Shortage in supply of office space has resulted in reduced absorption and higher real estate rentals in Chennai. For the period from January to September this year, deals for nearly 3.3 million square feet have been signed, down from 3.7 million a year ago. Rentals have, however, shot up by nearly 10% year-on-year. Chennai’s real estate market is driven largely by captive back office operations of large corporations, mostly in the financial services vertical. In any given year, the city absorbs nearly 4.3 million square feet of office space.
Read more: Economic Times
