CHENNAI: The city is preparing for a fresh wave of office demand, with 12 million to 13 million sqft of premium space added in the last two years, as the global capability centres (GCCs) have expanded. The state is sharpening its pitch to multinational firms.
Anshuman Magazine, chairman and CEO of CBRE India, Southeast Asia, Middle East, and Africa, estimates the number of the capability centres in the city could double from nearly 250 at present to 450-460 by 2030, with the associated talent pool rising 1.4 times to 320,000-370,000 professionals.
Tamil Nadu’s targeted policy push, spanning GCC-specific frameworks and incentives for fintech, research and development, start-ups and semiconductors, is underpinning both new investment decisions and expansion plans by existing occupiers, he said.
The supply pipeline comes at a time when Chennai is consolidating its position as a steady, diversified office market. The city recorded 1.9mn sqft of leasing in the March quarter, part of a record 20.7mn sq ft absorbed across India.
The demand is qualitative and no longer driven primarily by cost arbitrage. Instead, leasing is being anchored by sectoral depth, particularly in engineering and manufacturing, banking and financial services, and technology.
S Sridharan, executive committee member, CREDAI National, said the city requires a stronger pipeline of office space to keep pace with sustained demand, driven largely by the deep talent pool. This would require a policy push by the government towards greater vertical development, including review of FSI and setback norms to enable higher-density construction.
GCC activity remains central to this momentum. Leasing of 0.6 million sqft in the first quarter reflects a combination of new entrants testing the market - often through flexible workspace - and incumbent firms scaling up in integrated office parks. As these centres mature, consultants expect a transition towards higher-value roles, including global decision-making and strategic functions, Magazine told TNIE.
While firms with exposure to West Asia form part of the occupier mix, Chennai’s leasing momentum is not tied to any single geography, he said. US-headquartered companies remain dominant, accounting for roughly two-thirds of GCC establishments in recent years, but interest from Europe, the Middle East and Asia-Pacific is rising, he added.