CHENNAI: The city’s office market delivered one of its strongest performances on record in 2025, with Global Capability Centres (GCCs) accounting for 41% of leasing in the second half of the year, driven largely by manufacturing and multi-functional operations, according to a report by Knight Frank India.

The total leasing volumes touched 10.1 million sq ft, the second-highest annual absorption after the 2023 peak.

Leasing grew 24% year-on-year, even as activity moderated slightly in the July-December period, when transactions eased 2% year-on-year to 5.0 million sq ft, the report said.

Flexible workspace operators emerged as a fast-growing segment, contributing 23% of leasing.

Peripheral Business Districts along OMR and GST Road were the fastest-growing clusters, together accounting for 36% of second-half leasing, the report said.

Annual housing sales rose 12% year-on-year to 18,262 units in 2025 signalling sustained buyer confidence despite gradual price firming. New residential launches increased 20% year-on-year to 20,865 units.

Unsold inventory stood at 19,332 units. Average residential prices increased a measured 7% year-on-year to Rs 5,135 per sq ft.