Rental and Purchase Demand Increases in Chennai’s Premium Locales

Are you unwilling to compromise on the lifestyle you are leading for a Chennai house? If you like amenities, strategic locations and lots of amenities then you should consider living in Chennai’s premium locations such as T Nagar, Anna Nagar, Adyar, Nungambakkam and Kilpauk. You can buy a flat or house in this area if your budget is between Rs 1 and 6 crores!

Not only do these areas offer good amenities and lifestyles but also high rental returns. For instance, Adyar has shown a constant increase in rent values in the past 6 months. In the first quarter of 2014, the rise in rent was around 13 percent whereas in the second quarter it rose by 7 percent. Most people wanting house for rent in Chennai have enquired about properties in Adyar but in the past few months, the enquiries have increased manifold. The conversion rate too has increased which has further strengthened rental values.



The increase in rental values certainly is good news for investors of the area who want healthy returns on rent. Despite an increase in rent, tenants are not shying away from the area. Adyar happens to be among top 10 localities preferred for rent in Chennai. The constant demand for rented accommodation in this locality is mainly from IT professionals and locals. Most of them want to live in premium areas of Chennai which is why they enquire about property in Adyar. The price of property in Adyar is quite high which may make it out of reach for most middle class and upper middle couples but renting property here is certainly possible. The average capital value in Adyar is around Rs 12000 to Rs 15000 for square feet which make it one of the most expensive areas of the city. However, the rent in this area is around Rs 25,000 to Rs 30,000 in a month.

Currently, multi-storeyed apartments, builder floor units and some house for rent in Chennai Adyar are available here. The most supplied unit in this area is the 3BHK flat which may be leased for Rs 25,000 to Rs 75,000 in a month while for a 2BHK flat; the rent is around Rs 15,000 to Rs 40,000 in a month. Adyar’s closeness to IT areas and its location by the OMR or Old Mahabalipuram Road has made it a favourable place for renting apartments in Chennai. Some of the IT parks which are located close-by are the Rajiv Gandhi IT Park, Ramanujan IT City and TIDEL Park.Adyar enjoys public transport services which makes connectivity to other areas of the city easy. Businessmen would find living in T Nagar convenient because of trade areas located nearby.

Because of civic and social infrastructure along with closeness to employment hubs, many buyers conscious of their lifestyle prefer staying in these areas. If your budget is not very high to be able to afford living in these areas, you can consider living in house for rent in Chennai in these areas. These areas are much in demand by rent-seekers because of their location and amenities. There are a lot of HNI individuals whose annual earnings are more than Rs 30 lakhs who buy properties here while those who want to stay here but cannot afford to purchase properties prefer to rent houses.

Tenants are uninhibited to shell out Rs 25,000 to Rs 50,000 in a month for enjoying the easy access to various facilities. Renting an apartment here reflects tenant aspirations apart from the fact that they want to live near the city. Anna Nagar and Adyar have been quite popular among tenant in the first quarter of 2014. Investors have capitalised on these and their rental yields have been quite encouraging. An investor stands to earn Rs 60,000 in a month from a 4BHK house in Kilpauk while in Nungambakkam, s/he can earn around Rs 70,000 in a month from 3BHK multi storeyed flats.

Most of the 3BHK apartments in Anna Nagar and Adyar can be rented for Rs 40,000 to Rs 50,000 in a month. In T-Nagar, the rent for property may be as high as Rs 1.5 lakhs in a month. Most businessmen in other areas of Chennai come to T Nagar because of its closeness to business locations. Corporate lease is quite common in most locations here. These popular places in Chennai have a lot of buyers flocking to them. A lot of people recycle their properties in peripheral Chennai, Madurai or Coimbatore to opt for an expensive residence in a promising and premium location of Chennai when the question of basic physical and social infrastructure is concerned.

Re-Development in Chennai

Even though a lot of these locations are becoming saturated, they are being redeveloped and the concept has caught on quite quickly in various areas. A lot of these posh locations are being redeveloped into 3, 4 and 2BHK flats for sale. Because the numbers of investors in this area are high, tenants too shall benefit from occupying flats which have been made over.

For developers, the benefit of obtaining better buildable spaces without investing any money is quite irresistible. Owners too benefit as their old flats are given a facelift. Some of the redevelopment stances include improved architecture and better interiors, covered car parking facilities, flooring and an entirely modern outlook. Redevelopment also considers modern governmental norms such as the FSI or Floor Space Index where older buildings are bulldozed to create new ones keeping in line with government regulations.

Areas such as Besant Nagar, KK Nagar, Indira Nagar and Shastri Nagar in Chennai are opting for re-development. Some of these areas were developed by the TNHB or Tamil Nadu Housing Board almost 40 years back and required such stances of redevelopment. Even those apartments which are held privately in Nungambakkam have undergone redevelopment. Because premium localities are reaching a point of saturation, almost half of the existing properties are undergoing make overs.

If you want to live in a posh locality in Chennai as a buyer or tenant, then you should definitely consider living in one of the localities mentioned above.