Tamil Nadu urged to create land banks to sustain commercial real estate growth
While cities in Tamil Nadu are experiencing strong demand for commercial real estate, high land costs are limiting the supply of commercial spaces. To address this challenge and maintain growth momentum, the State government should consider creating large land banks, according to experts speaking at the Real Estate and Urban Infrastructure Summit 2026, organised by The Hindu in Chennai on Thursday.
During a discussion on 'The New Growth Triangle: Manufacturing, GCCs and Real Estate', panellists noted that while no single solution exists for land supply issues, models such as Gujarat's land pooling and land leasing could help overcome high costs that dictate land availability for commercial development.
Arun Prasad, Principal Architect at Arun & Associates, Coimbatore, suggested that Tamil Nadu follow Gujarat's example, where land pooling has been successful. He explained that by pooling 1,000 to 2,000 acres from various landowners, Global Capability Centres (GCCs) have been established. The model works because landowners retain ownership while development adds value to their property.
Julian Pradeep Francis, Associate Director at RMZ, urged the State government to create large land parcels and lease them long-term to developers for commercial infrastructure, facilitating city development. He noted that sustainable development is already integrated into RMZ's commercial projects and is gradually being adopted in residential sectors. Regarding GCCs, he pointed out that Pune and Gurgaon have crossed 100 million sq. ft., while Chennai's progress has slowed.
Kanchana Krishnan, Commercial Head at ANAROCK, observed that India has evolved from business process outsourcing (BPO) to research and development (R&D) hubs, becoming a value creator. While Hyderabad and Bengaluru lead in GCCs, Chennai continues to see good supply in specific pockets. She predicted significant commercial space development in all extended areas of the city.
M. Sabareeswaran, Senior Vice President at Casagrand Commercial, highlighted integrated construction development—including theme parks, malls, and hotels—in China and recommended replicating this in Tamil Nadu cities such as Tiruchi and Madurai. He also noted Thoothukudi's emergence as a promising hospitality destination.
The session was moderated by Soundariya Preetha, Deputy Chief of Bureau (Coimbatore) at The Hindu. She cited Tirupur as an example of energy sustainability, where renewable energy generation far exceeds consumption, allowing excess power to be fed into the State grid.
The summit was presented by Casagrand in association with Adissia Developers, with support from associate partners Navin's and Mindspace REIT, banking partner State Bank of India, insurance partner United India Insurance, academic partner Saveetha College of Architecture & Design, industry partner CREDAI Chennai, television partner Puthiya Thalaimurai, and digital news partner The Federal.
