Highest Rental Yield In Chennai In Sholinganallur

Sholinganallur is already on the property radar of house hunters as evident from the rise in rental and capital values of the area. The rental values increased by almost 15 percent whereas the capital values increased by 9 to 10 percent roughly. In the first quarter of 2013, per square feet price stood at Rs 4000 roughly which jumped to Rs 4600 roughly in the first quarter of 2014.

What are the main determinants of Sholinganallur’s popularity in the realty market?

Availability of jobs has uplifted the area’s real estate market through establishment of a preferred investment and rental choice. The IT corridors are near it which has led to an increase in the values of property in the capital market. Not only that, if you want to earn on lease house in Chennai Sholinganallur, then you would be in the top locality of Chennai which has highest rental yields.

If you invest INR 34 lakhs for a 2BHK apartment of 1000 square carpet area, you would manage to make Rs 10,000 to Rs 20,000 through monthly rent, based on the actual location of your apartment. Brokers reckon that for a fully furnished apartment with 1900 square feet carpet area which is located ideally, an amount as hefty as Rs 75,000 can be charged for it. If such a house has to be bought, then an investment of Rs 60 lakhs to Rs 90 lakhs needs to be pumped in. If you furnish it well enough, then you can rely on good returns in the rental market.

Price

A 2BHK apartment which is spread over 950 square feet is priced at roughly Rs 32 lakhs. The price of an apartment measuring 1600 square feet can be as high as Rs 80 lakhs. If you want to choose a 3BHK apartment, then you will be charged anything between Rs 35 lakhs to Rs 1.6 crores. A variety of residential property is up for sale here- plots, villas and residential houses. Paying guest accommodations, multi storey flats, studio apartments, villas are available for rent in Shollinganallur along with house for lease in Chennai. An apartment in a multi-storeyed complex would cost you anything between Rs 5000 to Rs 50,000 in a month as rent.

Most of the accommodations can be rented within Rs 14,000 to Rs 26,000 in a month. These are mostly semi furnished 3BHK apartments. Also 2BHK apartments ranging between 600 square feet and 1200 square feet are also available. For 3BHK units, you would have to settle for 850 square feet to 2100 square feet.

Shollinganallur is a promising neighbourhood for both prospective tenants and investors. It is the best place for rapid appreciation of capital value along with rental demand.

Why choose Sholinganallur?

Connected via the East Coast Road and OMR to other areas in the city, the area’s geographical location is quite attractive. Not only for residential properties, Sholinganallur is very attractive to corporates as well. In terms of physical and social infrastructure, the area has a lot of reputed colleges and schools, eateries and malls. The recreational spot, ECR Beach is also very close to Sholinganallur. Location wise, Sholinganallur has immense potential for appreciation. Closeness to the employment catchment area, Sholinganallur has attracted a number of tenants and buyers. Even single professionals turn up to buy or rent houses in this area for settling down. Ways to improve the area include flyovers for decongesting traffic during peak hours. Parking and traffic is a main concern point of the area. Auto rickshaws and local buses are the most chosen medium for commutation. The closest railway station to Sholinganallur is Velachery which is roughly 12 kilometres from here.

The area is a preferred rental location as evident from the annual yield of Rs 2.4 lakhs almost. Real estate investment made around and in IT destinations has always produced high rental returns and capital returns. The area has seen ever growing demand for rental accommodations and has been consistently features in the top 5 preferred localities in Chennai by various lists. Located along the Old Mahabalipuram Road, the area is a catchment area for IT professionals who work in the companies based out of the IT industry nearby.

The annual yield received by Sholinganallur is 4.35 percent in the January to March quarter of 2014 for rental properties. This has helped the area secure the top spot among areas preferred for rental purposes. In terms of rental yield, for 1000 square feet flat that you buy for Rs 50 lakhs in the area, you can earn almost Rs 2.4 lakhs in rental income. Therefore, you would be able to cover the cost of buying the apartment in no time. For the first time, Sholinganallur has been included in the top rental yielders list. There has been a consistent and regular rise in values of rent in the area. For example, the average rental rates in the area were between Rs 12,000 to Rs 13,000 in the second quarter of 2013. It went up to Rs 15,000 almost by the end of the third quarter of 2013. For the same property, you would have to pay Rs 17,000 in a month in today’s times. The area has to offer 3BHK flats of 1200-1800 square feet which will fetch a rental income of Rs 15,000 to Rs 24,000 in a month roughly. Flats in the 2BHK design can also be found here in the range of 800 to 1100 square feet. The rental value of these properties is between Rs 10,000 and Rs 16,000.

The closeness to IT hubs such as Gateway International, Siruseri IT Park and PSSB Millennium is what has triggered the demand of rental properties from IT employees. Moreover, the area is well connected to other parts of the city through important roads like Velachery Main Road, East Coast Road and Link Road. Via Old Mahabalipuram Road, the airport is only 20kms away from Sholinganallur whereas the central rail station is only 25 kms away roughly. You can find house for lease in Chennai here as well.