Chennai is top market for CBRE
Southern markets will account for 40 per cent hiring for Real estate consulting firm, CBRE South Asia, the firm announced here while revealing the company’s business plans and milestones which have shaped the southern RE landscape for the last 20 years.
With India being a key market, CBRE expects its local business to fuel growth and development in the country. Boasting of a robust economy and a skilled manpower, Chennai remains a crucial market for CBRE, a release stated.
“We foresee retaining our no.1 position in the Chennai region and our vision fuels our purpose to provide exceptional outcomes for clients by combining local market insight, broad services, specialized expertise and premier tools and resources. We expect sectors such as technology, affordable housing, warehousing, industrial, retail, capital markets and government advisory to drive growth for us,” said chairman, India and South East Asia, CBRE, Anshuman Magazine.
CBRE also launched a report titled ‘Destination 2020’ which articulates the salient features of Chennai as a compelling destination for investments in the Southern market. As per the report, Chennai has the right ingredients to sustain long term investments owing to factors such as excellent manpower availability, physical and social infrastructure.
The report said, Infrastructure and the recent policy initiatives undertaken by the state government are expected to augment the supply for both residential and commercial segments. The central government’s PMAY scheme and introduction of RERA is likely to fuel demand for affordable homes.
“Unlike its southern counterparts such as Bangalore and Hyderabad where IT/ITeS continues to sustain commercial demand, Chennai’s commercial activity is driven not just by IT, but also by manufacturing and BFSI sectors, resulting in a comparatively stable commercial market,” the report said.
The report predicts that key preferred micro-markets in Chennai such as OMR Zone-1, OMR Zone-2 and Mount Poonamallee Road are expected to witness quality supply in addition of more than 10 million sq ft in the next two-three years.
Furthermore, corporates from the IT/ITeS sector will remain the demand driver for office space, followed by occupiers from the automotive, BFSI, research and consulting sector, it added.
With the advent of GST, Chennai has also firmly established itself as a destination of choice both for warehousing investors, operators and occupiers by virtue of having multiple seaports, an international airport and excellent road network across the State.