DLF, Embassy, Brigade to add 20 Million sq.ft. Space in Chennai

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While Chennai each year witnessed a gross absorption of 4.5 - 5 million sq.ft, the absorption fell from about six million sq.ft. in 2016 to just about four million sq.ft. in 2017 due to lack of supply, said Nair. “For the coming years also, we foresee the demand to remain stable. Some of the new demand trends include Global In House Centre (GICs) signing up for large space across technology and financial services sector and emergence of co-working spaces as an alternative stream of demand for office space,” Nair said. “Chennai continues to add to the net absorption of IT workforce, since the city is emerging as the SAS capital of this part of the country. We see the number of Global Capability Centres (GCCs) of international companies in the city growing, besides a lot of startups, engineering R&Ds and SMEs setting up bases here,” said K Purushothaman, senior director, Nasscom. While the situation in Chennai about demand and supply in the office space absorption has remained steady over the years, the sudden increase over the next couple of years is attributed to the SEZ benefits entering the sunset period. While the benefits are expected to end by 2020, units that move in or commit space by then, will continue to reap the advantages for the next 10-15 years. “The multiple benefits that IT SEZs offer is an incentive that both new units and existing ones on an ongoing basis would want to retain. And developers are confident of the builtup spaces getting absorbed,” said C Velan, executive director and chief executive officer of TRIL Info Park Ltd, which owns the Ramanujan IT City on OMR, close to Tidel Park.