Chennai Real Estate Market Update Q1 2025: Growth in Offices, Homes, Retail & Warehouses

In the first three months of 2025, Chennai's real estate market showed strong growth across all areas—offices, homes, retail stores, and warehouses. More companies are setting up offices, more families are buying homes, and more businesses are opening stores in different parts of the city. Projects like Prestige Pallavaram Gardens, located on Pallavaram-Thuraipakkam Road in South Chennai, are gaining attention due to their location and rising demand.

Here are five important updates from Chennai's real estate scene in early 2025: 1. Office Spaces Are Filling Up Fast

Chennai's office market is doing well. In Q1 2025, about 1.97 million square feet of office space was rented. That's 19% more than the same time last year. It shows that more companies are moving into the city.

1. Who is renting the space?

IT and Business Process companies took 47% of the space.
Global Capability Centres (GCCs) also took another 47%.
Flexible workspaces like co-working offices made up 28%.
Engineering and manufacturing firms added 16%.

2. Popular office areas:

3. Most of the office demand was in South Chennai, especially in the Suburban South and Peripheral South-West regions. These places are well-connected and already have many IT companies.

4.Vacancy and rent updates:

5.Around 15.91% of top-quality offices are still available. Rents went up by 6% compared to last year.

2. Retail Stores Are Back in Action

In Q1, 0.17 million square feet of retail space was leased. Most of the shops opened along main roads, not in malls.

1. Where are most stores opening?

North-West Chennai had the highest share of new shops (38%).
Off-CBD areas like T. Nagar and Alwarpet followed closely (37%).

2. What are people buying?

Fashion brands led the demand, making up 37%.
Accessories and lifestyle products came next, with 32%.

3. Retail rents and vacancy:

4.Mall vacancies stood at 14.13%, but top malls had almost no empty space. Rents along busy streets grew by 3–4% over the last quarter.

3. New Homes Are in High Demand

Chennai's housing market added about 6,200 new units in the first quarter of 2025. This shows that builders are confident and buyers are active.

1. Where are the homes being built?

Suburban South I, which includes Pallavaram and nearby areas, had 40% of all new homes.
Suburban South II had another 27%.

2. Types of homes launched:

Mid-range apartments made up 65% of new launches.
High-end and luxury homes made up 30%.

3. Home prices and rent:

Mid-range homes saw 4–7% increase in rents across many areas.
Property values went up by 4–6% in Suburban South, North, and West.
Projects like Prestige Pallavaram Gardens are seeing price appreciation because of their location and rising demand in South Chennai.

4. Warehousing and Factories Are Growing Fast

Chennai also saw a big rise in demand for storage and industrial space.

1. Leasing activity:

Warehousing leases reached around 5 million sq. ft., which is 72% more than the last half-year.
Industrial leasing touched 2.4 million sq. ft., more than double the previous period.

2. Top locations:

Oragadam led in both warehouse and industrial space.
Madhavaram followed in warehouse demand.

3. Who is leasing?

Logistics companies (3PL) took 45% of the space.
Automotive companies leased 14%.

4. Rent growth:

Key areas like Oragadam, Gummidipoondi, and GST Road saw rents rise by 4–7%.

5. Overall Market Outlook: Chennai Is Booming

Chennai's real estate is growing in all directions—offices, homes, shops, and warehouses. The city's strong economy, better roads and metro access, and growing job market are helping this boom. Areas like Pallavaram and Thuraipakkam, where Prestige Pallavaram Gardens is located, are becoming hot spots for buyers and renters.

Whether you're looking to start a business, rent a shop, or buy a new home, Chennai is full of opportunities in 2025.