Latest research report from Colliers shows increased leasing activity, coupled with a decreased supply led to rental value appreciation of 7.1%-16.3% in select micromarkets across cities. One of those top 10 markets is Chennai’s Old Mahabalipuram Road.
According to the report, OMR Post Toll in Chennai witnessed a YoY rental increase of approximately 10% in Q4 2018. Rajiv Gandhi Salai (OMR), the designated IT corridor of Chennai, has been witnessing significant demand in the pre-toll OMR corridor. This has resulted in a significant escalation in quoted rents in pre-toll OMR region coupled with limited vacancy. Companies that are looking at OMR as a destination for office space are moving to OMR –Post Toll region resulting in a healthy demand, constituting 19% of the total office leasing in 2018.
Other micromarkets that made the list are (Micromarket — Year-over-Year Rental Increase in Q4’18):
- Bengaluru EPIP Zone/Whitefield — 16.3%
- Hyderabad CBD — 15.8%
- Bengaluru Bannerghatta Road — 13.8%
- Kolkata CBD — 10.5%
- Chennai OMR Post Toll — 10%
- Hyderabad PBD — 9.1%
- Hyderabad SBD — 8.3%
- Bengaluru Hosur Road — 8.1%
- Bengaluru Electronic City — 7.5%
- Bengaluru Outer Ring Road — 7.1%
Check this article on Financial Express for details.