Real estate is widely accepted as an ideal investment, particularly in cities. Chennai has always been a hub of employment opportunities. Currently, Chennai is witnessing a high demand for housing, making it one of the favourite residential real estate investment destinations in the country.
Chennai, one of the four metros in the country, holds quite a few distinctions. Known as the ‘Detroit of India’, thanks to its automobile industry, Chennai is also famous for its passion for music, ancient temples that are architectural wonders, scenic beaches and more.
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Real Estate Market in Chennai
Chennai, being an industrial hub and a fast-growing metro city, has always seen a higher demand for housing. Of late, the city, thanks to its status as an IT hub, has been attracting talented young men and women from across the country. As a result, Chennai is witnessing an unprecedented demand for homes.
Like many other residential markets in the country, Chennai had also seen a slump during the Covid-19 pandemic. However, the city’s residential market is poised for a comeback. According to experts and various property portals, real estate prices in Chennai are projected to rise by 5.5% to 6.5% in the second half of 2023.
Considering the potential of the residential real estate market in Chennai, investing in the same in the city is ideal by all counts. With tremendous appreciation anticipated, your investment will yield great results year on year.
Factors Influencing the Real Estate Market in Chennai
Let’s now analyse the various aspects that make Chennai an ideal city to invest in real estate:
Economic growth and stability in Chennai
Chennai has always been an industrial hub. Now with the emergence of the IT industry – the city is home to some of the biggest IT parks in the country such as TIDEL Park, DLF Cybercity, and Embassy Splendid Techzone – Chennai is registering rapid economic growth.
Infrastructure Development in Chennai
While Chennai always has good infrastructure, the city is all set to undergo a massive transformation in the upcoming years. Besides the metro network that is already operational and a slew of major road projects, Chennai is improving its town and municipality roads, sanitation networks and rejuvenating its waterbodies.
Connectivity and Transportation in Chennai
Chennai has a very efficient transportation system comprising bus, suburban railway, and metro networks. All these together ensure seamless connectivity across Chennai.
Employment Opportunities in Chennai
As an industrial hub, Chennai always offered employment opportunities in plenty. Now, with its emergence as an IT hub, Chennai is rapidly turning into a dream destination for employees of the IT and allied industries.
Market Demand and Supply in Chennai
With new employment opportunities coming up, Chennai witnesses a tremendous influx of people from all over the country. Quite naturally, there is an increasing demand for housing in Chennai, which is adequately taken care of by top-notch builders like SOBHA Ltd.
10 Best Areas for Real Estate Investment in Chennai
Having acquainted ourselves with various factors that make Chennai ideal for investment, let’s now find out the top 10 localities in Chennai that are perfect real estate investment destinations.
Best Areas for Investment in Chennai #1 Poonamallee
Located in the western part of Chennai, Poonamallee is well connected to all parts of the city. Besides bus and train, the locality will be connected via the phase-2 metro network which is expected to be completed by 2026.
Poonamallee is a part of the Golden Quadrilateral and Tambaram-Manali-Chennai bypass projects. Besides, the Outer Ring Road from Vandalur to Nemilichery has further improved Poonamallee’s accessibility. Poonamallee is also close to the Koyambedu Mofussil bus stand.
Mount Poonamallee Road has reputed IT parks and over one million square feet of commercial space in various stages of development. Property prices in Poonamallee are in the range of Rs. 2,999 to Rs. 9,977 per square foot. With the burgeoning development activities taking place in and around Poonamalle, the locality is poised to grow immensely.
If you are looking forward to investing in an apartment near Poonamallee, SOBHA Arbor is an ideal choice. A serene world that embraces green life, these 3&4 BHK eco-friendly luxury apartments will let you experience the joy of organic living.
Best Areas for Investment in Chennai #2 Pallavaram
When it comes to connectivity, Pallavaram is arguably the best locality in Chennai. Situated at the intersection of the Old Mahabalipuram Road (OMR) and Pallavaram-Thoraipakkam Road, the locality is also close to the East Coast Road (ECR), Outer Ring Road (ORR) and Trichy-Chennai Highway. What is more, Pallavaram has both railway and metro stations.
There are multiple tech parks in and around Pallavaram, which include SIDCO Industrial Estate, Chennai Trade Centre, and Olympia Tech Park.
The average property price in Pallavaram is Rs. 5,600 per square foot, which is expected to increase exponentially in the coming years due to Pallavaram’s status as an emerging hub and increased demand for housing in the locality.
An ideal real estate investment option in Pallavaram is SOBHA Winchester. Located on Pallavaram-Thuraipakkam Road, these 1, 2 & 3 BHK luxury apartments are loaded with ultra-modern amenities.
