The Best Localities for Highest Rental Returns

Home blog 5 Places To Look For A Highest Rental Returns In Chennai

Chennai is one of the prominent market places for stable real estate growth. Compared to other southern urban cities, Chennai has recorded a high rental return. As a scope of investment, homes at Chennai are attracting new buyers and investors.

It offers a wide range of options for people seeking to earn high rentals. Chennai's real estate value is stably growing at a rate of 7-10% a year, which guarantees better returns for people investing right now.

If you are looking to invest in property but aren’t planning to move in yourself, renting is the wisest decision to enjoy good returns in the future.

Let's look into the top localities that offer high rental returns in Chennai.

Sholinganallur
Sholinganallur is in close proximity to the commercial establishment and IT centers. Increased IT jobs have boosted the demand for homes in and around Sholinganallur. The area has witnessed a significant growth of value in the shortest period.
The average rent for a 2BHK apartment is 14147 INR per month, and the sale value is estimated to increase at the rate of 2.3% per year. With highly developed infrastructure, Shollinganallur connects to East Coast Road (ECR) and Velachery main road.

East Coast Road (ECR)
Once known as Chennai's premier entertainment hub, ECR has evolved into a high-value real estate location as well. It is a residential area with excellent infrastructure in proximity to OMR (Old Mahabalipuram Road) and various international IT companies.
The demand for rental homes at ECR is always high. The sale value appreciation is estimated to increase at the rate of 4% every year. Depending on the location and amenities, the average rent of a 900 sq/ft 2BHK home is about 14,000 to 16,000 INR per month.

Pallikaranai
Pallikaranai is one of the attractive real estate hotspots the city has to offer, to prompt investors. It is well-connected to Medavakkam, Sholinganallur(via GST road), and Velachery owing to constant price appreciation and high rental income. It is also close to the Chennai International Airport and is just at a distance of 14 kilometers.
The sale value appreciation is estimated to increase at the rate of 2.70% every year. Depending on the location and amenities, the average rent of a 1400-1600 sq/ft 3BHK home is about 15,000 to 25,000 INR per month while a 2BHK apartment of 800-1000 Sq ft can fetch rental of 10,000-15,000 INR.

Navalur
Navalur is experiencing a stable growth suburb located between Sholinganallur and Kelambakkam, proximity to IT companies, extraordinary road infrastructure, and entertainment avenue has made Navalur a bustling real estate hotspot that doubles up the rental return. It is considered as the next Velachery, and the most demanded location with greater rental appreciation in Chennai. Real estate investment at Navalur is estimated as 1 Trillion market value within 2 years, and rent appreciation is at an average of 10% every year.
The emerging new trend, co-living has become the best option to cater to the needs of IT professionals and other tenants for short periodic stays. DRA's TRULIV is Chennai's first fully furnished apartments dedicated to co-living space. We are offering refined accommodations, amenities for constantly moving tenants with 5 years of free maintenance where you can extend the contract with the tenant of your choice.

Chrompet
Chrompet is a residential area, gained popularity due to its proximity to prime areas like Tambaram and Pallavaram. Located within 4 kilometers south of Chennai International Airport. It is well-connected with frequent public transportation and homes various commercial, residential, medical, educational entities that continue to attract investors.
The average rent of 2BHK apartments is about 10,000 to 15,000 INR per month, while 3BHK apartments can fetch rental of 12,000-18,000 INR. The sale value appreciation is estimated to increase by 3% every year.

Medavakkam
Medavakkam is an upcoming prime residential area located to the west of Solinganallur and has hassle-free accessibility via the OMR road. It is home to a Nanmangalam reserve forest. The quiet ambiance and sprawling trees in the residential areas have made Medakkam a popular destination among tenants.
The IT parks in the nearby localities are influencing a high demand for rental homes in Medavakkam. The sale value appreciation is estimated to increase by 7% every year. For 2BHK apartments, once fetch the rental in the range of 8,000-12,000 while a 3BHK apartment will be around 12,000-20,000 pf rent per month.

Guduvancheri
Guduvancheri is another fast growing suburb of Chennai. It is well-connected to all essential services and world-class amenities required for modern living. Guduvanchery has high potential for land appreciation, with an expansive land bank perfect for those who are looking to invest in independent homes. Due to its ideal location and highly developed infrastructure, that commands enviable rental returns.
Depending on the location and amenities, the average rent for a 1400-1600 sq/ft 3BHK home is about 16,000 to 25,000 INR per month while a 2BHK apartment of 800-1000 Sq ft can fetch rentals of 10,000-15,000 INR

Benefits of High Rental Investments

Chennai has had exponential growth in the recent decade. As the scope of the city is increasing, people from other places are moving into a city that guarantees high rental returns for investors. The majority of the areas are yielding high returns in Chennai, and commercial expansions are inflow. Many locations across Tamilnadu is attracting rental investments regardless of the pandemic conditions.
The tenants are expecting fully furnished homes, amenities for a comfortable living. Rental housing allows the migrants to opt for a higher standard of living but also beneficial for investors in the long term. No doubt, Chennai has become an expensive city to buy a property. But, owning a property can earn a high rental income that adds more value to your investment.