Chennai to Add 12-13 Million Sq Ft Premium Office Space by 2026

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Chennai is expected to add 12-13 million square feet of premium office space between 2025 and 2026, driven by strong demand from corporate sectors, according to a report by real estate consulting firm CBRE South Asia Pvt. Ltd., as published by Business Standard.

Currently, the city is home to approximately 250 Global Capability Centres (GCCs) that employ over 150,000 professionals, making up about 11% of India’s total GCC talent pool. The number of GCCs in Chennai is expected to increase to 460 by 2030, the report stated.

Strategic government policies, including the Tamil Nadu Startup and Innovation Policy, Research and Development Policy, and payroll subsidy programs for newly established GCCs, are solidifying Chennai’s role as a hub for innovation and talent, the study revealed.

The CBRE report titled Tamil Nadu: The Epicenter of Capability and Innovation Leadership emphasized Chennai’s growing prominence as a key destination for GCCs. From 2022 to September 2024, Chennai ranked third in GCC leasing activity, following Bengaluru and Hyderabad.

GCC office absorption in the city increased from 1.4 million square feet in 2022 to 2.3 million square feet in the first nine months of 2024. In 2025, GCCs are expected to lease 3-3.2 million square feet of office space. By 2030, the number of GCCs in Chennai is forecasted to reach 450-460 units.

The talent pool for GCCs in the city is expected to grow to between 320,000 and 370,000 by 2030, supported by a mix of experienced professionals and fresh graduates. This growth is further bolstered by the Tamil Nadu government’s initiatives in workforce training and industry-academia collaboration.

“The availability of robust infrastructure, proactive government policies, and quality office developments are aligned to meet the needs of global corporates,” the report noted. The city is set to add 12-13 million square feet of premium office space tailored to enhance employee experience, complete with state-of-the-art amenities between 2025 and 2026.

Beyond Chennai, other cities in Tamil Nadu such as Coimbatore, Madurai, and Tiruchirappalli are emerging as key hubs for the manufacturing sector, presenting significant investment opportunities for the establishment of GCCs. These cities boast strong talent pools in manufacturing, software development, and mechanical engineering, further driving the growth of GCCs in the state.

Sectors contributing to the growth of GCCs in Tamil Nadu include manufacturing, engineering, technology, and banking and financial services. The report highlighted that 67% of GCCs established between 2022 and September 2024 were by U.S.-based companies.

“Chennai is a vibrant metropolis with a rich cultural heritage and a thriving economy,” said Ram Chandnani, Managing Director, Advisory and Transaction Services at CBRE India. “Its strategic location and excellent connectivity have made it a preferred business destination, further fostering economic development.”

The Tamil Nadu government’s proactive policies, including the recently announced GCC-specific policies, are designed to support the growth of such facilities in the state, driving investment and job creation, Chandnani added.

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