Where Can You Buy and Rent Property in Chennai?

Most people who invest in houses and apartments do so keeping in mind their budget. The joy of finding a home close to your work place and within your budget is inexplicable. If you are looking for an area in Chennai which is cheap enough for your budget and near your office, then do go through this write written.  A lot of these residential hubs are located near IT sectors and companies.

Within Rs 20 lakhs to Rs 50 lakhs

Medavakkam, Ambattur and Urapakkam are some of the areas to be considered in this budget. The proximity to the OMR in South Chennai is a big advantage for Urapakkam and hence you should consider it. The OMR has a number of IT companies located on it. Also, because it is a centre of employment, immigrant IT professionals also eye for flats and house for rent in Chennai here which has led to a sizeable demand.

Those eyeing property in Medavakkam for purchase would be glad to know that it is one of the 10 preferred areas of Chennai among tenants and buyers. Its proximity to the IT hubs, broad paved roads, improved connectivity via the Velachery-Tambaram Road and Pallavaram-Thorrapakkam Road makes it a lucrative area for home buyers. Also, the proposed monorail has made house buyers enthusiastic about this area as it would offer speedy and easy connectivity.

Medavakkam is also located close to suburbs which are developing such as Ottiyambakkam, Ponmar and Sithalapakkam. Shopping areas and transport and work places are located conveniently from this point. Ambattur is another area where people are choosing to stay for its affordability. However, a drawback of the area would be the bad condition of the roads. Keen interest has been taken by developers in the area and they have come up with newer projects. Land availability has also encouraged a lot of developers to start projects here.

Those with modest budgets can consider these areas.

Under Rs 20 lakhs 

 

If you want to buy property for the sake of investments, then you should start small. Areas such as Guduvancheri, Sriperumbudur, Oragadam and Thiruvallur should be considered for this purpose. Most buyers prefer to buy plots here. Located in the south western region, Guduvancheri is preferred because of its closeness to IT hubs, proximity to the OMR or Old Mahabalipuram Road and affordability. It is one of the biggest residential areas between Chengalpet and Tambaram. It attracts a lot of students because of its centres of higher education. The closeness to the National Highway 45 or NH 45, also known as the Great Southern Trunk Road also makes it a lucrative area to live in. It is one of the busiest roads in the south. The stretch is emerging economically primarily because of its closeness to a big SEZ corridor and connectivity through air, road and railways.

Even though plots are mostly demanded here, their supply falls short. Therefore, those who cannot afford to buy plots are opting for flats here. Already 13 projects for residential complexes have been started here. A lot of these projects are slated to be completed by 2015 end and shall be ready for possession.

Over the past 5 years, Guduvancheri has grown rapidly and should continue to grow at similar speeds because land prices are quite attractive for the middle income group.

Oragadam and Sriperumbudur: For the development scope offered by these localities, they have gained vastly as investment destinations. A lot of industries are willing to set up their base here. Since more numbers of industries are coming up here, buyers can expect an increase in jobs here. The emphasis of the 2014 budget has been on the upgrade of the Bangalore-Chennai Industrial Corridor which indicates a Peripheral Ring Road’s construction in Chennai may be implemented. The infrastructural project shall be attempting to associate important industrial areas of Thiruvallur, Sriperumbudur, SingaperumalKoil, Periyapalayam and Thamaraipakkam. NRI focus has been received by both Oragadam and Sriperumbudur as well.

These two areas also have FMCG, electronics, software and manufacturing companies which employ a lot of people. Another advantage of this area is the green field airport which is coming up. An aspect which requires attention still is the commercial side of Oragadam and Sriperumbudur. However, the social infrastructure required in the area is developing gradually. Colleges, schools, road and rail connectivity and hospitals are being constructed here. The price variation in the property shall come up based on whether there is plotted development that has been equipped with sewerage and drainage monitoring, close by parks, electricity supply and roads that have been laid out well.

If buying property in Chennai is not possible for you, you could always rent it! Properties worth Rs 2 to 3 crores may be rented for Rs 35,000 to Rs 60,000 in a month in Besant Nagar. The prices of property in this premium area start from Rs 90 lakhs and may go up to Rs 10 crores even. Those who want to live in a premium locality can opt to rent a flat here in case they can’t afford to buy it.

Among house for rent in Chennai, 3BHK flats in Besant Nagar which have a built up area of 1400 to 2300 sq. ft. may be rened for Rs 30,000 to Rs 60,000. Besant Nagar mostly has 3BHK configurations in supply.

Only HNI and upper middle class people can afford to buy residential properties in Besant Nagar because of the high capital values. However, renting is still an option for most upper-middle class and middle class people here. If you are looking for a smaller configuration, you can rent a 2BHK for Rs 25,000 to Rs 30,000 in a month here. The sizes of these apartments are between 750 sq. ft. and 1100 sq. ft. Capital values of such apartments are between Rs 90 lakhs to Rs 1.5 crores.

Aside from apartments, stand alone house for rent in Chennai Besant Nagar is also available. Mostly top ranking government officials own these properties and they are willing to rent it out to families. Most of the houses are of the size 600 to 2500 sq. ft. and their rent is between Rs 15,000 to Rs 65000 in a month. The capital value of houses in this area is around Rs 1.5 crores to Rs 12 crores and they cover an area of 700 to 4500 sq. ft.

