From Steel to Startups: Guindy's Metamorphosis Paves the Way for Chennai's Economic Boom

Fri, 05/17/2024 - 05:09

Author: JLL

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Chennai’s skyline is transforming as sleek skyscrapers replace the sheets of smoke that once dominated the horizons of Guindy.

Chennai is one of India’s key start-up hubs in the SaaS sector, and  located within the industrial heart of Chennai is Guindy, which is going through a remarkable transition from a striving manufacturing hub into a dynamic CBD.

This metamorphosis is fueled by strategic investments, infrastructural advancements, and a growing residential sector.

Guindy’s growth is solidifying its position as a burgeoning center for commerce and opportunity, presenting a peculiar opportunity for businesses and residents alike.

Office Space Absorption:

The district has witnessed a steady increase in office space absorption, with engineering and manufacturing firms, IT/ITeS, and BSFI companies being the predominant leasers.

This robust demand is reflected in the on-going price for office space, which ranges from INR 7,000 to 10,000 per square foot.

Developers like TVS, L&T, VGN, Casagrand, and Voora, all known for their quality projects, are actively involved in this micro-market.

The projected office space absorption rate in Guindy as of 2024 is expected to be around 6.5 million square feet and currently stands at 5.2 million sq. ft. with a vacancy level of 5-6%.

Infrastructure:

Guindy has continued to modernize its infrastructure, including the expansion of roadways, the introduction of metros, enhancing accessibility, and easing traffic congestion.

Moreover, the establishment of state-of-the-art commercial and residential complexes, along with the presence of prominent educational institutions, healthcare facilities, malls, and its close proximity to the Chennai International Airport, has bolstered Guindy’s apparel as a thriving business hub.

Residential Developments:

Guindy is not just about offices; it also offers excellent residential pockets.

The area is a growth corridor with up-coming Grade A projects, catalyzing stability and consolidation activities.

The presence of pan-Indian developers makes it attractive for multi-city occupiers.

The area’s property prices range from affordable to luxury, catering to different types of residents.

Additionally, the integration of green spaces and sustainable urban planning initiatives has not only elevated the aesthetic charm of the area but also fostered a more conducive environment for businesses and residents alike.

Investment Potential:

With its focus on office space absorption, infrastructure development, and residential growth, Guindy presents a lucrative investment opportunity.

The area is the second-most imperative commercial market in Chennai after OMR.

The presence of category A developers, sub-10% vacancy levels, and continued occupier demand for Grade A assets are positive indicators for property values.

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