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Tamil Nadu Govt. Revises the ICT Policy With an aim to Boost Confidence and Attract IT Occupiers Over the Next Five Years

Press Trust of India  |  CHENNAI 

/ -- A decade after its first release, the government has revised the (ICT) Policy. The policy envisages incubators, start-up accelerators and the promotion of research parks in the state via the (PPP) model. The government is setting up ELCOSEZ, an IT-ITeS Special Economic Zone (SEZ) designed to attract investment, with locations in Chennai, Coimbatore, Madurai, Trichy, Salem, and

"One of the policy's key focus is being abreast with cutting-edge and newer technologies, which is essentially need of the hour. The emphasis on Tier B locations and the incentives promised would be welcomed by a large number of IT/ES firms, if executed as planned. And with Global Investment Meet (GIM) scheduled in 2019, the revised ICT policy could not have come at a better time than now," said Shaju Thomas, Director, (Chennai) at India

As per Colliers Research, the state GDP is likely to increase as a consequence of this policy implementation, as should IT exports. Based on the data released by the state IT department, IT exports from have grown by 8.5% in FY2017-18, compared to 3.3% in FY2015-16. The revised policy is expected to boost confidence and attract IT occupiers over the next five years. We expect occupiers planning to set-up back-end IT operations to consider Tamil Nadu.

The office market constitutes 55.5 million sq. ft. of Grade A inventory, with an average vacancy rate of 11%. With new supply of 14.6 million sq. ft. scheduled over 2019-2021, the leasing activity as a result of the new policy initiative is likely to increase over the next couple of years. Since there is a lead time to complete new developments, we expect demand to percolate to Tier II and III cities from 2021 and beyond, however, will likely continue to be occupiers' first choice for office space.

The policy, if implemented well and as planned, should attract large scale IT back-office occupiers to the state. About 96% of the total supply in over the next three years is comprised of IT Buildings and IT-SEZs, offering multiple options to occupiers. The constituted 70-80% of the total office demand in Chennai during 2015-2017. The dominance of is likely to continue with the push from the ICT policy. We expect Chennai to remain the due to expansion of and we forecast average annual absorption of 4.9 million sq. ft. over 2019-2021. With the given thrust of Tier II cities, we expect in other emerging cities such as Coimbatore, and to strengthen.

About Group Inc.

Group Inc. (NASDAQ: CIGI) (TSX: CIGI) is a top tier global and investment management company operating in 69 countries with a workforce of more than 13,000 professionals. Colliers is the fastest-growing publicly listed global and investment management company, with 2017 corporate revenues of $2.3 billion ($2.7 billion including affiliates). With an enterprising culture and significant employee ownership and control, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide, and through its investment management services platform, has more than $25 billion of assets under management from the world's most respected

Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice to accelerate the success of its clients. Colliers has been ranked among the top 100 global outsourcing firms by the of Outsourcing Professionals for 13 consecutive years, more than any other firm. Colliers is ranked the number one in the world by for two years in a row.

Colliers is led by an experienced leadership team with significant equity ownership and a proven record of delivering more than 20% annualized returns for shareholders, over more than 20 years.

For the latest from Colliers India, visit To follow us on twitter, simply click on this twitter handle @Colliersintlind and to follow us on LinkedIn, simply click here.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, December 04 2018. 11:30 IST