India, Aug. 31 -- Chennai's commercial real estate market added 4.9 million sq. ft. of new Grade-A office space in FY2025, with the majority being absorbed. In Q1 FY2026, an additional 1.3 million sq. ft. was introduced, while net absorption jumped to 3.1 million sq. ft., indicating robust demand, a report by ICRA has said.

Occupancy levels rose to 90.6% by June 2025, up from 87.8% in March 2024, and are projected to remain stable at 90.5-91% by March 2026, driven by sustained leasing activity from the IT-BPM and engineering & manufacturing sectors, the report said.

ICRA pointed out that the trend is expected to hold, with occupancy projected to remain at 90.5-91% by March 2026, led by robust leasing from IT-BPM and engineering and manu...