Given an all-round growth over the past two years in the state, particularly from the software sector, coupled with the increased activities from other sectors, a shortfall of around four million sq ft commercial space is seen in Chennai alone during 2006, said the sources.
According to the available statistics, the demand for commercial space during the year is estimated to be between 6.5 million sq ft and seven million sq ft. However, the supply is expected to be less than 50% - around three million sq ft only during the year, the sources maintained.
"In the last three months alone over one million sq ft commercial space has been absorbed by leading IT companies such as Satyam, Cognizant, Scope International, AIG, US Tech, and few others from other areas," said sources.
Despite huge demand for commercial space, real estate majors such as DLF, GMR, Vishwarti Builders, Mars Construction, L&T are not expected to go aggressively due to environment problems as well as RBIs stricture to banks on lending to the sector.
With majority of the realtors focusing on developing space for IT and ITES companies due to premium and immediate transactions, the demand for office space has gone up sharply and is estiamted to be around 3,00,000 sq ft during the year. Following which the rental per sq ft, particularly in the central business district (CBD), has skyrocketed to Rs 50 as against last years Rs 35 to Rs 40, said the sources.
With the massive expansion of existing IT majors and the entry of newer companies into the city, realtors jacked up the per sq ft construction cost to over 100% in the areas such as Adyar, Velachery, Taramani, Tiruvanmiyur, Sholinganallur, Pallikaranai, the sources said.