Medavakkam and South Chennai Are Preferred Locations for Residential Investment

Medavakkam is an area located towards the south west direction of Chennai at a distance of 20kms. The area has grown significantly in terms of infrastructure and capital values because of the area’s strategic geographical situation. Home buyers are quite fond of the area and there is much scope for development which has compelled developers to come up with projects for the area. 
 

Location of Medavakkam 

Localities which border Medavakkam are Velachery towards the north, OMR or Old Mahabalipuram Road towards the south and the Grand Southern Trunk Road or GST towards the south west. The proximity to such prominent locations has ensured that IT employees who choose houses in Medavakkam are not too far from their offices. Medavakkam is seeing a rise in house for rent in Chennai along with purchase because of its IT corridor. 

 Aside from the connectivity, the broad paved roads are an added benefit for house buyers. Social infrastructure is quite well developed here as it has many colleges, schools, hospitals and religious destinations as well. The Metropolitan Transport Corporation or MTC is the main public transport here and it connects the area to all landmarks around and in Medavakkam. One of the facts to note is that the Velachery- Tambaram Road and the Pallavaram-Thuraipakkam Road have made routes simpler around Medavakkam. Via this route, the international airport is located only 12kms from Medavakkam and the Chromepet Railway Station only 9kms. The monorail under construction is another prospect to which house hunters are looking forward. The physical and social infrastructure of Medavakkam has secured its position as a residential locality. The OMR was earlier the most sought after destination for the connectivity offered by it. However, the OMR is becoming saturated which means that Medavakkam has gained the top spot.

Price of Property

The capital values of Medavakkam have gone by up 20 percent within a span of 2 years. Currently, the per square feet rate is around Rs 4500 to Rs 5000 per square feet. Most of the units are 2BHK ones and available within the price bracket of Rs 30 lakhs to Rs 60 lakhs. Their size ranges between 850 sq. ft. and 1200 sq. ft. Most trends watchers opine that residential plots are coming up as investment options. Prices of such plots begin from Rs 7 lakhs and they can be priced at Rs 2 crores even. The price of the plot is dependent on the location and the fact whether it overlooks the main road or is front facing.

On the whole, properties in South Chennai have had appreciation within the range of 10 percent to 20 percent in the past 18 months. Property prices have increased significantly and the realty market may grow even quicker because of the presence of commercial properties and schools and proximity to areas such as OMR, Velachery, Tambaram and Pallavaram which are more expensive. Therefore, if you want a well-connected location which is quite affordable now and has good possibility of appreciation, you could buy property in Medavakkam.

One of the intriguing facts about Chennai’s real estate market is that property buyers are heading mostly towards South Chennai. Of the 10 most preferred locations in Chennai, 8 belong to the south. What could be the reason behind this phenomenon?

Organization of South Chennai 

Residential units, closeness to commercial spaces, traffic, healthcare and avenues for entertainment such as clubhouses and beaches are more organized in South Chennai. This is one of the reasons why early buyers and investors got attracted to South Chennai. The area continues to draw a lot of expats and NRIs also. Families prefer staying here because of closeness to schools and good social fabric. This has also led to a growth in interest among developers. North Chennai is progressing slowly towards infrastructure development such as construction of ring roads and smart city development. Kolathur and Ponneri are two of the preferred destinations in North Chennai. Despite ongoing projects, development in Chennai is quite slow. Compared to that, newer projects are being constructed in Chennai which offer appreciation prospects in the long run.

Why is Northern Chennai lagging behind?

In terms of development, North Chennai took off much later than the south. This is one of the reasons why social infrastructure in North Chennai is not well developed. Low occupancy led to slower development. North Chennai was mostly an industrial area that had lots of plans and warehouses. Aside from areas such as Ayanavarm, Perambur and Kolathur, most of the other localities have failed to attract interest of developers. The property market in this area is moving slowly and hence even if the cost of land is less, investors are hesitant about putting out in the local market.

Certain areas such as Ponneri are coming up as residential locations but only in the long term would it be beneficial. Currently, issues of land acquisition have to be taken care of. The government also needs to focus on better infrastructure and transport of North Chennai. Those residents of OMR who have house for rent in Chennai prefer the East Coast Road for buying properties. Even though the OMR is located close to work sites, the ECR provides better infrastructure.

Residents of OMR have to deal with water crisis as no groundwater is there and the municipal corporation cannot provide it. Residents have to buy water for everyday use. This is one of the reasons why the ECR is better for residents and they are willing to sacrifice connectivity for convenience. 

Despite having excellent connectivity, traffic in North Chennai is a problem. Roads require a facelift as 30 ft. roads are treated as highways which makes commuting tough. Also, heavy vehicles on roads cause difficulty in driving.

In terms of property prices, North Chennai is both an advantage and a disadvantage. Admittedly the price of property is low but buyers would have to compromise on the infrastructure available. Most market watchers however believe that all is not lost in North Chennai. With proper infrastructure and environment monitoring, North Chennai too could turn out to be investor friendly. When South Chennai gets saturated, North Chennai shall mature, which has been the case in many metro areas which have expanded.