Tamil Nadu: Key Investment Hub - Robust Infra & Business-Friendly Environment

Chennai, Feb 23 (PTI) Various factors including business friendly environment, strategic location, robust infrastructure has led Tamil Nadu's emergence as a key investment hub, a report by real estate consulting firm CBRE South Asia Pvt Ltd has revealed.

The report jointly prepared by CBRE South Asia in association with Confederation of Indian Industry Tamil Nadu recently said the industry specific policies released by the Tamil Nadu government have also played a major role in attracting investments and generating employment, significantly.

The policies rolled out by the government offer subsidies and incentives thereby driving growth in key sectors like electronics, automobiles, information technology and IT enabled services, data centres among others.

"The government is developing industrial and defence corridors to enhance the industrial ecosystem further promoting balanced growth across all districts," the report said on Sunday.

On the real estate front, the report said the office space in Chennai was likely to cross 100 million sq ft by end of 2026 with total commercial space currently at 89 million sq ft. "The private equity investments made in the Chennai office assets touched USD 1.19 billion in 2022-24", it said.

The influx of capital and entry of prominent developers have facilitated the construction of high-quality office buildings, providing various space options for occupiers, it said.

The Chennai office space which was once dominated by technology is currently witnessing a shift towards companies engaged in banking, financial services and insurance industry (BFSI). "Chennai is also positioning itself as a major hub for Global Capability Centres and it is ranked third in GCC leasing after Bengaluru and Hyderabad. GCC leasing in Chennai stood at 2.9 million sq ft in 2024", the study said.

With its strong talent pool, corporate ecosystem and abundant quality office space, the state has solidified its position as a preferred destination for Global Capability Centres.

"Tamil Nadu's strategic vision of becoming a USD 1 trillion economy by 2030 is driven by its robust industrial and services sectors. The continued attractiveness of the state as an investment destination in India, particularly for global, domestic manufacturing players, is expected to further push it to the forefront of innovation and technological evolution, CBRE Chairman and CEO India, Southeast Asia, Middle East and Africa, Anshuman Magazine said.

Tamil Nadu's strong manufacturing base provides a solid foundation for the growth of its services sector across cities such as
Coimbatore, Madurai and TIruchirappalli, he said.

"We expect investor interest in these cities to grow substantially in the future as they look for expansion avenues, thereby safeguarding the state's position as a premium investment destination in the long run," he added.