ASIA PACIFIC OUTLOOK 2025

CHENNAI

DEMAND & VACANCY

Nearly 20% of the 2025 supply is already pre-committed by BFSI and flexible workspace operators, contributing to healthy absorption levels expected in 2025. The anticipated supply increase in 2025 is likely to raise vacancy rate by ~3%, reaching an estimated 20%. From 2026 onwards, the city is likely to witness average annual absorption of 3 msf, driven by sustained demand.

30.0%

4.0

FORECAST

3.5

25.0%

3.0

20.0%

2.5

15.0%

2.0

1.5

10.0%

1.0

5.0%

Beyond 2026, a significant supply pipeline is likely to cause vacancy to rise.

0.5

0.0%

0.0

2022 2023 2024F 2025F 2026F 2027F 2028F 2029F

NET ABSORPTION (MSF) AND VACANCY RATE (%)

Net Absorption

Vacancy Rate

Cushman & Wakefield

ASIA PACIFIC OUTLOOK 2025

Source: Cushman & Wakefield