Jewellery retailers are significantly influencing the commercial real estate landscape in Tamil Nadu, particularly in metropolitan areas like Chennai. As these brands expand their footprint across the city and high-growth tier-II markets, the selection of real estate has emerged as a fundamental aspect of their growth strategies. Key factors such as location, visibility, and customer accessibility are becoming increasingly critical in shaping investment decisions. This trend is underscored by a recent analysis from real estate consultancy CBRE South Asia Pvt Ltd, which highlights Chennai's rise as the second-largest leasing market for the jewellery sector in India, capturing 27% of the total jewellery leasing activity by 2025, up from 16% in 2024. Notably, the city accounted for approximately 0.25 million square feet of leasing activity in the jewellery space during 2023-2025.
Chennai, along with other major cities including Hyderabad, Bengaluru, Delhi-NCR, and Mumbai, is projected to contribute over 90% of the total jewellery leasing volume in 2025. Insights from industry sources indicate that jewellery retailers typically seek showroom spaces of 3,000 square feet and above, with larger brands often opting for properties ranging from 10,000 to 12,000 square feet. In prime high-street locations, rental rates fluctuate between ₹250 to ₹300 per square foot. The commercial real estate strategies of jewellery retailers can be broadly categorized into two groups: traditional homegrown brands and pan-India chains. V.S. Sridhar, Executive Managing Director at Cushman & Wakefield, explains that traditional brands generally prefer to own their properties in prime locations, viewing real estate as a crucial component of their business model. In contrast, pan-India players tend to favor a leasing model, which allows greater flexibility.
Sridhar notes that jewellery retailers in Tamil Nadu typically shy away from malls, instead opting for standalone properties on prominent arterial roads. Such locations offer enhanced branding opportunities, better visibility, and improved security infrastructure, which are essential for effective product displays. Anshuman Magazine, Chairman and CEO of CBRE for the region, emphasizes that leasing remains the preferred model for most organized jewellery retailers, providing operational flexibility while enabling brands to invest capital into inventory, technology, and customer experience enhancements. Notably, in 2025, stores larger than 8,000 square feet accounted for 50% of total leasing activity in the jewellery sector, a significant increase from just 14% in 2019.
In terms of rental values, Chennai's established jewellery corridors continue to command some of the highest rates in the state. For instance, rental prices on G.N. Chetty Road in T. Nagar range from ₹250 to ₹300 per square foot, while Anna Nagar sees rates between ₹200 to ₹250 per square foot. This trend underscores the growing importance of strategic real estate decisions for jewellery retailers in Tamil Nadu, as they navigate the competitive landscape to optimize their presence and drive growth in a booming market.