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

(Eds: Disclaimer: The following press release comes to you under an arrangement with PR Newswire. PTI takes no editorial responsibility for the same.) CHENNAI, December 4, 2018/PRNewswire/ --A decade after its first release, the Tamil Nadu government has revised the Information Communication Technology (ICT) Policy. The policy envisages incubators, start-up accelerators and the promotion of research parks in the state via the Public-Private Partnership (PPP) model. The Tamil Nadu government is setting up ELCOSEZ, an IT-ITeS Special Economic Zone (SEZ) designed to attract investment, with locations in Chennai, Coimbatore, Madurai, Trichy, Salem, Tirunelveli and Hosur."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, Office Services (Chennai) at Colliers International 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 Tamil Nadu 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 Chennai 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, Chennai 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 Chennai over the next three years is comprised of IT Buildings and IT-SEZs, offering multiple options to occupiers. The technology sector constituted 70-80% of the total office demand in Chennai during 2015-2017. The dominance of technology sector is likely to continue with the push from the ICT policy. We expect Chennai to remain the front-runner due to expansion of technology occupiers 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 real estate demand in other emerging cities such as Coimbatore, Madurai and Trichy to strengthen.About Colliers International Group Inc. Colliers International Group Inc. (NASDAQ: CIGI) (TSX: CIGI) is a top tier global real estate services 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 real estate services 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 institutional real estate investors.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 International Association of Outsourcing Professionals for 13 consecutive years, more than any other real estate services firm. Colliers is ranked the number one property manager in the world by Commercial Property Executive 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 news 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.Source: Colliers International India PWRPWR