Chennai, the capital of Tamil Nadu, is one of the most prominent cities in southern India. Except for a few months in summer, the city enjoys pleasant temperatures throughout the year. With the longest urban beach in the country and Tidal Park, Asia’s largest IT park housing over 4,000 technology firms, Chennai is a dream destination for IT professionals.
And hence, real estate investment in Chennai is a promising proposition for homebuyers due to the high demand for rentals from students and job seekers, ensuring attractive rental returns. Additionally, the steady appreciation in property prices offers decent resale values, making it a sound investment.
However, prospective investors should also consider factors such as water supply, cleanliness, and civic amenities when choosing a locality. Before deciding on a location to invest in Chennai, it’s also crucial to examine historical price trends, as not all areas promise high returns.
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Now, if you are considering where to invest in Chennai, explore the list of residential properties in the following localities.
Medavakkam,
If you’re looking for a home in South Chennai, Medavakkam offers a wide range of affordable residential options. This locality saw a significant number of new launches in Q4-2023 and is conveniently located near four major IT hubs: Sholinganallur (6 km), Thoraipakkam (9 km), Taramani (11 km), and Perungudi (12 km). This proximity makes it an ideal choice for corporate workers seeking mid-segment housing.
Medavakkam’s appeal goes beyond its strategic location. The area boasts uninterrupted connectivity via the Mambakkam-Medavakkam Road and offers ample schools, healthcare centers, and entertainment facilities.
This comprehensive infrastructure with lot of properties for Sale in Medavakkam
has contributed to a 9.1 percent property price growth in the past year.
Image Source: https://chennai.nic.in/
Currently, the average price for 2 BHK apartments in Medavakkam ranges from Rs 45 lakh to Rs 69 lakh, while 1 BHK units start at approximately Rs 27.49 lakh.
| Area | Type of Property | Average Property Price Per Square Foot. |
| Medavakkam | Residential Flats | Rs 6000 (Per Sq Ft) |
Velachery
Velachery in South Chennai is a premium locality offering excellent social amenities, sound connectivity, and growing infrastructure. With renowned healthcare facilities and educational institutions, it provides easy access to essential social utilities.
Velachery is well-connected to the Grand Southern Trunk Road and Rajiv Gandhi IT Expressway, ensuring seamless transport links. However, its appeal extends beyond connectivity. The locality’s proximity to major employment hubs such as Mpl Silicon Towers, Chennai One IT SEZ, and Bahwan IT Park, all within eight kilometers, makes it a favored choice for homebuyers and investors.
The average property price in Velachery is Rs 8,350 per sq ft. However, the 2 BHK apartments in the locality range between Rs 56 lakh to Rs 85 lakh, and 3 BHK apartments are priced at Rs 90.95 lakh to Rs 1.43 crore.
| Area | Type of Property | Average Property Price Per Square Foot. |
| Velachery | Residential Flats | Rs 8,350 (Per Sq Ft) |
Porur
Porur is a sought-after residential locality in Chennai, ideal for real estate investment. It is conveniently located near chemical plants, manufacturing companies, and IT parks. Notably, the DLF IT Park, where one can find villas for Rent in Porur nearby is just 3.5 km from Mt. Poonamalle High Road.
| Area | Type of Property | Average Property Price Per Square Foot. |
| Porur | Residential Flats | Rs 8,465 (Per Sq Ft) |
Korattur
Korattur, located in West Chennai, is a part of the Ambattur Industrial Zone, just 5 km away, and is situated along the Chennai-Thiruvallur High Road. Well-served by the Korattur Railway Station and the Chennai Suburban Railway Station, approximately 14 km away, Korattur is considered one of the best places to buy a house in Chennai.
Renowned for its thick foliage, Korattur hosts the Tamil Nadu Housing Board (TNHB) Colony and various private residential establishments. 60 percent of the housing inventory in Korattur consists of 2 BHK units, while 25 percent comprises 3 BHK configurations.
The proximity to the SIDCO Industrial Estate, 14 km away, along with numerous educational institutions and hospitals in and around Korattur, drives housing demand in the area. Additionally, lower property values compared to the neighboring locale of Perambur further enhance its appeal.
| Area | Type of Property | Average Property Price Per Square Foot. |
| Korattur | Residential Flats | Rs 6,700 (Per Sq Ft) |
Urapakkam
Urapakkam, situated between Vandalur and Guduvancherry on the Grand Southern Trunk (GST) Road, offers everything modern homebuyers desire. With towering apartment buildings, bustling junctions, and a plethora of popular retail stores, this micro-market has become one of the most favored residential investment destinations in Chennai. Housing options in Urapakkam include plotted developments, independent houses, and apartments in high-rise gated communities.
