Best areas for rental income properties in Chennai 2025

Do you wish to establish a reliable source of income? It is highly recommended that you invest in the best rental income properties in Chennai. However, finding a good rental property in Chennai is not always easy. According to a recent survey by Anarock Property Consultants, the demand for second houses in India has increased by 50% in the last three years, driven by investment and the desire for a consistent rental income stream. One of the main cities contributing to this expansion is Chennai, which has a thriving real estate industry.

In this blog post, discover the best rental income properties in Chennai and everything you need to know.

A Brief Overview of Chennai's Real Estate Market

Chennai, the dynamic metropolis and capital of Tamil Nadu, offers various homes with various rental rates. Real estate investors can choose from several desirable neighborhoods inside the city, each with its own set of benefits.

Understanding Rental Returns in Chennai

Let us establish a firm groundwork before delving into particulars. You might think of the rental yield as the yearly return on investment for your rental property, which is a percentage. Divide the yearly rental income by the entire investment in the property to get the yield on investment. The best rental income properties in Chennai are affected by the following factors:

• Location: The location of educational institutions, commercial districts, and information technology clusters greatly affects rent demands and prices.
• Property Type: Apartments typically produce larger returns than single-family homes due to reduced maintenance expenses and faster tenant turnover.
• Amenities: Properties offering facilities such as gyms, swimming pools, and power backup often attract premium rates.
• Connectivity: Renters are likelier to be interested in a property near public transportation, metro stations, and major roadways.

1. Sholinganallur

Sholinganallur is the epicentre of Chennai’s IT corridor, attracting thousands of professionals every year. The influx of tech employees ensures strong rental demand for 1, 2, and 3 BHK apartments in Sholinganallur. Its proximity to major IT parks like Global Infocity and SIPCOT makes it one of the city’s most consistent rental markets.

• Average Property Price: ₹8,000 per sq. ft.
• Rental Demand: Very High, driven by continuous IT workforce absorption.

2. Medavakkam

Medavakkam has grown into a top residential catchment connecting OMR, Velachery, and Pallikaranai. With new infrastructure upgrades and metro connectivity in progress, the rental yield from flats in Medavakkam is growing.

• Average Property Price: ₹7,200 per sq. ft.
• Rental Demand: High, especially among young families and IT professionals.

3. Perumbakkam

Perumbakkam’s strategic location near Sholinganallur, OMR, and Medavakkam makes it one of the most preferred rental micro-markets. Large gated communities and affordable rents attract long-term tenants.

• Average Property Price: ₹6,800 per sq. ft.
• Rental Demand: Strong, with steady YoY appreciation in rental searches.

4. Pallikaranai

Pallikaranai is emerging as a rental hotspot thanks to its connectivity to OMR, Velachery, and Guindy. With numerous hospitals, IT parks, and educational institutions nearby, it remains a favourite for end-users and renters.

• Average Property Price: ₹7,800 per sq. ft.
• Rental Demand: Consistent, especially for gated community apartments.

5. Navalur

Navalur has rapidly transformed from a developing suburb into a full-fledged residential hub with malls, theatres, and IT parks nearby. Its affordability paired with strong tenant movement ensures solid rental returns.

• Average Property Price: ₹6,500 per sq. ft.
• Rental Demand: Strong, with increasing interest from tenants working in OMR.

6. Thoraipakkam (Okkiyampet)

Located right on OMR and close to Perungudi, Thoraipakkam attracts high-income tenants from the IT sector. Its excellent connectivity and strong social infrastructure make it ideal for rental investments.

• Average Property Price: ₹9,000 per sq. ft.
• Rental Demand: Strong, especially for premium gated communities.

7. Velachery

Velachery remains a prime rental hotspot due to its commercial activity, proximity to the MRTS line, and connectivity to both GST Road and OMR. Young professionals and families prefer this well-established neighbourhood.

• Average Property Price: ₹11,500 per sq. ft.
• Rental Demand: Very High, with premium rents for well-maintained apartments.

8. Porur

Porur is a booming residential micro-market with access to the IT belt of DLF Porur, manufacturing companies, hospitals, and schools. Affordable rents and strong connectivity make it a preferred choice for renters.

• Average Property Price: ₹8,800 per sq. ft.
• Rental Demand: High, consistently driven by tech workforce and healthcare employees.

9. Thiruvottiyur

As North Chennai continues to develop, Thiruvottiyur has become a sought-after rental destination due to metro expansion, industrial activity, and affordable housing options.

• Average Property Price: ₹6,000 per sq. ft.
• Rental Demand: Steady, especially for budget apartments.

10. Ambattur

Ambattur, with its industrial estate and growing IT presence (like Ambit IT Park), attracts a high number of tenants seeking both affordability and connectivity. Its residential pockets have flourished over the past decade.

• Average Property Price: ₹7,500 per sq. ft.
• Rental Demand: High, with consistent occupancy rates.

Conclusion

If you want to invest in best rental income properties in Chennai, these areas offer excellent prospects. The city provides many real estate opportunities, from established neighborhoods like Adyar and Nungambakkam to newer, more exciting places like Porur and West Mambalam. Before making any investment decisions, conducting thorough research and grasping market dynamics is vital.