The demand for office space in Chennai declined by 22 per cent in the third quarter of 2016, compared with the second quarter, according to a report by Colliers International.
The report, however, adds that the demand is likely to pick up as large corporates may commit huge office blocks especially in special economic zones in the coming quarters The region now seeing an uptick in demand for office rental space in Chennai is the ‘post-toll’ Old Mahabalipuram Road, between Perungudi and Navalur, owing to the availability of quality IT spaces at affordable rents.
OMR post toll’s share in the total quarterly absorption has increased from 10 per cent in the second quarter of 2016 to 23 per cent in the third quarter of 2016, the report said. The dearth of adequate space required by companies in this ‘pre-toll’ OMR, that is before Perungudi, also contributed to a high demand, it added.