Best Areas for Investment in Chennai #3 Vengaivasal
Easily accessible from all parts of Chennai, Vengaivasal is ideal for real estate investment. The locality has MTC Bus Terminus and Valluvar Nagar Bus Stop in the vicinity. Besides, the Mambakkam-Medavakkam Main Road that passes through the area connects it with the East Coast Road and Old Mahabalipuram Road. In addition to these, the Chennai International Airport and the Tambaram Sanatorium Railway Station are just 13 and 10 kilometres away respectively from Vengaivasal.
Vengaivasal is in close proximity to many employment hubs such as Futura Tech Park (6 km), ASV Suntech Park (9 km), Chennai One IT SEZ (9 km), Madras Export Processing Zone (13 km) as well as Taramani, Grand Southern Trunk Road and Guindy Industrial Estate.
Property prices per square foot in the area range from Rs. 3, 936 to Rs. 13, 285. With its key features such as connectivity and accessibility to employment hubs, the area is likely to witness a boom in the near future.
For those who prefer villa living, an ideal choice to invest in Vengaivasal is SOBHA Gardenia. Located on 6.85 acres of lush greenery, these 2, 3 & 4 BHK villas offer upscale, eco-friendly living.
See More, Visit- Flats for Sale in Chennai
Best Areas for Investment in Chennai #4 Choolaimedu
Prominent as both a residential and commercial centre, Choolaimedu is bordered by Kodambakkam, Vadapalani and Nungambakkam – all popular areas in their own right.
The locality is easily accessible through all modes of transportation. Important roads that pass through Choolaimedu include Poonamallee High Road, Arcot Road, and Dr. Shivaji Ganesan Road. It has Nungambakkam Railway Station at just 1 kilometre away, Arumbakkam Metro Station at 2 km away and the Chennai International Airport at just 15 km away.
Located in the vicinity are Olympia Tech Park (7 km), DLF IT Park (10 km), and Tidel Park as well as International Tech Park – both at a distance of 13 kilometres.
As one of the largest residential and commercial localities in Chennai, property prices in Choolaimedu are relatively high. The current prices per square foot are in the range of Rs. 4,637 and Rs. 23,000. Considering the high demand for the locality, the area will further witness tremendous appreciation in the coming years.
Best Areas for Investment in Chennai #5 Urapakkam
Located on the Grand Southern Trunk Road between Vandalur and Guduvancherry, Urapakkam is one of the most preferred residential destinations in Chennai.
The area is well connected as many important roads such as NH32, Chennai Bypass Expressway, Vandalur-Kelmabakkam Road and the Outer Ring Road pass through it. Urapakkam has a railway station while the Chennai International Airport is located just 18 kilometres away.
When it comes to workplaces, Urapakkam has quite a few business parks in and around it. They include Shriram Gateway, Mahindra World City, Olympia Technology Park, and Madras Export Processing Zone.
Property prices in the area are in the range of Rs. 2,769 to Rs. 6,944 per square foot. Considering the accessibility factor and employment hubs in the vicinity, investing in residential real estate in the locality will yield great returns in the coming years.
Best Areas for Investment in Chennai #6 Korattur
Located along the Chennai-Thiruvallur Highway, Korattur is considered as an ideal residential locality and is part of the Ambattur Industrial Zone.
Its location on one of the important roads in the city makes it highly accessible. Moreover, it has great connectivity via Chennai Bypass, Grand Northern Trunk Road, Inner Ring Road and New Avadi Road. At just 4.8 kilometres away, the Villivakkam Railway Station is the closest in terms of rail connectivity. The airport is less than 20 kilometres away from Korattur.
Being a part of the Ambattur Industrial Zone, it has many small and large-scale industries. They include Hindustan Motors and TVS India. Other than these, there are SIDCO Industrial Estate, One India Bulls Park, and Kochar Technology Park in the area.
The average property price in the area is Rs. 6,820 per square foot and goes up to a whopping Rs. 19, 428 in certain parts of Korattur. Since the area has great locational advantage, residential real estate is likely to appreciate year on year – an important reason to consider it as an ideal real estate investment destination.
Best Areas for Investment in Chennai #7 Velachery
One of the most popular residential destinations in Chennai, Velachery is a well-developed locale. It is in South Chennai and is well connected to the Central Business District and the IT corridor of the Old Mahabalipuram Road. It also has a railway station.
Velachery is close to various IT parks and industrial establishments. Some of these include SP Info City, Ascendas IT Park, ASV Suntech Park and Olympia Technology Park.
Property prices in Velachery are in the range of Rs. 4,000 to Rs. 23,750 per square foot. Being an already established area with a great reputation, Velachery is ideal to make an investment in residential real estate.
Best Areas for Investment in Chennai #8 Old Mahabalipuram Road (OMR)
Famous for being the tech corridor of Chennai and one of the most sought-after residential localities, Old Mahabalipuram Road is seamlessly connected to all parts of the city. Besides the existing road connectivity, the area will soon get a metro station as well as a 4-lane elevated highway.
Being the tech corridor, it is needless to say that the area houses dozens of tech parks. A few of them include TEK Meadows, TECCI Park, Pacifica Tech Park, etc.
