Hyderabad and Chennai are regarded as the most affordable cities in the southern part of India and are also considered as the top hotspots for laborers. As the majority of the IT companies have established their offices here in Hyderabad and Chennai, these cities have become today the most popular destinations for tech professionals.
If you are an IT professional looking to shift to Hyderabad or Chennai but are confused, here’s a blog that can help you to determine the cost of living, rental rates, property rates, etc. in both the cities. This blog will provide you with comparative analysis between both the cities Chennai vs Hyderabad that will help you judge the best before you arrive in Hyderabad or Chennai.
Hyderabad is situated in the southern part of India in Telangana and is currently the capital city of Telangana. The weather here although is hot in summer but is cooler and comfortable in winter.
Hyderabad has a population growth rate of 2.48% and around 11 million people reside in this city. Talking about the popular tourism attractions here, Charminar, Hussain Sagar Lake and Ramoji Film City.
Hyderabad is widely recognized as a prominent hub for IT technology industries, pharmaceutical enterprises, and biotechnology companies. Notable landmarks here include Golconda Fort and HITEC City, which serve as significant centers for information technology and business parks.
The real estate sector in Hyderabad is experiencing substantial growth, establishing itself as a prime location for information technology firms and multinational corporations to establish their operations. For those looking to live or invest in the city, there are appealing opportunities available in both residential and commercial real estate.
Cost of Living: Hyderabad is more affordable compared to many other cities in India. The expenses related to transportation, food, and housing are reasonable.
Infrastructure Development: Hyderabad boasts excellent connectivity, featuring an outer ring road, a metro system, and an international airport. Ongoing projects such as the Regional Ring Road and the metro line expansion are set to enhance accessibility for residents.
Hyderabad’s IT and pharmaceutical sectors present numerous opportunities for job seekers. Major companies such as Amazon, Google, and Microsoft attract talent to the city.
Promising Sectors: Areas such as Gachibowli, Genome Valley, and HITEC City are highly sought after.
Neighborhoods: Many individuals prefer to live in Gachibowli, HITEC City, and Kondapur due to their proximity to modern amenities, IT hubs, and educational institutions.
Chennai is situated on the eastern coast of India, adjacent to the Bay of Bengal, and experiences a tropical climate. The summer months can be notably humid, while the monsoon season brings substantial rainfall, followed by relatively mild winters.
Renowned for its historical landmarks, such as the Government Museum and Valluvar Kottam, Chennai also serves as a prominent IT hub, embodying a blend of tradition and modernity within its cultural framework. The city currently boasts a population of approximately 12 million residents.
Chennai is widely recognized for its information technology companies and software services, as well as its hardware manufacturing, automobile production, healthcare, and financial services sectors. Significant cultural attractions in Chennai include Marina Beach, Kapaleeshwarar Temple, and Mahabalipuram.
Chennai presents a varied real estate landscape, providing opportunities for investment in both residential and commercial properties. The city has experienced consistent growth in recent years, driven by advancements in infrastructure and a robust economic foundation.
Cost of Living: The cost of living in Chennai remains relatively affordable when compared to other metropolitan areas. Daily and monthly expenses are also within a manageable range.
Infrastructure Development: Chennai boasts a well-developed transportation system that facilitates ease of movement for its residents. Public transport options here include buses, suburban trains, and the metro, which enhance connectivity. Initiatives such as the Chennai Metro Rail Lines (CMRL) are contributing to the appreciation of real estate values.
Chennai’s job market offers a stable lifestyle, particularly in sectors such as automobile manufacturing, information technology, and healthcare. Numerous multinational corporations and startups provide employment opportunities for a diverse workforce.
Promising Sectors: Key industries include automobile manufacturing in Oragadam, IT parks located in Taramani and Sholinganallur, and the healthcare sector.
Neighborhoods: Residential locales such as Old Mahabalipuram Road (OMR), East Coast Road (ECR), and Adyar are highly sought after due to their proximity to IT hubs, educational institutions, and recreational facilities.
