Chennai records office transactions of 2.6 mn sq ft, Residential sales in the mid segment category occupied 43% of total sales in the city: Knight Frank India
Chennai: Knight Frank India, in their latest report – India Real Estate: Residential and Office Q3 2024 (July – September 2024) cited that Chennai observed office space transactions of 2.6 mn sq ft during Q3 2024. The city witnessed a 35% increment in the transaction volume when compared to previous year.
The average transacted rent of the city grew by 10% YoY to INR 69/ sq ft/month during the quarter.
Source: Knight Frank Research
Chennai recorded the highest office leasing activities from GCCs and Third Party IT Services at 1.0 mn sq ft respectively during Q3 2024 and constituted 38% of the total office space transactions each in the city, followed by India Facing Business and Flex at 15% and 9% respectively.
| End-User Licensee/Buyer | Third-party IT Services | GCC | India Facing Business | Flex | Total |
| Area transacted in mn sq ft | 1.0 | 1.0 | 0.4 | 0.23 | 2.63 |
Source: Knight Frank India
The residential market of Chennai witnessed a total of residential sales volume of 4,105 units with a YoY growth of 6%. The city witnessed 4,273 units being launched in the quarter registering YoY growth of 7%.
Market Summary: Top Eight Indian Cities
| Sales | Launches | |||||
| City | Q3 2023 | Q3 2024 | % Change (YoY) | Q3 2023 | Q3 2024 | % Change (YoY) |
| Mumbai | 22,308 | 24,222 | 9% | 19,512 | 23,677 | 21% |
| NCR | 13,981 | 12,976 | -7% | 16,108 | 13,128 | -19% |
| Bengaluru | 13,169 | 14,604 | 11% | 13,353 | 13,966 | 5% |
| Pune | 13,079 | 13,200 | 1% | 10,568 | 15,049 | 42% |
| Hyderabad | 8,325 | 9,114 | 9% | 11,034 | 10,902 | -1% |
| Ahmedabad | 4,108 | 4,578 | 11% | 5,996 | 5,702 | -5% |
| Chennai | 3,870 | 4,105 | 6% | 4,000 | 4,273 | 7% |
| Kolkata | 3,772 | 4,309 | 14% | 4,978 | 3,782 | -24% |
| Total | 82,612 | 87,108 | 5% | 85,549 | 90,479 | 6% |
Source: Knight Frank Research
During Q3 2024, 43% of the residential sales were in the ticket size between INR 5 mn to 10mn registering a YoY growth of 22%. The ticket size of 10mn and above registered a growth of 37% and accounted of 30% of total market share in the city. Ticket size of below INR 5mn constituted 28% of the overall residential sales in the market in the region.
Ticket-size split of sales
| Ticket Size Categories | < INR 5 mn | INR 5-10 mn | > INR 10 mn | Total |
| Q3 2024 | 1,136 | 1,749 | 1,220 | 4,105 |
| YoY % change | -27% | 22% | 37% | 6% |
Source: Knight Frank Research
Srinivas Anikipatti, Senior Director- Tamil Nadu and Kerala, Knight Frank India said, “Chennai’s real estate market demonstrates significant growth potential, fuelled by economic expansion and infrastructural advancements. As a major hub for auto manufacturing and with a thriving IT sector, the city is anticipated to maintain strong demand for both residential and commercial properties. Property prices are projected to steadily appreciate, positioning Chennai as an attractive market for capital gains”.
