Chennai Real Estate Leverages Advantage Over Bangalore

By: George Gonigal

As the IT/ITES companies continue thronging Chennai, the real estate markets of the city have set themselves up on a high trajectory of growth. Owing to the cost advantage Chennai offers over its counterpart cities of Bangalore and Hyderabad, a number of national and international companies are choosing Chennai to set up their offices.

Take Frost & Sullivan's, Office Tiger and Irevna and even World Bank which provide support to consultants and analyst overseas are coming to Chennai, for instance. The reason cited behind this is that Chennai's real estate market is less expensive and thus it has cost efficiency over Bangalore and Mumbai. Chennai commercial real estate market is less priced and office space is easily available on lease as compared to other financial hubs.

Bangalore commercial real estate values are far high as compared to Chennai and office space availability is another issue as the CBD region is jam-packed. Similar is the case with Mumbai where population density is high in relation to the area and thus crunching a space for commercial and residential purpose is always a problem and Mumbai real estate values are touching sky.

With these conditions Chennai is the ideal destination where space is available and that too within reach of the people and that's why most of the international players are planning to establish their units over there.

Office space in Bangalore central Business District (CBD) region is priced at Rs 15,000-Rs 20,000 per sq ft , while the same in Chennai CBD region is available at Rs 9,000- Rs 12,000 per sq ft.

Chennai has certain more advantages over the other competent States such as availability of skilled manpower at lower price, more resources required for business growth, low cost environment etc.

Chennai commercial real estate will further increase in the coming years with the implication of its new Master Plan in which a total of 20.47 million sq. ft of office space is to be developed. All this will have a direct influence on Chennai residential and commercial real estate market.

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