Publish: June 11, 2025

Guidance

What are the current lease or sale rates for industrial space locally?

Industrial lease rates in Chennai vary depending on the locality and property features:

General Range: ₹20 to ₹40 per sq. ft. per month.
Ambattur Industrial Estate: Listings indicate rents around ₹5 lakh for 13,000 sq. ft., equating to approximately ₹38.5 per sq. ft. per month.
Oragadam and Sriperumbudur: Rates average around ₹25 to ₹26 per sq. ft. per month.
Red Hills: An 8,400 sq. ft. warehouse is listed at ₹1.68 lakh per month, translating to ₹20 per sq. ft.

These rates are influenced by factors such as property age, infrastructure, and proximity to key transport hubs.

Sale prices for industrial properties in Chennai also vary:

Ambattur: A 4,500 sq. ft. factory is listed at ₹4.1 crore, approximately ₹9,111 per sq. ft.
Pammal: An industrial building is available for ₹3.75 crore for 3,229 sq. ft., equating to ₹11,620 per sq. ft.
Red Hills: An 8,000 sq. ft. commercial plot is priced at ₹50 lakh, around ₹625 per sq. ft.

Prices are contingent on factors like location, plot size, and existing infrastructure.

Chennai’s industrial real estate market has witnessed significant activity:

Leasing Activity: In 2024, Chennai, along with Delhi NCR, contributed to approximately 50% of the industrial and warehousing leasing activity in India.
Rental Growth: Key micro-markets experienced a rental increase of 5–10% in 2024, driven by demand from sectors like 3PL and manufacturing.
Vacancy Rates: Vacancy levels remained around 13–14% at the end of 2024, indicating a balanced market.

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