Chennai records office transactions of 1.9 mnsqft during Q3 2023: Knight Frank India

According to the latest report from Knight Frank India, titled ‘India Real Estate Q3 2023’, Chennai observed office space transactions of 1.9 mnsqft during Q3 2023. 

New office completions in the city were recorded at 0.1 mnsqft and the average transacted rent of the city grew by 3% YoY to INR 63.0 sqft/month during the quarter.

During Q3 2023, the major occupancy/leasing activity was driven by Global Capability Centres and Third Party IT Services with 31% attribution from each. India-Facing business and Flex office areas accounted for 25% and 13% respectively of the office transactions in the city. 

Shishir Baijal, Chairman & Managing Director, Knight Frank India said, “The relative strength of the Indian economy continues to attract global corporate interest and is reflected in the recovering demand in the Indian office space market”.

“While we celebrate overall residential market growth, concerns arise, notably in the affordable segment, which has seen a steady decline in Q3 2023. Therefore, stakeholders must reconsider strategies to revive the affordable segment and maintain its momentum,”Shishir further added

Knight Frank India cited that the leading eight residential markets in India continued to show strong growth momentum. During Q3 2023 (July – September 2023), Indian markets saw a surge in demand with sales of 82,612 residential units recording a growth of 12% YoY. In volume terms Q3 2023 recorded a six-year high in quarterly sales volumes.