The area boasts numerous RERA-registered projects, and its most attractive feature is the affordable property prices, averaging around Rs 4,200 per sq ft. Despite the pandemic, property prices in Urapakkam have risen, highlighting the area’s popularity and investment potential.
Recently, the demand for mid-sized residential plots has surged, outpacing the demand for apartments. This trend is expected to gain momentum in the upcoming quarters.
| Area | Type of Property | Average Property Price Per Square Foot. |
| Urapakkam | Residential Flats | Rs 4,200 (Per Sq Ft) |
Choolaimedu
Choolaimedu is a prominent residential and commercial area in Chennai, bordered by popular neighborhoods like Kodambakkam, Vadapalani, MMDA Colony, and Nungambakkam. Experts consider it one of the best areas to buy a house in Chennai, with property rates around Rs 7,300 per sq ft and monthly rentals starting at Rs 8,000.
Over the past decade, Choolaimedu has seen significant retail development due to its proximity to prestigious educational institutions such as Loyola College, Meenakshi Engineering College, and Panimalar Polytechnic. Additionally, the area is home to several technology parks, including Olympia Tech Park, DLF IT Park, and Tidel Park, all within a 15-minute drive, which fuels residential demand in the region.
| Area | Type of Property | Average Property Price Per Square Foot. |
| Choolaimedu | Residential Flats | Rs 7,300 (Per Sq Ft) |
Anna Nagar
Anna Nagar is one of the most well-planned and sought-after localities for real estate investment in Chennai. Although it is expensive, it attracts home buyers with its range of independent houses, villas, and apartments for sale in Anna Nagar. The influx of job seekers to this area is primarily driven by the proximity to Padi, SIDCO, and Ambattur Industrial Estates.
| Area | Type of Property | Average Property Price Per Square Foot. |
| Anna Nagar | Residential Flats | Rs 9,900 – 16,500 (Per Sq Ft) |
OMR (Old Mahabalipuram Road)
OMR is an excellent area for IT professionals, thanks to its wide roads and ongoing metro construction that facilitate easy travel throughout the city. Known for its tall buildings and gated communities, OMR is a popular choice for those moving to Chennai for IT jobs. Investing in an apartment within a gated community or purchasing villa plots or villas for sale in OMR can be a smart decision, especially with a budget of around 1 crore. This area offers significant potential for both rental income and future resale value.
| Area | Type of Property | Average Property Price Per Square Foot. |
| OMR | Residential Flats | Rs 5,211 (Per Sq Ft) |
Pallavaram
Pallavaram’s booming real estate market offers not only top-notch infrastructure and excellent living conditions but also a variety of residential options. The area is a prime investment opportunity due to its strategic geographical location. As one of Chennai’s best-connected locales, Pallavaram sits at the junction of the Old Mahabalipuram Road (OMR) and Pallavaram-Thoraipakkam Road, ensuring seamless travel within and outside the city. Additionally, the East Coast Road (ECR), Outer Ring Road (ORR), and Trichy-Chennai Highway are nearby.
Residential properties for sale in Pallavaram include apartments, independent houses, and builder floor units. What makes Pallavaram particularly attractive is its relative affordability, with average property prices significantly lower than in neighboring Guindy.
In terms of employment opportunities, Pallavaram is close to several IT Parks, such as Olympia Tech Park, the Chennai Trade Centre, and SIDCO Industrial Estate, all within a 10 km radius. This commercial growth has boosted rental demand in the area.
| Area | Type of Property | Average Property Price Per Square Foot. |
| Pallavaram | Residential Flats | Rs 5,600 (Per Sq Ft) |
Top Reasons to Invest in Chennai Real Estate
Chennai is a vibrant metropolis with a rich cultural heritage, a diverse economy, and a thriving real estate market. Over the years, it has become a prime destination for real estate investment, drawing investors from across India and around the world.
Several key factors make Chennai’s real estate sector an appealing option for both seasoned and new investors:
Economic Growth: Projections indicate that Chennai will play a significant role in Tamil Nadu’s economic growth in the coming year. With the economy set to expand, the city is likely to see an increased demand for real estate, driving up property prices and creating lucrative investment opportunities.
Government Initiatives: The state government’s proactive measures to attract businesses and create jobs are expected to have a positive impact on Chennai’s real estate market. By fostering an environment conducive to sustainable growth, the government is likely to boost demand for both commercial and residential properties.
Affordability: Chennai’s real estate market offers competitively priced properties, making it an appealing investment destination. Properties in the city’s outskirts often provide excellent value for money compared to those in prime urban areas.
