T.N. government must create land banks to boost commercial real estate: experts

Experts at a summit in Chennai on Thursday urged the Tamil Nadu government to establish land banks to stimulate growth in the commercial real estate sector, citing high land prices as a major constraint on supply. The discussion took place during the Real Estate and Urban Infrastructure Summit 2026, hosted by The Hindu at the ITC Grand Chola hotel. Participants highlighted the need for innovative strategies such as land pooling and long-term leases to facilitate development amid rising demand for commercial properties. The summit focused on “The New Growth Triangle: Manufacturing, GCCs and Real Estate,” with several industry professionals emphasizing the importance of addressing land availability issues. Arun Prasad, principal architect with Arun & Associates in Coimbatore, noted that Gujarat's land pooling model had successfully enabled the creation of Global Capability Centres (GCCs). By consolidating 1,000 to 2,000 acres of land from multiple owners, the model allows for development while retaining individual land ownership, thereby increasing property values. Julian Pradeep Francis, associate director at RMZ, suggested that the Tamil Nadu government should create substantial land parcels and offer them on long-term leases to developers. This approach, he argued, would support the development of commercial infrastructure and promote sustainable urban planning. He added that while RMZ has embraced sustainability in its commercial projects, the concept is gradually extending into the residential sector as well. Francis observed that cities like Pune and Gurgaon have surpassed the 100 million square feet benchmark for GCCs, whereas progress in Chennai has been slower. Kanchana Krishnan, commercial head at ANAROCK, emphasized the shift in India from traditional business process outsourcing centers to advanced research and development hubs. She noted that while Hyderabad and Bengaluru are excelling in the GCC domain, Chennai still holds potential for commercial development in specific regions. Krishnan predicted that the outskirts of the city will see considerable expansion in commercial space over time. M. Sabareeswaran, senior vice president of leasing and business development at Casagrand Commercial, advocated for integrated construction developments similar to those seen in China, involving theme parks, malls, and hotels. He proposed replicating such models in cities like Tiruchi and Madurai, highlighting Thoothukudi's growing appeal for the hospitality industry. Soundariya Preetha, deputy chief of bureau (Coimbatore) at The Hindu, who moderated the session, mentioned that Tirupur serves as a model for energy sustainability, where renewable energy production significantly exceeds local consumption. Excess power generated in the region is fed back into the state grid, showcasing a successful example of sustainable practices. The summit, organized by The Hindu in partnership with Casagrand and supported by several key stakeholders, aimed to foster dialogue around urban infrastructure and real estate development. Key partners included Navin’s and Mindspace REIT as associate partners, the State Bank of India as the banking partner, United India Insurance as the insurance partner, Saveetha College of Architecture & Design as the academic partner, CREDAI Chennai as the industry partner, Puthiya Thalaimurai as the television partner, and The Federal as the digital news partner. The event underscored the collaborative efforts needed to drive forward the real estate and infrastructure sectors in Tamil Nadu.