Chennai registers 115% YoY growth in office transaction of 0.15 mn sq m (1.6 mn sq ft) in Q3 2021: Knight Frank India

Chennai, 4^th October 2021: Knight Frank India, leadinginternational property consultancy, today launched its quarterly report – India Real Estate Update – Q3 2021; which cited that Chennai registered 115% rise in office space transactions to 0.15 mn sq m (1.6 mn sq ft) and 258% rise in new completions to 0.02mn sqm (0.2 mn sq ft) in Q3 2021. The cumulative office transactions for the first nine months of 2021 were reported to be at 0.09 mn sq m (2.8 mn sq ft).

Chennai’s residential sales and new launches witnessed growth of 17% and 49% YoY, respectively in Q3 2021. The city recorded sales of 3,610 residential units and launches of 3,795 residential units were launched during this period. Weighted average prices in Chennai market remained stable during the quarter.

“As vaccination gathers pace and companies gradually decide to bring back their workforce to offices, the demand for commercial assets should gather traction going forward” said Shishir Baijal, Chairman and Managing Director, Knight Frank India

TABLE I: CHENNAI OFFICE TRANSACTIONS AND SUPPLY IN MN SQ M (MN SQ FT)

Market	Q1 2021	Q2 2021	Q3 2021	Q3 2021 YoY Growth %	Q3 2021 as % of 2019 Quarter average
TRANSACTIONS	0.04 (0.4)	0.07 (0.8)	0.15 (1.6)	115%	123%
NEW SUPPLY	0.01 (0.1)	0.06 (0.7)	0.02 (0.2)	258%	54%

Source: Knight Frank Research

Rajani Sinha, Chief Economist & National Director – Research, Knight Frank India said, “The mid-income housing segment has shown great promise in Chennai residential market. The segment has gained prominence and is seeing increasing development interest. The market has also witnessed a prominent shift in buyer’s sentiment.”

TABLE II: RESIDENTIAL SALES AND LAUNCHES IN UNITS

Market	Q1 2021	Q2 2021	Q3 2021	Q3 2021 YoY Growth %	Q3 2021 as % of 2019 Quarter average
SALES	4,058	1,693	3,610	17%	85%
LAUNCHES	2,981	2,443	3,795	49%	132%