IT and ITES space absorption in the city has seen a 17% dip in the first half of this year compared to the corresponding period last year. About 2.3 million sqft ITITES office space was leased out during the first half of last year, but it fell to 1.92 million sqft this year, according to a report on Chennai IT space absorption brought out by realty firm Colliers International.
The fall was nominal, from 1.3 million sqft to 1.18 million sqft, between the first quarter last year and the corresponding period this year, but it went down by 0.26 million sq ft from 1 million sqft to 0.74 million sqft in the second quarter. The demand this year was primarily driven by MNCs like E4E, HCL and Solution Star, and banking, financial services and insurance firms like World Bank and City Corp Services. Buildings leased out during the second quarter this year are Alpha City OMR, TRIL Taramani, SP Infocity , Tecci Park and DLF SEZ.
“The average Chennai market is about 4 million sq ft annually , of which a good 8085% is ITITES. The forecast for this year looks similar with the city closing in on about 4 million sq ft of which about 80% can be attributed to ITITES sector. Considering the transactions that have been concluded and the future pipeline, Chennai should be doing similar numbers this year as well,“ said Colliers senior associate director Shaju Thomas.
Despite its drawbacks like clogged roads, long traffic jams and poor support infrastructure like lack of sewerage and water connection, Old Mahabalipuram Road continues to be the preferred destination of IT firms keen on setting up shops as well as expanding activity in the city.About 71% of the total absorption in the second quarter of this year happened on OMR, the report said. MountPoonamallee Road accounted for 18% and the central business districts 7%.
Chennai has a whopping 8.6 million sq ft of IT space available for fit-outs. About 54% of it is again on OMR.Ambattur, where many industrial estate plots were redeveloped for IT parks, has about 17% of Chennai's vacant IT space. CBD areas account for 15% of vacant stock, GST Road 7% and Mount-Poonamallee Road about 2%.
In view of the huge vacant inventory , developers may remain cautious on completion and launch of new projects, the report said. While rents are expected to increase marginally in pre-toll areas of OMR, other micro markets are expected to remain under pressure, the report said.
Says Aware Of Ill Effects Of Alcohol But Can't Order Closure Of Shops For Kalam Funeral
Liquor is an essential commodity for 30% of peo ple in Tamil Nadu, and hence the gov ernment-run Tasmac liquor shops could not be ordered to be closed during the funeral of former President A P J Abdul Kalam, the Madras high court has said.
Creating ripples, yet again, Justice C S Karnan on Wednesday said for 30% of the population, liquor is as essential as services like fire, police and milk supply . “In five star hotels, liquor is served from 5am to 11pm. When people in five star hotels can drink, why not these people?“ he asked.
The judge was making the oral observations when advocate K Baalu of Advocates Forum for Social Justice mentioned the matter before the judge, and wanted the court to order closure of all liquor shops in Tamil Nadu on Thursday , the day when Kalam would be laid to rest at Rameswaram.
The state's counsel, however, informed the court that a government order had already been issued declaring holiday for Tasmac shops in Ramanathapuram district for two days July 29 and 30 in defer ence to the former President.
During arguments, the judge observed that he had great respect for Kalam, and that was the reason why he himself was leaving for Rameswaram immediately to take part in the funeral. However, courts cannot direct the government to close shops without hearing the top officials of the department concerned, he said.
“We have to appreciate the policy of the government in declaring holiday , and for closing liquor shops for two days in Ramanathapuram district.But the court cannot interfere with the government's revenue,“ Justice Karnan said.
Noting that the government declares holidays for Di wali and Pongal, the judge said, “People drink brandy and celebrate these festivals. I am a science student, and I know the ill effects of liquor. It will affect brain, liver and other parts. But this is a government policy .“
Tasmac's standing counsel SMuthuraj said since the chief secretary , home secretary and ministers were all in Ramanathapuram in view of Kalam's funeral and visit of chief ministers and other dignitaries, it would be difficult to obtain instructionsviews from them in response to the petition. The judge then said: “This is a good case, and whether the GO would apply to Tasmac employees or not could be decided later.“
Liquor shops to remain shut today
Chennai: The Tamil Nadu government on Wednesday evening ordered closure of all liquor shops and bars in the state on Thursday as a mark of respect to late President APJ Abdul Kalam. An order issued by the state home department on Wednesday said based on a request by the commissioner of prohibition and excise, the government has decided to order closure of all such shops.
The government on Tuesday had declared a public holiday for all government offices, private establishments and banks on Thursday under the Negotiable Instruments Act, but there was no mention of closure of Tasmac shops.
