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

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

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

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

Related Stories

Gold Stories

Next Story
Real Estate

L&T Wins Mega Order for India’s Largest NVIDIA B300 AI Factory

Larsen & Toubro (L&T), through Vyoma.AI’s AI infrastructure subsidiary LTN Compute, has secured a mega order to develop what the company describes as India’s largest single-cluster AI infrastructure facility. The NVIDIA B300 AI Factory will support US-based AI cloud company Together AI’s platform for large-scale inference, fine-tuning and training workloads.The integrated AI Factory will be hosted at Vyoma.AI’s Chennai data centre campus and will have a capacity of 10,000 NVIDIA B300 GPUs. The platform will combine hyperscale data centre infrastructure, accelerated computing, h..

Next Story
Infrastructure Urban

Autodesk Elevates Nikhil Bagalkotkar to Lead AEC in India, SAARC

Autodesk has elevated Nikhil Bagalkotkar as Head – Architecture, Engineering and Construction (AEC), India and SAARC, with immediate effect.In his new role, Bagalkotkar will lead Autodesk's AEC business strategy across the region and drive adoption of the company's Design and Make platform. He will also focus on promoting digital design and construction technologies to help customers accelerate innovation and deliver more sustainable and resilient infrastructure.Bagalkotkar will be responsible for expanding Autodesk's AEC business, strengthening customer and partner engagement, and accelerat..

Next Story
Real Estate

Listed Developers' Pre-Sales Seen Rising 22.3 Per Cent in FY27

India's leading listed residential developers are expected to sustain strong sales momentum in FY27, with combined pre-sales of 11 major players projected to rise 22.3 per cent year-on-year, according to an analysis by ANAROCK Research & Advisory.Combined pre-sales of the developers are estimated to increase from Rs 1.49 trillion in FY26 to Rs 1.82 lakh crore in FY27. ANAROCK attributed the growth to sustained end-user demand, new project launches and strong execution despite higher property prices, construction costs and global uncertainties.Dr Prashant Thakur, Executive Director and Head..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement