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.

Top 10 best rental income properties in Chennai

1. Tambaram

Tambaram is a highly desirable neighborhood and is considered one of the best best rental income properties in Chennai’s southern region, close to new Kilambakkam bus terminus. Its proximity to main roadways and local train terminals makes it an ideal location for commuters. The rental searches for flats in Tambaram has seen surge in recent years due to rapid growth.

• Average Property Price: ₹7,500/- per sq. ft.
• Rental Demand: High, with an 8.3% increase in property prices over the last year.

2. West Mambalam

Commuters will appreciate the highly desirable West Mambalam neighborhood's convenient access to the metro and local bus routes. Its proximity to Tidel Park and other information technology centers makes it an attractive place for young professionals to settle down. The neighborhood has a respectable rental yield, particularly for apartments and single-family homes.

• Average Property Price: ₹11,000 per sq. ft.
• Rental Demand: Strong, driven by a young and dynamic workforce.

3. Anna Nagar

Located northwest of Chennai, Anna Nagar is well-known for its wide avenues, parks, and convenient transportation options. The area's abundance of metro and local train stations guarantees easy access to the rest of the city, making it one of the best rental income properties in Chennai.

• Average Property Price: ₹15,579 per sq. ft.
• Rental Demand: Steady, with various property types available, including well-constructed bungalows and apartment buildings.

4. Valasaravakkam

With its expanding population and advanced infrastructure, Valasaravakkam is quickly becoming a popular residential area. Tenants flock to this neighborhood because of the abundance of shopping centers, educational institutions, and IT parks. Valasaravakkam has many rental alternatives, from contemporary apartments to detached houses, to suit all budgets.Since Valasaravakkam is close to Saligramam and DLF porur the demand for flats in Valasaravakkam is driven by IT professionals and from film industry.

• Average Property Price: ₹8,500 per sq. ft.
• Rental Demand: Consistent, with high apartment and house occupancy rates.

5. Besant Nagar

Besant Nagar is a posh neighborhood in southern Chennai with beachfront homes and affluent residents. The neighborhood has several posh restaurants, cafes, and shops, and the region is home to many wealthy people. It is definitely one of the best rental income properties in Chennai.

• Average Property Price: ₹20,223 per sq. ft.
• Rental Demand: Strong, with an 18.69% increase in property prices over the last year.

6. Kotturpuram

A popular residential area with convenient transportation options, Kotturpuram is situated on the southern bank of the Adyar River. Professionals and academics love the location because it is close to Guindy and IIT Chennai.

• Average Property Price: ₹14,435 per sq. ft.
• Rental Demand: Moderate, with various property types available, including flats and houses.

7. Nungambakkam

Nungambakkam is a popular choice for wealthy locals and expats because it is one of Chennai's most exclusive neighborhoods. Concierges, five-star hotels, and posh malls make this neighborhood a hotspot for affluent renters. Due to its great connections, Nungambakkam is one of the best rental income properties in Chennai.

• Average Property Price: ₹20,300 per sq. ft.
• Rental Demand: High, with premium rates for well-maintained properties.

8. Thiruvanmiyur

Thiruvanmiyur is a coastal community that offers the ideal combination of modern conveniences and natural beauty. Due to its peaceful environment and close proximity to IT corridors, it is a popular choice for families and working professionals.

• Average Property Price: ₹15,500 per sq. ft.
• Rental Demand: Strong, especially for properties close to the beach.

9. T. Nagar

Thyagaraya Nagar, more commonly known as T. Nagar, is a thriving neighborhood in Chennai known for its many businesses and residents. A significant working population is seeking convenient, affordable living spaces flocks to T. Nagar for its commercial lanes, markets, and dining alternatives. Investors have a lot of leeway in this area because of the wide range of rental alternatives, from affordable apartments to more conventional buildings.

• Average Property Price: ₹14,000 per sq. ft.
• Rental Demand: High, with a steady influx of tenants due to the area's commercial activity and central location.

10. Vadapalani

Aside from being a famous destination for shopping and entertainment, Vadapalani is also home to the biggest bus terminus in the city, making it another prosperous residential and business district in Chennai. The neighborhood's wide variety of housing possibilities, from affordable apartments to luxury houses, is a well-known feature. Investors may rest assured that Vadapalani will generate substantial rental yields thanks to its prime location and excellent public transportation options.

• Average Property Price: ₹13,500 per sq. ft.
• Rental Demand: Consistent, broadly appealing to professionals and families.

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 Valasaravakkam and West Mambalam. Before making any investment decisions, conducting thorough research and grasping market dynamics is vital.