Chennai office space demand stays strong as GCCs drive growth

Chennai's office market remains resilient with 3.8 million sq.ft. absorbed against 1.7 million sq.ft. supplied in H1 2026. Global Capability Centres dominated leasing at 58% in Q2, led by IT/ITES firms. The city has a 6.8% vacancy rate, the lowest among Indian cities. Key micro markets include OMR Zone 1, Mount Poonamallee Road, and Radial Road.

GCCs will continue to be among the largest absorbers of office space in Chennai. While newer companies from different countries make a beeline for Chennai, I expect the next wave of growth to come from established GCCs in other cities.