Chennai retail market continues to boom

Retail sector in Chennai is mostly of high street format and traditional shopping
areas. Few malls are located in the city area and there are upcoming malls in other
parts of the city and Suburban areas. There is a huge demand for organized retail
space due to increase in the population occupied in IT/ITES sector.
High street retail activity in Chennai is primarily concentrated in and around
Nungambakkam, Cathedral Road & T Nagar. Some other prominent retail areas in the
city are the markets of the Anna Nagar, Adyar, Besant Nagar, Purasawalkam and
Egmore.
Absorption rates are very high for retail spaces in Chennai and there is no vacancy in
newly delivered spaces as well as in the existing retail space. Because of the huge
demand for organised retail space in the city and suburbs there is absorption even
before the building is completed.
Due to growth in the population working in IT/ITES sector, there is an increase in the
demand for large retail spaces. It is expected that by the end of 2010, Chennai is
going to witness a steep increase in the number of malls, which would go up to 20
with a total built-up area of 9 million sq.ft.
There will be maximum supply in CBD and in suburban areas due to these upcoming
malls. Chennai Citi Center located on R K Salai is the only mall completed recently.
Significant pre-leasing activity was witnessed in malls under construction, such as
Ampa Mall, Coromandel Plaza and Allied Mall. Hence there is increased demand for
organized retail space.
Some of the recent transactions as far as retail sector is concerned in Chennai are by
Samsonite with 4,500 sq. ft. in Chellam Towers, Shoppers Stop - 15,000 sq. ft. in
T.Nagar along Venkatnarayana Road, Fame - 40,000 sq. ft. in Coromandel Plaza and
60,000 sq. ft. in Allied Mall, Naidu Hall - 10,000 sq. ft. in Valasaravakkam, and by
Reliance Retail Ltd launching 12 Reliance Fresh stores at various locations in Chennai
covering a space of 40,000 sq. ft.
Both capital and rental values are showing an upward trend. Retail spaces in CBD
areas command a rate in the range of INR 75-150 per sq. ft. per month for lease and
INR 6000-8000 per sq. ft. for sale. Retail spaces in Non CBD (city limits) are available
for lease and outright sale at INR 50-90 per sq. ft. per month and INR 5000-7500 per
sq. ft. respectively. Rentals and Capital rates in suburbs are prevailing at INR 40-65
per sq. ft. per month and INR 3500-6500 per sq. ft. respectively. Average rental
values for retail space at high street locations in the prime CBD range from INR 75160 per sq. ft. per month.
IT/ITES sector developments are the key driving factor for recent increase in the real
estate activity in Chennai especially the retail sector. The existing malls in Chennai
are reporting very high footfalls due to over congestion in the prime shopping areas
like Pondy Bazaar and Purasawakkam. The existing multiplexes are also doing very
well. There is a huge demand for retail spaces and the trend is likely to grow in the
years to come.

Prime High Street Locations and Retail Rentals

Localities

High Street
Locations

Nungambakkam

Nungambakkam
High Road

Rental
(INR/sft
pm)
100-75

Khader Nawaz
Khan Road

120-150

Gopalapuram

Cathedral Road

100-75

Mylapore

Dr.
Radhakrishnan
Salai

110-90

Anna Nagar

Second Avenue

90-75

Third Avenue

75-50

Sardar
Road

75-60

Adyar

Patel

Gandhi Nagar
1st Main Road

Besant Nagar

L.B Road
Second Avenue

75-50
60-50
50-40

Vailankanni
Church Road

50-45

Alwarpet

Beach Road
T.T.K Road

60-50
60-40
65-45

T.Nagar

C.P
Ramaswamy
Road
Pondy Bazaar
North
Road

Usman

120-100
100-85

Retailers Present
Nike, Reebok, Pizza Hut, Pizza
Corner, Landmark, VIP, Raymond,
Louis Philippe, Van Huesen, Marks
Spencer etc.
Zara,
Totto,
Wills
lifestyle,
Evoluzine,
Souls,
Clothes
Encounter, Color weaves, Barista,
Cotton World, Auroville, Gurlz.
Elite, Vimal, Bapalal Jewellery,
Khazana Jewellery, Woodlands,
Copper Chimney, Titan, Raymond.
Nilgiris
Super-markets,
Turakia
Opticals, Sri Krishna Sweets, Levis,
Nike, Satyam Infoway, Pizza Hut,
GKB Opticals. Hot Breads.
Damro Furniture, Hutch Shop, Food
world, Gautier, Crocodile, Pizza
Hut, Barista.
Vivek & Co., Archies Gallery,
Sundaram Motors, Caf Coffee
Day, Trinetra Super Market.
Sixth Sense, Adyar Bakery, The
Hutch Shop, Food World, Nuts n
Spices,
Qwickys,
Proline,
Pantaloons, Hotel Sangeeta.
Mitsubishi Lancer Showroom, Chick
King, Pizza Corner.
Food World, Cakewalk, L'oreal
Beauty Saloon.
Hotel Saravana Bhavan, Nilgiris
Supermarkets. My Dollar Store, Fab
India, Planet Yum, Cozee, Barista.
Lifestyle, Touchtel, Bata.
Crocodile, Kirtilal Jewellery, Pizza
Corner, Coffee World.
Globus, Nike, Ratna Stores.
Nalli Silks, Pothys, GRT Jewellery,
Barista, Meenakshi Bhavan.

G.N
Chetty
60-50
Caf Coffee Day, Food
Road
Qwickys, Agrani Switch.
Note: All these rates are for Ground Floor showrooms with good frontage.
Source: Trammell Crow Meghraj Market Surveys

World,

Details of Existing and Upcoming malls

Name of Mall

Developer
Location
Area in sft
Existing Malls
Spencer Plaza
Mangal Tirth Estate
Anna Salai
4.8 Lakh
Abirami Mega Mall Abirami Theatres
Purasaivakkam
1.5 lakh
Chennai Citi Center ETA Group
R K Salai
2 Lakh
Upcoming/Proposed Malls
Ampa Centre One
Ampa Housing
Nelson Manickam Road
3.4 lakh space out
Development
of 6.5 lakh
Prashanths
Real Real Value Promoter North Usman Road, T
1.4 lakh
Gold Tower
Nagar
Coromandel Plaza
Suryavardhan Estates Navalur, OMR
2.5 lakh
Express Mall
Indian Express
Off Anna Salai
8 lakh
DLF Mico Mall
DLF Limited
Egmore
4 lakh
Chennai
Central Srinivasa Shipping & Nungambakkam High Road
1.2 lakh
Mall
Property development
& Pantaloon
River Side Mall
Marg Constructions
Karapakkam, OMR
4 lakh
Gee Gee mall
Gee Gee Kushaldas
Poonnamallee High Road
1.8 lakh
Kshitij Town Centre Kshitij
Velachery Main Road
9 lakh
The Souk
Aerens
Vandalur
4 lakh
Allied Mall
Allied
Majestic Navalur, OMR
6.1 lakh
Promoters
The Forum
Prestige Group
Mount Road
12.75 lakh
(5.25 lakh Retail &
7.5 lakh Office)
The Forum
Prestige Group
Vadapalani
11 lakh
(7 lakh Retail & 4
lakh Office)
Orchid Mall
Alliance Projects
Korattur
2.3 lakh
Ozone Mall
Ozone Group
Anna Nagar
10 lakh
The Gateway
Shriram Properties
Perungulathur
8 lakh
P S Mall
P S Group
Velacherry
3 lakh
Source: Trammell Crow Meghraj Market Surveys