Chennai, India – The glittering allure of gold and precious stones is not only captivating consumers but also igniting a significant surge in Tamil Nadu’s commercial real estate market. Jewellery retailers, from established homegrown brands to burgeoning national chains, are emerging as pivotal demand drivers, strategically expanding their footprints across Chennai and its rapidly growing tier-II cities. This aggressive expansion underscores a fundamental shift, where real estate selection has transcended mere location, evolving into a critical component of their overarching growth strategy, heavily influenced by factors like visibility, customer accessibility, and overall investment viability.
Chennai’s Ascendancy: A New Jewellery Leasing Hub
Analysis by leading real estate consultancy CBRE South Asia Pvt Ltd. reveals a dramatic transformation in Chennai’s commercial leasing landscape for the jewellery sector. In 2025, the city solidified its position as India’s second-largest leasing market for jewellery brands, commanding an impressive 27% of the total leasing activity. This represents a substantial leap from its 16% share in 2024, signaling a robust and accelerating trend. Over the period of 2023-2025, Chennai witnessed approximately 0.25 million square feet of leasing within the jewellery segment alone.
This remarkable growth places Chennai in an elite group of prime commercial real estate markets. CBRE’s findings indicate that, alongside Hyderabad, Bengaluru, Delhi-NCR, and Mumbai, Chennai accounted for over 90% of the total jewellery leasing volume in 2025. This concentration highlights the strategic importance of these urban centers in the expansion plans of major jewellery players.
Defining the Ideal Retail Space: Size, Location, and Rental Dynamics
Industry insiders reveal that typical showroom spaces sought by jewellery retailers range from a minimum of 3,000 square feet. However, larger, established brands often aim for more expansive properties, spanning between 10,000 to 12,000 square feet. This preference for larger footprints reflects a growing emphasis on creating immersive and experiential retail environments.
The rental market in prime high-street locations within Tamil Nadu reflects the high demand and strategic importance of these spaces. Rental rates typically fluctuate between ₹250 to ₹300 per square foot, indicating a premium associated with well-positioned and accessible retail units.
Differentiated Strategies: Homegrown vs. Pan-India Players
The expansion strategies within the jewellery retail sector can be broadly categorized into two distinct approaches, driven by the fundamental business models of traditional homegrown brands and pan-India chains.
V.S. Sridhar, Executive Managing Director for Tamil Nadu & Kerala and Head of GCC Advisory (Operations & Emerging Cities) at Cushman & Wakefield, Chennai, elaborates on these differing philosophies. "Traditional homegrown jewellery brands typically prefer owning their properties and focus on securing prime locations with long-term value," he states. "For these brands, real estate is an integral part of their business model and can account for 2% to 3% of the overall project cost. Pan-India players, on the other hand, largely operate on a leasing model."
This distinction highlights a key difference in capital allocation and long-term vision. While homegrown brands often view property ownership as a form of asset building and brand permanence, pan-India players prioritize flexibility and the ability to quickly scale operations through leased spaces, freeing up capital for inventory, marketing, and technological advancements.
Location, Location, Location: Beyond the Mall
A notable trend observed by industry experts is the general avoidance of malls by jewellery retailers in Tamil Nadu, with a strong preference for standalone buildings situated on prominent arterial roads. This strategic choice is driven by several critical factors.
"Brands generally avoid malls in Tamil Nadu and prefer standalone buildings on prominent arterial roads," Sridhar explains. "Such properties offer greater flexibility for branding, facade visibility, security infrastructure, and product display. Mall-based jewellery retail works better in luxury retail destinations such as Delhi and Gurugram."
The emphasis on standalone buildings stems from the unique requirements of jewellery retail. Enhanced facade visibility allows brands to create a strong visual identity and attract footfall from a distance. The ability to customize security infrastructure within a dedicated building is paramount for safeguarding high-value inventory. Furthermore, standalone properties offer greater freedom in designing interior layouts, optimizing product display, and creating bespoke customer experiences, unconstrained by mall regulations or aesthetic guidelines.
Hot Spots and High Rentals: Chennai’s Jewellery Corridors
Within Chennai, established jewellery corridors continue to command premium rental values, reflecting their enduring appeal and proven track record of attracting affluent clientele. According to Sridhar, rental values in these prime areas remain among the highest in the state.
T. Nagar: The Unrivaled Epicenter
T. Nagar, specifically G.N. Chetty Road, stands out as a prime jewellery hub. Here, rental rates typically range between ₹250 and ₹300 per square foot. This concentration of jewellery stores in T. Nagar has solidified its reputation as the city’s undisputed jewellery capital, attracting a constant stream of discerning buyers.
