Gross absorption in leasing was highest in Chennai at 1.5 million square feet during the January-March 2022 period, according to Colliers India report released on Thursday.
Technology sector accounted for almost half of the leasing during the quarter under review as business sentiments were returning to normalcy after the impact of COVID-19 pandemic, the report said.
Large deals accounted for 54 per cent share in total leasing, led by technology occupiers who were looking to consolidate offices and take up large spaces in the metro.
''During Q1 2022, the office market witnessed highest absorption in two years. Chennai recorded a whopping three-fold jump in absorption clocking at 1.5 million square foot in comparison to Q1 2021. Clearly business sentiments are returning to normalcy...,'' Colliers India, Managing Director, Kanchana Krishnan said.
Majority of the leasing activity were focused on Mount Poonamallee Road, Old Mahabalipuram Road, the report said.
Chennai recorded significant supply of 3.2 million square foot during Q1, 2022, as real estate developers anticipate demand returning to the market.
''The Chennai office market made a comeback in the first quarter of 2022, showcasing a favourable demand scenario with Mount Poonamallee Road witnessing maximum absorption of 36 per cent in total leasing'', Colliers South India managing director office services, Arpit Mehrotra said.
The supply was likely to be focused on the Grand Southern Trunk Road (GST) Pallavaram Thoraipakkam Road, Old Mahabalipuram Road. The vacancy levels were likely to remain elevated despite improving demand due to robust supply pipeline, the report added.
(With inputs from PTI)
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