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

Equipment

12 Dec 2025

Schwing Stetter India Unveils New Innovations at Excon 2025

Schwing Stetter India unveiled more than 20 new machines at Excon 2025, marking one of its most significant showcases and introducing several India-first technologies to the construction equipment sector. The company launched the country’s first 56-metre boom pump designed and manufactured in India, the first fully electric truck mixer, the first CNG mixer variant and the first hybrid boom pump. Executives said the launch portfolio was engineered to support India’s move toward faster, greener and more vertically oriented infrastructure through advanced engineering, clean-energy solutions a..

SEPC Resolves Hindustan Copper Dispute, Wins Rs 725 Mn Order

Engineering, procurement and construction firm SEPC Ltd has recently settled a dispute with Hindustan Copper Ltd (HCL) and secured a mining infrastructure order valued at Rs 725 million from the state-owned company. SEPC informed the stock exchanges that it has executed a settlement deed with HCL, bringing closure to all inter-se claims and counterclaims arising from arbitration proceedings. As part of the settlement, SEPC will receive Rs 304.5 million as full and final payment, marking the resolution of all pending disputes between the two entities. The company also stated that Hindustan Co..

20% Ethanol Blending Cuts India’s CO2 Emissions by 73.6 Mn Tonnes

Union Road Transport and Highways Minister Nitin Gadkari recently said that India has reduced carbon dioxide emissions by 73.6 million metric tonnes due to the adoption of 20 per cent ethanol blending in petrol. He made the statement while replying to supplementary questions during the Question Hour in the Lok Sabha. Describing ethanol as a green fuel, the minister said it plays a key role in reducing pollution while also supporting higher incomes for farmers. He underlined that ethanol blending contributes both to environmental sustainability and rural economic growth. Nitin Gadkari also po..