Anna Nagar: A Growing Contender
Anna Nagar has emerged as a strong secondary market, witnessing significant jewellery retail activity. Rentals in this vibrant locality generally range from ₹200 to ₹250 per square foot. As the city expands, Anna Nagar’s strategic location and well-developed infrastructure make it an attractive proposition for retailers looking to tap into diverse customer segments.
The Leasing Advantage: Flexibility and Capital Deployment
Anshuman Magazine, Chairman and CEO of CBRE for India, South-East Asia, Middle East, and Africa, reinforces the strategic importance of leasing in the jewellery sector’s expansion. "Leasing continues to be the preferred expansion model for most organised jewellery retailers, as it provides operational flexibility while allowing brands to channel capital towards inventory, technology, and customer experience," he states.
This "asset-light" approach allows retailers to maintain agility in a dynamic market. By leasing rather than owning, brands can allocate significant capital towards enhancing their product offerings, investing in cutting-edge retail technology, and creating memorable customer experiences, all of which are crucial for standing out in a competitive landscape.
Evolving Store Formats: Larger Footprints for Enhanced Experiences
A significant trend in jewellery retail leasing is the increasing demand for larger store formats. Magazine notes, "In 2025, stores above 8,000 square feet accounted for 50% of total leasing activity in the jewellery sector, compared with just 14% in 2019." This substantial increase underscores a paradigm shift towards experiential retail, where larger spaces are utilized to create more immersive and engaging customer journeys.
Suburban Expansion and Tier-II City Growth
As Chennai’s urban landscape expands, jewellery brands are strategically establishing a presence in suburban catchments, recognizing the growing affluence and consumer base in these areas. Neighborhoods such as Velachery, Chromepet, and Tambaram are increasingly becoming key targets for expansion.
Beyond the metropolitan reach of Chennai, a wave of growth is also being witnessed in other prominent cities across Tamil Nadu. Coimbatore, Madurai, Tiruchi, Erode, and Karur, along with a multitude of tier-II and tier-III towns, are emerging as fertile grounds for jewellery retailers looking to broaden their reach and capture new markets. This pan-Tamil Nadu expansion strategy reflects a calculated effort to tap into diverse consumer demographics and capitalize on the burgeoning economic growth in these regions.
Beyond the Gilded Stakes: Investments in the Retail Experience
The modern jewellery retail expansion strategy extends far beyond the acquisition of gold inventory. Capital is now being strategically deployed across a spectrum of critical areas:
- Land Acquisition and Rentals: Securing prime locations remains a fundamental investment.
- Showroom Design and Aesthetics: Creating visually appealing and brand-aligned interiors.
- Facade Development: Enhancing external visibility and brand presence.
- Vault Infrastructure: Ensuring state-of-the-art security for valuable merchandise.
- Experiential Retail Spaces: Designing environments that foster engagement and customer loyalty.
Several key factors are now shaping real estate decisions, moving beyond traditional metrics to encompass a more holistic understanding of the consumer and market dynamics:
- Neighborhood Affluence: Targeting areas with a high concentration of potential buyers.
- Traffic Movement and Accessibility: Ensuring ease of access for customers.
- Brand Visibility: Maximizing exposure and recognition.
- Security and Safety: Creating a secure environment for both customers and inventory.
Security and Convenience: Paramount Considerations for Jewellery Retailers
Amarendran Vummidi, Managing Partner at VBJ (Vummidi Bangaru Jewellers), emphasizes the critical importance of security and customer convenience in site selection. "When we choose a location for our business, security is our primary consideration. Customers who walk out of our premises must feel safe. Alternatively, the location should be in a busy area where there is natural surveillance," he states.
The evolution of customer expectations has also brought parking facilities to the forefront of site selection criteria. "Adequate car parking has become a critical factor in site selection for jewellery retailers. Properties that can accommodate either open parking areas or multi-level stack parking systems are preferred," Vummidi adds. This reflects a growing demand for a seamless and comfortable shopping experience, where logistical challenges are minimized.
VBJ’s Vision: Experiential Retail and Strategic Expansion
VBJ recently unveiled a multi-level, 14,000-square-foot showroom on Chennai’s Anna Salai, a testament to their commitment to a premium retail experience. The showroom is meticulously designed to cater to diverse customer preferences:
- Ground Floor: Dedicated to gold, precious stones, and intricate jadau jewellery.
- First Floor: Showcases diamond, solitaire, and platinum collections in a more curated setting.
- Second Floor (Atelier VBJ): A departure from conventional retail, this floor offers a private and immersive environment with dedicated lounges, private viewing rooms, and personalized service, epitomizing the shift towards experiential retail.
