Tamil Nadu Government identifies land bank of office space development in Chennai

Tamil Nadu govt is taking steps to avoid office space crunch in the state and tapping its own land bank in Chennai to build office facilities with private partnerships, a senior govt official said. It has identified 30 locations in Chennai for grade A office space development, said state industries secretary. “The incremental office space absorption in the city is higher than supply and govt is unlocking its own land and plans to develop office spaces. Given the current demand scenario, there is a need for ramping up supply, Estimates by analysts put Chennai’s gross office space absorption in 2023 at 10.8 million sq ft. They expect a similar momentum this year but a slowdown in 2025 due to shortage of office space. The state is witnessing a lot of traction in GCC operations due to incentives and subsidies being offered by the state, he said, adding that the state is open to tweaking the incentive package based on industry inputs. Tamil Nadu tops rankings in most economic parameters, it is behind in global capability centres compared to other cities like Bengaluru, Delhi-NCR, Hyderabad and Pune. A report released at the event by CBRE states that Chennai ranked 3rd in GCC leasing after Bengaluru and Hyderabad from 2022 to September 2024, with 33% of the activity by engineering and manufacturing firms. GCCs are expected to absorb up to 3.2 million sq ft in 2025, slightly higher than current year. 
 

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