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Home , Ambattur, Madhavaram Junction, Maraimalai Nagar, Oragadam, Periapalayam, Puduvoyal

INDUSTRIAL JUNE 2019 MARKETBEATS

INR 24 INR 60Mn/acre INR 200Cr. WAREHOUSE RENTAL IN AVERAGE LANDRATE IN TOTAL LAND SALES - O R A G A D A M ( H 1 2 0 1 9 )

HIGHLIGHTS ECONOMIC INDICATORS Stable broad-based demand 2017 2018 2019 Forecast Warehousing demand was robust in the first half of 2019 on the back of growing space GDP Growth 7.2% 6.8% 7.0% take-up by E-commerce, Manufacturing and Food Processing companies. Some CPI Growth 3.6% 3.5% 3.4% examples include taking up warehouse space near and Flipkart Consumer Spending 7.4% 8.1% signing up 0.2 msf of warehouse space near Peruvayal, NH5 corridor. Demand for 7.1% Government Final 14.2% 9.2% industrial sheds has also gone up in the Northern Corridor comprising of Madhavaram, Consumption Expenditure 15.0%

Redhills, , and Bypass road as several small and medium Source: Oxford Economics, Central Statistics Office scale industries were seen actively leasing the space. Reviving the proposed Chennai- port and speeding up the completion of Outer Ring Road which could reduce travel time to prominent warehousing hubs have been positive and are driving the demand INDUSTRIAL AND WAREHOUSE RENTS along GST and NH-5 corridors. Meanwhile, areas such as , , H 1 2 0 1 9 Tamaraipakkam, , Periyapalayam and Thatchoor which are in close proximity to the upcoming defense corridor are gaining traction. 30 12%

25 10%

SH 50B emerging as warehousing Hub 20 8% Mannur-Mappedu corridor is undergoing a transformation on the back growing organized warehousing developments. Connectivity, availability of land parcels at affordable rates 15 6% and presence of skilled workforce in the adjoining areas have been attracting major 10 4% warehouse developers such as Logos and Indospace. Logos has recently acquired a 50- 5 2% acre functional warehousing park from a major city based developer. Indospace has

proposed a 350,000 sf. logistics park near Mevalurkuppam. Driven by large scale 0 0%

Manali Mannur

investments and prominent developers, we expect SH 50B transforming as a major Poonamalle

warehousing cluster in the medium term. Madhavaram

Irrungattukottai

Gummidipoondi

MaraimalaiNagar Periyapalayamroad

Rental growth in prominent markets Sriperumbudur Oragadam - Robust demand from E-commerce players and Construction companies have pushed Average Rental Manufacturing (H1 2019) Average Rental Warehousing (H1 2019) A Cushman & Wakefield warehousing rentals in Mannur and Mappedu submarkets by 3-4% on a quarterly basis. Manufacturing Y-o-Y Growth Warehousing Y-o-Y Growth Research Publication We expect rentals in Sriperumbudur corridor to go up by 3-5% over next 6-9 months due Source: Cushman and Wakefield Research www.cushmanwakefield.com to tight vacancies and limited upcoming supply until Q4 2020. CHENNAI INDUSTRIAL MARKETBEATS JUNE 2019

Rohan Sharma Director L A N D R A T E S - J U N E 2 0 1 9 Research Services, Tel: +91 124 4695555 [email protected] Submarket INR MN/ACRE US$ MN/ACRE EURO MN/ACRE Y-O-Y Change

Ambattur 160 2.30 2.02 0%

Poonamallee 100 1.44 1.26 0%

Sriperumbudur – Oragadam 24 0.35 0.30 4%

Irrungattukottai 25 0.36 0.32 11%

Madhavaram 60 0.86 0.76 9%

Gummidipoondi 15 0.22 0.19 0%

Periyapalayam road 16 0.23 0.20 7%

Manali 16 0.23 0.20 7%

Mannur 13 0.19 0.16 4%

Maraimalai Nagar 45 0.65 0.57 0%

Note: Quoted land rates for serviced industrial land parcels are mentioned Submarkets : Ambattur- Ambattur, - , Noombal, Velapanchavadi; Sriperumbudur & Oragadam – Sriperumbudur, Oragadam, Pillaipakkam, Vallam Vadagal; Irrungattukottai - Irrungattukottai, ; Madhavaram - , Madhavaram - Redhills road, Ennore Bypass road; Gummidipoondi - Ponneri, Puduvoyal; Periyapalayam road - Periyapalayam road, Redhills – Tamaraipakkam; Manali - Tiruvottiyur, Manali, , Ennore; Mannur - Mappedu, Mannur, Polivakkam, Sengadu; – Maraimalai nagar to Mahindra World City (GST Corridor) Percentage growth are in local currency; Y-O-Y – Year on Year Conversion Rate: US$1= 69.55 INR and Euro 1 = INR 79.1.

SIGNIFICANT TRANSACTIONS

Buyer/Lessee Seller/Lessor Type Submarket Sale/Lease Area

Parveen Travels India Radiators Industrial Land Sale 8.5 Acres A Cushman & Wakefield Research Publication Royal Enfield Indospace Warehouse space Oragadam Lease 220,000 sf Safexpress MK International Warehouse Space Panapakkam Lease 110,000 sf

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