Developers to build housing parks in place of IT parks in Chennai

08 Jun 2021 CW Team

According to a real estate agency, Realty Beat, builders in Chennai are considering developing housing projects in place of IT parks as demand for office spaces has taken a hit due to Covid-19.

The rethink came after the number of vacant office spaces increased over the past year, while housing demand remained stable.

On GST Road and OMR, the city already has a few IT parks with housing amenities that were built before the Covid era.

Developers working on IT park projects are deferring their commercial ventures. It occurs as office space absorption falls from a high of 5.2 million square feet in 2019 to 4.5 million square feet in 2020.

Due to the work-from-home situation, stakeholders predict that absorption will drop to 2 million square feet this year.

The residential vertical, according to Ajith Kumar Chordia, managing director of leading IT park developer Olympia Group, is more appealing now.

He stated that as the demand for homes remains stable, builders who previously only constructed office space will return to the housing vertical. Office vacancy rates have risen from 7% to 11%.

Developers will not develop new IT office space projects without pre-commitment from clients, according to Srinivas Anikipatti, senior director of Knight Frank India in Tamil Nadu and Kerala.

He added that it would take developers with IT office space projects another two years to determine whether to use their land parcels for IT parks or transition to mall, retail, or residential depending on demand.

Image Source

Also read: Work from home culture may damage workspace market: Ind-Ra

Also read: 7,400 office leases of 90 million sq ft up for renewal in top 6 cities in 2021

Infrastructure Transport

06 Feb 2026

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..