Lease Rates for Industrial Spaces
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
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.
Market Trends and Demand Drivers
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.