Whether to buy or rent a home is a very important financial decision and thus needs various factors to be considered. Below we have provided an analysis on whether you should buy or rent a home in Hyderabad or Chennai.
South India’s real estate market is said to be stable in comparison to North India. Also, when compared to other major cities of India, both Hyderabad and Chennai in the South offer properties at affordable prices. Considering the current market conditions in both the cities, it often becomes difficult to decide on whether one should purchase or rent a property.
Apart from determining major merits and demerits of buying and renting a home the most ideal way to deal with this confusion is to compare the Equated Monthly Installments (EMI) with monthly rent.
An analysis of the advantages and disadvantages of purchasing versus leasing in Hyderabad and Chennai has been conducted, focusing on the average capital and rental costs associated with a typical 2BHK apartment of 1000 square feet. For this analysis, several constants have been established:
Talking about Hyderabad, it is one of the lowest priced real estate markets in India. On an average, a 2 BHK Flat for Rent in Hyderabad can be purchased at Rs 31.65 Lakh. The down payment would be around Rs 6.3 lakh. The complete amount that must be paid after adding the interest amount of Rs 2.78 lakh would come around Rs 28 Lakh. This would come to a total of Rs 1.4 lakh annually or Rs 11,700 on a monthly basis.
Now, if this flat has been rented, then the average monthly payment would be approximately Rs 12,000 per month.
Since the EMI you would pay when purchasing a flat and the rent you would pay to stay as a tenant in the flat would be similar, it is a clear indication that buying a property rather than planning to rent apartment in Hyderabad would be a better decision.
Chennai too also is one of the lowest priced real estate markets in India. A 1000 sq ft 2 BHK apartment in central Chennai can cost up to 98 Lakh. A person looking to buy such an apartment would have to pay almost Rs 36000 per month as EMI, whereas the same person if want to pay rent for this apartment, then he must pay the renting cost of about 20,000 per month.
Considering the huge price difference over the long term, it would be best to rent a house in the central areas other than buying a property.
In North and West Chennai, the expense associated with purchasing an apartment exceeds renting. Nevertheless, the disparity between the monthly payments for an EMI and the rent is minimal. In North Chennai, for instance, the EMI amounts to Rs 19,000, while the rent is Rs 12,500 monthly. In West Chennai, the EMI is approximately Rs 17,700, with the rent being around Rs 11,500 monthly.
Although renting is more economical, prospective homeowners might contemplate acquiring property as a means of securing a long-term asset. Additionally, investing in growth corridors may lead to significant price appreciation over time.
South Chennai serves as the city’s IT hub, making it the most dynamic real estate market. The typical cost for a 1000 sq ft property is approximately Rs 57 lakh. Upon making a down payment of Rs 11.4 lakh, the buyer would be responsible for an additional Rs 50.61 lakh over a span of 20 years, which includes an interest component of Rs 5 lakh. Consequently, the monthly installment would amount to Rs 21,000.
In contrast, the average rental prices in South Chennai are significantly lower, standing at Rs 13,200 per month. Considering the substantial difference in long-term financial commitments, renting a property appears to be a more prudent option than purchasing in South Chennai.
Although whether to buy or rent 4 BHK, 3BHK, 2BHK, or 1 BHK House for Sale in Hyderabad or Chennai is a crucial decision and a lot is dependent on individual factors, this analysis of property cost and rent is just an indicative one, based on current capital and rental trends. The final decision on whetherto buy or rent property in Chennai or Hyderabad would depend on your personal requirements such as your financial condition, location, need and intension.
In conclusion, both Hyderabad and Chennai are esteemed as significant centers for IT professionals, each possessing unique benefits. Hyderabad is distinguished by its mild winters and robust IT and biotechnology sectors, whereas Chennai boasts a flourishing IT and automotive industry, complemented by its rich cultural heritage.
Both cities offer substantial prospects for real estate investment and career advancement, with their consistent population growth indicating a rising number of professionals relocating to these areas. Ultimately, the decision of choosing to live in Chennai vs Hyderabad is influenced by individual preferences concerning climate, industry focus, and lifestyle choices.
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