,000 square feet was transacted during the period, the report said.
Main streets remained the focal point of expansion for retailers, accounting for over 90% of total leasing. The North-West submarket - anchored by locations such as Anna Nagar and Perambur - led the market with a 38% share, while the Off-CBD (CentraL Business District) region including Arcot Road and Aminjikarai, followed closely at 37%, according to Cushman & Wakefield.
The fashion segment alone contributed 37% of total leasing - marking a nearly four-fold increase compared with same quarter last year, the report said.
By contrast, leasing in shopping malls remained subdued, with just 10,000 sq ft transacted in the quarter. Market observers cite limited availability of high-quality, vacant space as the primary constraint.
Rental growth was concentrated in high-demand high-street corridors, where limited supply and strong demand contributed to quarter-on-quarter increases of 3-4%. Among the most active areas were Usman Road (North and South), Adyar Main Road, Purasawalkam High Road, Pondy Bazaar, Velachery, and East Coast Road (ECR).