Chennai registers maximum traction for mid-size office spaces in Q3 2022: Knight Frank India
In their latest research, Knight Frank India noted that Chennai recorded an upsurge in transactions for office spaces between 50,000 to 1 lakh sq ft from 1,51,000 sq ft in Q2 2022 to 6,64,161 sq ft in Q3 2022. The city recorded maximum demand for mid-size office spaces in Q3 2022. Transactions for office spaces below 50,000 sq ft have witnessed constant increase across the three quarters in 2022, registering 3,09,191 sq ft in Q1 2022, 7,16,145 sq ft in Q2 2022 and 9,78,635 sq ft in Q3 2022. Whereas transactions for large office spaces witnessed decline from 3,15,000 sq ft in Q2 2022 to 1,50,725 sq ft in Q3 2022.
TRANSACTIONS AND SHARE OF TOTAL TRANSACTIONS
| TRANSACTION (SQ. FT) | SHARE OF TOTAL TRANSACTIONS | |||||
| <50000 | >50000<100000 | >100000 | <50000 | >50000<100000 | >100000 | |
| Q1 2022 | 309,191 | 211,488 | 469,500 | 31.23% | 21.35% | 47.42% |
| Q2 2022 | 716,145 | 151,000 | 315,000 | 60.58% | 12.78% | 26.64% |
| Q3 2022 | 978,635 | 664,161 | 150,725 | 54.56% | 37.03% | 8.41% |
Source: Knight Frank India
The share of percentage for office size split in Chennai was recorded as 54.56% (for office size of <50000 sq ft), 37.03% (for office size of >50000 to <100000 sq ft) and 8.41% (for office size of >100000 sq ft) during Q3 2022. This signifies a shift in demand witnessed in the market for office spaces between 50,000 to 1 lakh sq ft.
Commenting on the matter, Mr Srinivas Anikipatti- Senior Director – Tamil Nadu & Kerala, Knight Frank India, said, “Commercial market performance remained robust despite Omicron’s effects in the beginning of 2022 as offices reopened, leading to an increase in transaction activity. In 2022, the office market in Chennai had a significant number of transactions from IT businesses, followed by BFSI with transacted volumes increasing steadily over the past three quarters. This increase in demand for larger premises reflects the market’s elevated mood as occupiers look ahead to a better future and move past the pandemic.”