Real-Estate Blog

Though Chennai has been a major growth market for organized retail, the mail sector has only just started heating up up with numerous projects in the pipeline. About 12 million sq. ft. of retail space is expected to enter the market in the next 12 to 18 months. The demand for space in both the high street and malls is on the rise as they are spread pretty evenly across the city.
Increased demand for prime retail space mainly from new retailers seeking to establish their presence in the Chennai market, has pushed rental values up 50-65 percent ($2.5 to $3 per sq. ft ground floor) in the high street and up to 80 percent in the luxury zones ($4 - $5 per sq. ft.) in the past year alone.
Besides the central business district areas, suburban markets like East Coast Road (a residential and leisure stretch) have also seen an increase in retail activities. The parallel IT Highway is expected to get at least four or five malls, the result of the increased IT/ITES activity and related residential boom in that area has generated a phenomenal retail potential.
The demand for retail space is buoyant with high street rentals not showing any slackening. The rentals at proposed mall projects have also risen steeply with average rentals starting from $2 per sq. ft. in the suburbs to $4 in the central business district.
Chennai has seen considerable growth in IT, automobiles and some other industry segments, leading to an increase in spending capacities and dual household incomes. This, more than any other factor, has been responsible for the increased spending in the retail sector.