Chennai-based Olympia Group has launched two office space projects, and undertaken expansion of the Olympia Tech Park with an additional floor.
These projects are coming up at Guindy, a central business district in the southern part of Chennai, and are aimed at tapping the growing demand for IT office space, according to Ajit Chordia, Managing Director of Olympia Group.
Addressing media persons, he said the two new projects, totalling investments of over ₹100 crore, will be ready by mid- to end-2017. The projects, Olympia Teknos at Guindy SIDCO Industrial Estate, will be of 1.11 lakh square feet of 10 floors and Olympia National will be of about 70,500 sq ft of 10 floors, in the same locality. These will be ready for handover in September and December 2017 respectively.
The expansion of Olympia Tech Park will add 1.20 lakh sq ft to the existing 13 lakh sq ft IT space.
Chordia said the additions to the IT space are modest in comparison to the growing demand. Lease rates are steadily increasing with the rate going up from about ₹40 a sq ft per month to about ₹60-80, depending on the location, over the last couple of years. Absorption of office space is steady at about 4-5 million sq ft a year and without any significant addition in new development, there is likely to be a shortage of quality office space in 2017, he said.