The average property price per square foot in the area is Rs. 6,373. However, on the higher side of the price spectrum, it touches Rs. 43, 400 per square foot. Investing in a residential property in Old Mahabalipuram Road will ensure that you get great returns year on year.
Best Areas for Investment in Chennai #9 Medavakkam
One of the rapidly emerging residential localities in South Chennai, Medavakkam has a great advantage in terms of connectivity. The locality is in close proximity to Old Mahabalipuram Road, Perumbakkam Main Road, and Velachery Main Road. The closest railway station is situated at a distance of 10 kilometres in Tambaram, and the international airport is just 13 kilometres away.
The most prominent workplace that is close to Medavakkam – just 5 kilometres away – is Elcot SEZ, which houses tech giants such as Wipro, Cognizant, HCL, Tech Mahindra, etc. In addition to this, the area is easily accessible to other employment hubs such as Guindy, Taramani, and Tambaram.
Property prices in Medavakkam range from Rs. 3,283 to Rs. 17,568 per square foot. Being one of the fastest developing residential localities in Chennai, investing in a home in Medvakkam would be a wise decision as the property prices are sure to increase in the coming years.
Best Areas for Investment in Chennai #10 Porur
Located in the south-western part of Chennai, Porur is a well-developed neighbourhood. The locality has plenty of manufacturing units. It offers great connectivity to other parts of the city via Avadi-Porur Road, Chennai-Bangalore Highway, Chennai Bypass, Outer Ring Road, etc. Guindy Railway Station and the international airport are at 8.2 kilometres and 12.3 kilometres distance respectively.
The nearest hub of employment is the DLF IT Park, which is just 3.5 kilometres away from Porur. In addition to this, Ambattur Industrial Estate, Ambit IT Park, and Prince Info IT Park are easily accessible from Porur.
Property prices per square foot in the area range from Rs. 4,166 to Rs. 16,666. As a well-connected locale with the potential to grow immensely, investing in residential real estate in the locality will yield good returns.
Investing in Chennai – Things to Remember
While investing in real estate in Chennai looks promising, make sure that you do your research before going ahead with the decision. Diversifying your real estate investment portfolio with properties in different locations and price range will help you mitigate risks.
Also consider financing options, keeping in mind the interest rates, inflation, whether you are investing for short-term or long-term, etc. If you are purchasing the property through a real estate agent, make sure to check and verify their authenticity. Most importantly, seek the expertise of an experienced legal professional to verify all the documents related to the property before investing in Chennai.
The 10 localities mentioned above have various advantages such as connectivity, employment opportunities, robust infrastructure and immense future prospects according to various property portals. Chennai, being one of the most important cities in the country with various industries including IT, has tremendous potential as a real estate investment destination. With proper research, you can make informed decisions about investing in residential real estate in Chennai.
FAQs
1. Which is the best place to invest in real estate in Chennai?
Chennai offers great opportunities for residential real estate investment. As a burgeoning city with various industries, demand for housing in Chennai is on the rise. The ten most important destinations for real estate investments in Chennai are Poonamallee, Pallavaram, Vengaivasal, Choolaimedu, Urapakkam, Korattur, Velachery, Old Mahabalipuram Road, Medavakkam, and Porur.
2. Which is the fastest developing area in Chennai?
As a city that is developing rapidly, Chennai has many emerging areas. Both the established and new areas witness a flurry of activities. Two localities which can be considered as the fastest developing are Medavakkam and Korattur.
3. Is it good to invest in real estate in Chennai?
Chennai has tremendous potential as a real estate investment destination. As an industrial hub, Chennai has always offered employment opportunities. Now, with its status as a prominent IT hub, Chennai is offering employment opportunities in large numbers, which is subsequently resulting in ever-increasing demand for housing. Considering these factors, it is easy to see that investing in real estate in Chennai is good.
4. What is the future of real estate in Chennai?
The future of real estate in Chennai is bright for a plethora of reasons. Let’s take a look at some of them. Chennai has always been a hub of employment, owing to the presence of myriad industries. Now being a flourishing IT hub, Chennai attracts people from all over the country. The city is also undergoing a massive transformation in terms of infrastructure and connectivity. All these factors together ensure that the real estate sector in Chennai has a great future.
5. Will real estate prices go up in Chennai?
Going by the current trends, it is easily predictable that real estate prices will go up in Chennai. One of the key reasons for this is the ever-increasing demand for housing in the city. Chennai being one of the most important hubs of IT, employment opportunities are aplenty. This leads to the tremendous influx of people to Chennai from all over the country.
6. Is it worth buying flats in Chennai?
Buying a flat in Chennai is immensely worthy. Of late, the city has been witnessing unprecedented demand for housing. As a result, real estate prices are bound to go up in Chennai. Obviously, if you are buying a flat in Chennai to live in, you can protect yourself against the rising real estate price/rent in future. If you are buying a flat for investment purposes, you can ensure high returns year on year.
