Out of the total upcoming supply of ~5 msf in FY2026, ~2.5 msf (50%) is concentrated in Pallavaram, an upcoming micromarket located on Pallavaram–Thoraipakkam Road. The area is gaining traction due to its proximity to the Chennai International Airport (20 minutes via NH45) and its growing base of IT/ITeS firms. Around 21% of upcoming supply in FY2026 is pre-leased.

• Chennai recorded 4.9 million square feet (msf) of fresh Grade-A office supply in FY2025 and 1.3 msf in Q1 FY2026, against strong net absorption of 4.8 msf and 3.1 msf, respectively. This led to an increase in occupancy to 90.6% by June 2025 from 87.8% in March 2024, driven by robust leasing from the ITBPM and engineering & manufacturing sectors. With ~5 msf of new supply and ~6.5 msf of net absorption expected in FY2026, occupancy is likely to remain steady at 90.5–91.0% in March 2026

• As on June 30, 2025, Chennai accounts for 8.5% (~89 msf) of the Grade-A office space across India’s top six cities. Within Chennai, OMR (Old Mahabalipuram Road) and the South-west region collectively hold 80% of the city’s Grade-A office stock. The micromarkets of Tharamani, Perungudi, and Mt. Poonamallee Road are the top contributors, representing 35% of Chennai’s total office supply. For FY2026, vacancy levels in these three micromarkets are expected to remain low, driven by limited upcoming supply and strong absorption momentum.