Best Place for Residential Property Investments in Chennai
Chennai has witnessed immense growth in the IT sector in the past years. The IT sector and the automobile industries have been the main drivers of both the southern and the western markets. This has further led to the increase in demand for residential property and the launches across the country in these regions as there is an increase in employment opportunities.
Ambattur, Oragadam, Old Mahabalipuram Road, Gudavanchery, Pallikaranai, etc. are some of the top locations in Chennai for residential property developments and investment. People also prefer Anna Nagar, Tiruvallur, Korattur, and Avadi for residential investments.
This article will deal with the various localities in Chennai which has been the main attraction for investors.
Ambattur is located in the north-west region of the capital city of Tamilnadu. It is surrounded by Anna Nagar, Padi, Mogappair, Korattur, Ayappakkam, and Avadi. Ambattur has an area of 45 km² and also has the Ambattur railway station of the Chennai Suburban Railway which facilitates connectivity to the rest of the city. The industrial growth in Ambattur has led to the large-scale demand for residential properties. Since the development of the IT sector, job opportunities have improved in the city which has led to the migration of citizens from different parts of India. This in turn has led to an increase in the demand for residential property. Major demand has been observed in the ₹40-80 lakh housing budget segment as the average property prices range between ₹4,000-4,400 per sq. ft. in Ambattur.
Oragadam is a city which is located along NH 4 and is considered to be one of the most attractive suburbs of Chennai. The main reason for this is due to the presence of various Fortune 500 companies in the Oragadam-Sriperumbudur industrial belt which is also the largest. Reports have shown that around 4000 units have been launched into the residential market in the past five-year span. The average capital value, quoted in recent times, is around ₹3,300 to 3,600 per sq. ft. The main launches in this part of Chennai are largely in the mid-income segment and fall under the bracket of Rs. 45,00,000- Rs. 80,00,000.
The Old Mahabalipuram Road (OMR) stretch is around 45 km and is termed the IT corridor. It has witnessed a hike in the residential real estate market due to the job opportunities opened up by the increase in IT Parks and IT companies. The demand for properties in OMR is for properties that fall under the mid-income segment having a price bracket of ₹40-80 lakh. OMR also continues to be an attractive spot for homebuyers as around 35,000 units have been launched in the past 5 years span. The average capital values of OMR, as reported by industrial experts, fall between the brackets of ₹3,500-5,900 per sq. ft.
Gundavancherry is a Panchayat Town in the district of Chengalpattu district and is also a part of the Chengalpattu taluk in the state of Tamilnadu. It is undoubtedly one of the most promising affordable residential hotspots in Chennai due to the presence of several industrial parks and predominantly the IT parks. Gundavancherry also offer good connectivity facilities and also a well- established infrastructure. This has also further led to the increase in the increase in the residential property demand as well. Gundavancherry also recorded over 4500 residential units’ lunches between 2013- 2018. The current capital values of Gundavancherry is between ₹3,200 and 3,600 per sq. ft. bracket.
Pallikarani is a region which lies close to the IT or ITeS and other industrial clusters of the main city. The merger of the micro markets under the Corporation of Chennai has offered great scope for residential developments in the region. The reports have proven that around 3,300 units were launched between 2013- 2018. The current capital values of Pallikarani is ranges between ₹4,500 and 4,900 per sq. ft.
Korattur is an important part of the Ambattur and is also situated closer to Anna Nagar. It is also an attractive spot for property investment. Like Anna Nagar, Korattur also has a layout which has been well planned and completed with housing facilities provided by the Tamil Nadu Housing Board. This further makes Korattur an attractive housing option for families looking to invest. The region is also very well connected to the Chennai city center by means of local train services as well as city bus facilities. It is also contains a well setup infrastructure along with several schools and hospital. It also provides a scenic investment opportunities as it also contains the Korattur Lake, which provides it with some green space. The current capital values of Korattur ranges between Rs 4,400-11,000 per sq. ft.
The residential real estate market in Chennai is hugely dependent on the commercial development in the city. Chennai is also home to several migrants like Bangalore and Hyderabad due to job opportunities and better quality of education, lifestyle and recreational facilities. The increased population has led to the demand for residential property is mainly in the affordable and mid-income segments. Assetmonk is an investment platform which offers properties in cities such as Bangalore, Hyderabad and Chennai. Assetmonk also helps in identifying properties that match your pocket size and are also safe to invest. Some of the major investment projects of Assetmonk in Chennai includes Sparkle towers and Panama Blue towers in Kelambakkam along with PCC Series I and PCC Series II in PBEL City which is a lively community which brings together both luxury and modernity which helps in making everyday life of investors life more exciting. Contact us to know more!
Frequently Asked Questions on Best Place for Residential Property Investments in Chennai :
The flats offering 1BHK and also 2BHK is the most preferred form of residential investment in Chennai. Propel also prefer to buy plots in case they are looking for more flexible and customized homes. However, those intending to invest in Chennai for the rental benefits it offers, normally invests in flats with 2BHKs are they are more sought for.
The two percent rule provides that the rent charged on the property should be at least two percent of the total purchase price of the property.
Paying off the mortgage on the rental property is a good idea as it helps in generating instant cash flow which helps in increasing the monthly income. In cases wherein you are planning to sell of your property, your property will earn 100 percent equity which will help you in obtaining better cash returns.
Rental properties can create income, however the return of investment does not happen right away. Investment in the rental property can also be a risky as there are several variables that can affect the performance of your investments in such properties.
In India, an average yield of 3% has been recorded per sq. ft. stands. However, there are some micro-markets which provides rental yield of almost 4.5%.