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2 Key Demand Drivers
Chennai has registered signifcant growth in terms of real
estate. Expanding city limits and growing population have
been key drivers of the city’s growth. As a result of this,
the real estate sector also registered expansion towards
suburban and peripheral locations in order to meet
the rising housing demand. Chennai has a diversifed
economic base anchored by the automobile, software
services and electronics hardware sectors. These are the
predominant sectors driving the economic and real estate
growth in the city.
Software and Software Services:
Software development
and business process outsourcing are sectors that have
been imperative for the growth of real estate in Chennai.
Major software and software services companies like
Accenture, CTS, HCL, HP, IBM, Infosys, WIPRO, TCS,
and Microsoft etc. have development centres in the city.
The city is now the second largest exporter of IT/ITES in
the country behind Bangalore. IT/ITES sector has been
the major driver of offce space and residential space in
Chennai, particularly along OMR and Pour micro markets.
Electronics Hardware
: Chennai has emerged as
an electronic manufacturing hub with multinational
corporations like Dell, Nokia, Motorola, Cisco, Samsung,
Siemens, Sony-Ericsson, Flextronics and Foxconn setting
up electronics/hardware manufacturing plants, particularly
in the Sriperumbudur Electronics SEZ. Ericsson and
Alcatel have research and development facilities in the city
while Texas Instruments' R&D facility is in the pipeline.
The development of electronics hardware manufacturing
sector has in turn resulted in the development of
Sriperumbudur and other such neighbouring hubs as an
affordable residential destination sought after by both end-
users and investors.
Automobiles:
As per information from Invest India,
Chennai accounts for 60% of India's automotive exports,
which leads it to be called as 'The Detroit of Asia'.
Chennai has a market share of around 30%
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of India's
automobile industry and 35%
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of its auto components
industry. A large number of the automotive companies
including several global automotive companies such
as BMW, Hyundai, Ford, Nissan-Renault, Mitsubishi,
TVS Group companies, Ashok Leyland, TI Cycles, TAFE,
Dunlop, and MRF have manufacturing plants in and
around Chennai. Daimler and Apollo Tyres have plants
started production in their plants. The automobile sector
has resulted in the creation of industrial clusters including
as Oragadam, Sriperumbudur and several parts of GST
Road which in turn has increased support infrastructure
especially in terms of housing.
3 Commercial Real Estate
Chennai has emerged as a favoured investment
destination for Manufacturing, IT/ITES and Logistics by
virtue of its strategic location and government subsidies,
making it one of the most lucrative locations in the
country. A permutation of various factors has led to
the current activity levels in the city viz., government
initiatives to attract investments, signifcant improvement
in the quality of real estate developments and the
favourable business environment. Real estate with
respect to commercial space post year 2000 has
witnessed healthy demand and supply.
Commercial Corridors
There are primarily fve commercial clusters in the city;
all clusters are a mix of commercial and retail
developments. Retail developments in the peripheral
areas of Old Mahabalipuram Road & GST Road are at
a very nascent stage.
Commercial corridors in Chennai
1
2
3
4
4
4
5
6
6
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GIREM
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Census India Tamil Nadu Industrial Guidance & Export Promotion Bureau
1. Old City
2. Off-CBD
3. IT Corridor
4. Suburban
5. CBD
6. Peripheral
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