"The layout has been structured so each category has its own environment, making the journey more intuitive," Vummidi explains. "We have paid close attention to how the store transitions across floors – from the material choices to the overall spatial experience – so that each level serves a distinct purpose while remaining connected to the brand’s roots."
Looking ahead, VBJ is poised for significant expansion:
- Chennai: A new showroom is set to open on Usman Road.
- Coimbatore: Development of their largest-format store to date, spanning nearly 21,000 square feet.
- Tiruchi: Launch of a new outlet.
- Madurai: Active evaluation of opportunities, with a location expected to be finalized within the next three to four months.
Thangamayil Jewellery: Adapting to Evolving Customer Expectations
For Madurai-based Thangamayil Jewellery Ltd., location remains a cornerstone of store performance, directly impacting customer engagement and sales. Ba. Ramesh, the company’s Joint Managing Director, highlights the rapid evolution of customer expectations. "Unlike fashion or lifestyle retail, jewellery stores cannot rely purely on impulse purchases. Customers visit with their families, spend considerable time evaluating purchases and expect a premium yet secure shopping environment. Therefore, visibility, safety, and accessibility become extremely important. As a result, showroom infrastructure and location selection have become closely linked to overall brand positioning and customer perception," he states.
Thangamayil is increasingly focusing on sites outside traditional bazaar areas, prioritizing locations that offer:
- Easier Access: Reducing travel time and inconvenience for customers.
- Better Parking: Addressing a key logistical concern for families.
- Premium Shopping Experience: Creating an environment that matches the perceived value of the merchandise.
The Importance of Visibility for Flagship Stores
For flagship stores, visibility is not merely a desirable attribute but a strategic imperative. Ramesh explains, "The ideal showroom size we look for is a minimum of approximately 5,000 square feet, depending on the city profile, market potential, and target audience, as the industry is increasingly moving towards experiential retail rather than simply displaying products."
Corner properties and road-facing buildings with expansive facades are highly preferred, as the showroom itself becomes a powerful statement of brand strength and market presence. This emphasis on visual impact is crucial for capturing consumer attention and reinforcing brand identity.
Expanding Footprints: A Year of Growth
Thangamayil Jewellery has ambitious expansion plans for the coming year, aiming to open 10 to 15 new stores. This aggressive growth strategy underscores their confidence in the burgeoning demand for jewellery across Tamil Nadu and their commitment to expanding their market share.
Kalyan Jewellers: An Asset-Light Growth Strategy
Kerala-headquartered Kalyan Jewellers has established a significant presence in Tamil Nadu, with 29 touchpoints across major cities like Chennai and Coimbatore, as well as numerous smaller towns. The company adopts a discerning approach to market entry, only establishing a presence when it identifies retail spaces that align with the brand’s scale and customer experience aspirations.
Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers, outlines their expansion philosophy: "Most of our properties operate on a long-term lease or rental model, which supports our asset-light growth strategy. However, we do have some marquee properties that we have developed ourselves over the years."
This hybrid approach balances the flexibility of leasing with the strategic advantage of owning prime assets. Kalyanaraman further elaborates on the nuanced approach to store size: "Square footage is not one-size-fits-all. In major retail districts, we look for larger spaces that can accommodate a wider product range and provide a more immersive shopping experience, whereas in tier-II and tier-III cities, formats are more compact and optimized for local demand."
Candere: A Digital-First Approach for the Next Generation
Kalyan Jewellers is also actively pursuing expansion for its Gen Z and millennial-focused brand, Candere. This brand adopts a more contemporary and digital-first retail approach, catering to a younger demographic.
"Each brand follows a distinct retail strategy based on customer behavior and market positioning," Kalyanaraman concludes. Candere typically operates through smaller-format stores in high streets and malls, featuring minimalist interiors and a lifestyle-oriented shopping experience. The focus is on self-discovery and everyday jewellery purchases, reflecting a shift in consumer preferences towards more accessible and trend-driven pieces.
Sustained Demand Amidst Economic Headwinds
Despite prevailing economic uncertainties, including rising gold prices and calls for reduced gold consumption to conserve foreign exchange, consumer demand for the yellow metal in Tamil Nadu remains remarkably robust. This sustained consumer appetite is the primary catalyst driving the aggressive expansion strategies of jewellery brands across the state, ensuring a continued surge in commercial real estate demand. The allure of gold, intertwined with evolving consumer preferences for experiential retail and strategic brand positioning, continues to shape a dynamic and thriving market for both jewellery and the commercial real estate that houses it.
