Jewellery Retailers Boost Commercial Real Estate in Tamil Nadu
Jewellery retailers are playing a pivotal role in driving the commercial real estate market in Tamil Nadu, particularly in Chennai. According to CBRE South Asia Pvt Ltd, Chennai has become the second-largest leasing market for the jewellery sector in India by 2025, accounting for 27% of the total jewellery leasing activity, a significant increase from 16% in 2024. The city recorded approximately 0.25 million sq. ft of leasing in the jewellery space from 2023 to 2025. Alongside Chennai, cities like Hyderabad, Bengaluru, Delhi-NCR, and Mumbai accounted for over 90% of the total jewellery leasing volume in 2025.
Jewellery retailers are divided into traditional homegrown brands and pan-India chains, each with distinct real estate strategies. Traditional brands prefer owning properties in prime locations, while pan-India players often lease properties. In Chennai, T. Nagar remains the primary jewellery hub, with Anna Nagar emerging as a strong secondary market. Rental values in Anna Nagar range from ₹200 to ₹250 per sq. ft. Retailers avoid malls, opting for standalone buildings on arterial roads for better branding and security.
The expansion of jewellery retailers involves investments beyond gold inventory, focusing on land acquisition, showroom design, and customer experience. Factors like neighborhood affluence, traffic movement, and brand visibility are crucial in real estate decisions. Retailers like VBJ and Thangamayil Jewellery emphasize the importance of location, security, and accessibility in site selection. The trend towards experiential retail is evident, with stores designed to offer premium shopping experiences.
Despite rising gold prices and economic uncertainties, consumer demand for jewellery in Tamil Nadu remains strong, driving the expansion of jewellery brands. Companies like Kalyan Jewellers continue to expand their footprint across Tamil Nadu, focusing on both major cities and smaller towns, adapting their retail strategies to local market demands.