Top 10 Areas for Lucrative Real Estate Investment in Chennai (2024)

Chennai, the bustling capital of Tamil Nadu, offers a thriving real estate market brimming with potential for investors. With a booming IT industry, excellent infrastructure development, and a diverse range of residential options, Chennai caters to various budgets and lifestyles. But where do you start your investment journey?

This blog unveils the top 10 areas in Chennai poised for lucrative real estate investment in 2024, equipped with valuable statistics to guide your decision-making.

Soaring ROI and Secure Living: Top Investment Hubs

1. Velachery:

Leading the pack is Velachery, boasting an impressive 16.4% appreciation in property value over the past year. This well-developed area offers excellent connectivity to major IT corridors and the Chennai airport, making it ideal for working professionals and families. Expect average prices per square foot to be around ₹8,350.

Velachery is the most preferred locality among the IT professionals working in OMR. Velachery is a vibrant neighbourhood teeming with malls, lifestyle stores, dining,entertainment, food streets and other amenities. It is just 7km away from Thiruvanmiyur beach.

Gated community flats in Velachery with amenities fetches higher rental yields than builder floor apartments. You can start your investment with just 60 lacs in 2bhk resale flats.

The only disadvantage of this locality is , it gets flooded in every monsoon.

2. Medavakkam:

Following closely behind is Medavakkam, a strategically located area between the OMR and GST corridors, witnessing a 5.6% appreciation. With its strong social infrastructure and proximity to employment hubs, Medavakkam attracts a steady influx of residents. Here, the average price per square foot is approximately ₹6,000.

For those who cannot afford the rent in Velachery prefers apartments in Medavakkam , since Medavakkam also shares similar characteristics like Velachery. Medavakkam located closer to Tambaram railway station attracts employees from GST and OMR corridor. Here you can start your 2bhk investment with just 70 lacs onwards in new gated community apartments.

3. Tambaram:

With an average price of ₹5,500 per square foot and a 10.7% appreciation rate, Tambaram presents a compelling investment opportunity. This well-connected area offers easy access to various parts of the city and boasts excellent educational institutions.

We suggest you to invest in Plots in Tambaram for higher capital appreciation in 10 years rather than in apartments for rental yield. Tambaram is a vast area with notable infrastructure developments. You can find gated community plots in Tambaram east locations like Agaramthen, Madambakkam and Ponmar and in the West you can invest in Old Perungalathur, Manimangalam and along with Bangalore highways.

4. Porur:

Strategically located near the Chennai airport and major IT parks, Porur has witnessed a 5.2% appreciation in property value. The average price per square foot in this area is around ₹6,700, making it a good choice for investors seeking a balance between affordability and growth potential.

Porur is the most preferred location for real estate investment in Chennai west zone.

5. Pallavaram:

Known for its well-established residential neighborhoods, Pallavaram has seen a steady 5% appreciation. With an average price of ₹6,050 per square foot, this area offers a good mix of residential options and well-developed infrastructure.

Emerging Markets with High Growth Potential

While the established areas offer stability, Chennai also presents exciting opportunities in emerging markets:

6. OMR (Old Mahabalipuram Road):

Though the overall appreciation for OMR is at 2.2%, specific locations within this IT corridor hold immense potential due to ongoing infrastructure projects and the influx of IT companies. The average price per square foot here is around ₹5,500.

OMR which starts at Madhya Kailash and extends up to Thiruporur is still a promising corridor for real estate investment. The search for rental apartments in OMR is huge among the working class population , the average rental yield of 2bhk is around 17k and it goes up to 25k based on the age of the property and furnishing type. The demand for co-living in this locality is also high due to the influx of a larger population from other metro cities.

Investing in gated community plots has also returned promising returns in the last decades. You can start with plot investment with 25 lacs onwards in OMR.

7. Perumbakkam:

Witnessing a promising 14.8% appreciation rate, Perumbakkam is a fast-developing area with well-planned infrastructure and proximity to educational institutions. The average price per square foot of Perumbakkam apartments is around ₹5,500. You can start the 2bhk with just 50 lacs onwards and the average rental yield is around 15,000/- in this locality. Since Perumbakkam is between Medavakkam and Sholinganallur this is also one of the the promising locality Chennai south for real estate investment.

Luxury Living and Established Prestige:

8.Adyar: Renowned for its upscale residential neighbourhoods and proximity to the beach, Adyar offers a luxurious living experience. With a staggering 21% appreciation rate, this area commands an average price per square foot of ₹10,000.

9. Anna Nagar: Another prestigious area in Chennai, Anna Nagar boasts a 17.9% appreciation rate and offers a premium lifestyle with well-developed social infrastructure. The average price per square foot here is around ₹7,000.

10. Sholinganallur:

Like other localities in OMR corridor Sholinganallur is also driven by residential rental demand. Sholinganallur is known for bigger gated communities with amenities. You can find many sea view apartments in this locality since it is closer by the sea. The apartment per sqft price ranges between 5,100 and 8,100 per sqft and the average rental yield of 2bhk in this locality is between 17,000 and 25,000 per month.

Chennai's real estate market presents a multitude of options for investors. By considering your budget, investment goals, and the information provided here, you can make an informed decision and unlock the potential of Chennai's flourishing real estate landscape.