Developers to build housing parks in place of IT parks in Chennai
08 Jun 2021
2 Min Read
CW Team
According to a real estate agency, Realty Beat, builders in Chennai are considering developing housing projects in place of IT parks as demand for office spaces has taken a hit due to Covid-19.
The rethink came after the number of vacant office spaces increased over the past year, while housing demand remained stable.
On GST Road and OMR, the city already has a few IT parks with housing amenities that were built before the Covid era.
Developers working on IT park projects are deferring their commercial ventures. It occurs as office space absorption falls from a high of 5.2 million square feet in 2019 to 4.5 million square feet in 2020.
Due to the work-from-home situation, stakeholders predict that absorption will drop to 2 million square feet this year.
The residential vertical, according to Ajith Kumar Chordia, managing director of leading IT park developer Olympia Group, is more appealing now.
He stated that as the demand for homes remains stable, builders who previously only constructed office space will return to the housing vertical. Office vacancy rates have risen from 7% to 11%.
Developers will not develop new IT office space projects without pre-commitment from clients, according to Srinivas Anikipatti, senior director of Knight Frank India in Tamil Nadu and Kerala.
He added that it would take developers with IT office space projects another two years to determine whether to use their land parcels for IT parks or transition to mall, retail, or residential depending on demand.
Also read: Work from home culture may damage workspace market: Ind-Ra
Also read:
According to a real estate agency, Realty Beat, builders in Chennai are considering developing housing projects in place of IT parks as demand for office spaces has taken a hit due to Covid-19.
The rethink came after the number of vacant office spaces increased over the past year, while housing demand remained stable.
On GST Road and OMR, the city already has a few IT parks with housing amenities that were built before the Covid era.
Developers working on IT park projects are deferring their commercial ventures. It occurs as office space absorption falls from a high of 5.2 million square feet in 2019 to 4.5 million square feet in 2020.
Due to the work-from-home situation, stakeholders predict that absorption will drop to 2 million square feet this year.
The residential vertical, according to Ajith Kumar Chordia, managing director of leading IT park developer Olympia Group, is more appealing now.
He stated that as the demand for homes remains stable, builders who previously only constructed office space will return to the housing vertical. Office vacancy rates have risen from 7% to 11%.
Developers will not develop new IT office space projects without pre-commitment from clients, according to Srinivas Anikipatti, senior director of Knight Frank India in Tamil Nadu and Kerala.
He added that it would take developers with IT office space projects another two years to determine whether to use their land parcels for IT parks or transition to mall, retail, or residential depending on demand.
Image Source
Also read: Work from home culture may damage workspace market: Ind-Ra
Also read: 7,400 office leases of 90 million sq ft up for renewal in top 6 cities in 2021
Next Story
Pune Sees 14,421 Property Deals in April 2025, Earns Rs 5.47 Bn: Report
Knight Frank India, in its latest assessment, noted that Pune鈥檚 real estate market registered 14,421 property transactions in April 2025, generating Rs 5.47 billion in stamp duty revenue. While property registrations saw a slight year-on-year (Y-o-Y) increase of 1 per cent, stamp duty collections dipped marginally by 3 per cent Y-o-Y during the same period. The decline in stamp duty revenue is primarily attributed to a higher share of registrations in lower ticket-size segments. On a month-on-month (MoM) basis, both property registrations and stamp duty collections in Pune fell by 43 pe..
Next Story
JK Tyre Launches India鈥檚 First Car Tyre with ISCC Plus Material
JK Tyre & Industries, the pioneers of innovation in tyre industry have commenced production of its 鈥楿X Royale Green鈥� passenger car tyres using ISCC Plus certified sustainable raw materials at its Chennai Tyre Plant鈥攎arking yet another first in the Indian tyre industry. This milestone reflects JK Tyre鈥檚 steadfast commitment to green technology and reducing carbon footprint through continuous R&D excellence.The certification, granted under the globally recognised International Sustainability and Carbon Certification (ISCC plus) framework, validates the use of traceable and respon..
Next Story
Liebherr Showcases Machines at LIGNA 2025 for Timber Industry
Liebherr will showcase its special machines and solutions for the wood processing industry at the LIGNA 2025 international trade fair for the timber and forestry sector in Hanover. From 26 to 30 May, visitors will be able to explore Liebherr's approximately 475 m虏 exhibition stand in the fair's outdoor area (Corner 7, Stand L44). The Liebherr LH 26 M Timber material handler and the Liebherr T 60-9s telescopic handler will be among the machines on display. The Liebherr wheel loader L 580 XPower is equipped with industrial kinematics and high-dump bucket for the timber industry. In addition, an..
