ASIA PACIFIC OUTLOOK 2025

CHENNAI

RENT GROWTH

Rental growth of 5.2% is forecasted by the end of 2024. Strong demand and tight vacancy levels in markets such as Suburban South and South West have contributed to the rental increase. Quality new supply entering the market with premium rents has also driven rental growth. Marginal rental growth of 2 –3% is expected between 2025 and 2026, with rents forecasted to reach approximately INR967 per sq ft per year by the end of 2026. Given that upcoming supply is largely coming from prominent developers and PE Institutions, the city is likely to see an influx of high-quality space with premium rentals, contributing to rental growth.

7.0%

1,050

FORECAST

6.0%

1,000

5.0%

950

4.0%

900

3.0%

850

2.0%

800

1.0%

750

0.0%

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

INR/SQFT/YR

Rent growth (%)

RENT (INR/SF/YR) AND RENT GROWTH (% PER ANNUM)

Cushman & Wakefield

ASIA PACIFIC OUTLOOK 2025

Source: Cushman & Wakefield