The Hindu Business Line : Real estate activity spurts in Chennai

Adding to the spate of real estate activity in the city, Astron has taken up 57,000 sq ft of office space at R.A. Puram here. This will be the company's second facility here, according to the latest report from the international real estate consultants, Cushman & Wakefield.

The May report of Cushman & Wakefield said that the first few months of 2004 had witnessed buoyed activity in the real estate market with an absorption of around 7 lakh sq ft of commercial office space. Of this, 30 per cent to 40 per cent is space commitment for projects under construction.

Several of the top multinational companies are looking at Chennai for BPO operations or software development facilities for their next phase of expansion in India, the report said.

The IT and ITES (information technology-enabled services) sectors are expected to continue to lead the demand for commercial office space absorption in the coming months in the city. Increased absorption recently has brought down vacancy rates by 8 per cent to 10 per cent. The supply of commercial office space is likely to increase with demand.

The key transactions in Chennai for May includes Slash Support, a city-based software firm, leasing 75,000 sq ft and ICICI Infotech taking 20,000 sq ft of commercial space in Alwarpet. In Nungambakkam, Pinnacale Software leased 12,000 sq ft of office space in Hamedia Plaza. HCL leased an independent building of 50,000 sq ft on Greams Road and Office Tiger has leased 52,000 sq ft of independent space in Anna Nagar.

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