Chennai, the capital of Tamil Nadu, is known for its thriving job market, which includes IT hubs and healthcare centres. The city attracts a lot of working professionals, generating a steady demand for rental homes. In addition, upcoming infrastructure like metro projects and expressways are driving the demand for investments in properties. Owing to increased employment opportunities, there is a significant demand for rented accommodations along these corridors. In this article, we will explore the top localities in Chennai to stay on rent.
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10 affordable localities in Chennai for renting
| Affordable localities | Average monthly rentals | Price range | Rent increase in past 1 year |
| Anna Nagar | Rs 32,000 | Rs 13,000 – Rs 50,000 | -15.05% |
| Nungambakkam | Rs 21,700 | Rs 14,000 – Rs 65,000 | 0% |
| Medavakkam | Rs 25,000 | Rs 5,500 – Rs 41,000 | +41.51% |
| Ambattur | Rs 9,800 | Rs 5,500 – Rs 18,000 | -17.46% |
| Porur | Rs 29,400 | Rs 6,000 – Rs 60,000 | +19.42% |
| Avadi | Rs 8,500 | Rs 4,500 – Rs 20,000 | -7.95% |
| Velachery | Rs 22,800 | Rs 8,500 – Rs 35,000 | -14.55% |
| Grand Southern Trunk Road (GST) Road | Rs 10,500 | Rs 4,300 – Rs 22,000 | -19.02% |
| Arcot Road | Rs 17,000 | Rs 17,000 – 20,000 | -1.76% |
| Old Mahabalipuram Road (OMR) | Rs 28,000 | Rs 7,000 – Rs 1,00,000 | -9.13% |
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Rental market trends in Chennai
Chennai is among the metropolitan cities in India witnessing rapid growth in the real estate sector, driven by several infrastructure projects and a thriving economy. Property prices in the city have seen a rise due to booming construction activities and rising demand. This also has impacted the rental market in Chennai, resulting in a significant growth in rental rates across key localities. The major driving factor is the growth of employment hubs. The demand for rented homes mainly comes from working professionals and students moving to the city.
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Key drivers for the Chennai rental market include
- Upcoming infrastructure projects such as Bengaluru-Chennai Expressway and Chennai metro network expansion
- Availability of affordable rented accommodations across localities
- Growth of IT hubs and educational institutions, attracting home seekers
- Rising property values, resulting in increased investments for rental returns
10 affordable localities in Chennai for renting
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#1. Anna Nagar
Anna Nagar is a bustling locality in northwestern Chennai with well-developed social infrastructure, including schools, colleges, markets, hospitals, etc. It has a metro station, which is part of the southeast corridor of the Green Line of Chennai Metro. Employment hubs of Ambattur Industrial Estate, Padi Industrial Estate and SIDCO Industrial Estate are located nearby. The Chennai airport is around 16.5 km from the locality.
Pros: Robust social infrastructure and easy availability of public transport make this location a preferred destination for renters.
Cons: The area is crowded, and the lack of adequate parking spaces is a problem for the residents.
Rent options: Spacious apartments of 3 and 4BHK and independent builder floors are available for rent.
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#2. Nungambakkam
Nungambakkam is a well-developed neighbourhood in Central Chennai, located close to prominent IT and industrial hubs. There are public and international schools, markets and other social infrastructural facilities. Due to easy access to the Chennai airport, which is around 15 km, the locality is preferred by working professionals and businesspeople. Major railway stations are 8 km from the area.
Pros: The central location of Nungambakkam gives the residents an advantage as commuting to other parts of the city is easy. The area has metro connectivity with the Thousand Light Metro Station located around 4 km.
Cons: The roads are congested, and the lack of bigger international schools is a concern for the residents.
Rent options: Affordable flats of 1 and 2BHK sizes and villas are available for rent.
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#3. Medavakkam
Medavakkam is a well-known residential locality in southern Chennai. It attracts a lot of renters due to its proximity to the IT hubs along OMR. A special economic zone is also coming up along the Medavakkam Sholinganallur road, which is expected to draw a lot of home seekers. There are schools, reputed hospitals, shopping complexes, and markets that meet the daily needs of the residents. The airport is located around 14.5 km from Medavakkam. The Shenoy Nagar metro on the Green Line connects this area. The Velachery-Tambaram metro link will further boost connectivity.
Pros: The location is advantageous for office goers due to metro connectivity and easy access to IT parks and the airport.
Cons: Narrow roads, traffic congestion and parking issues are common problems faced by the residents.
Rent options: Affordable flats of 1, 2 and 3BHK are available for rent in the locality.
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#4. Ambattur
Ambattur is a prominent locality in northwestern Chennai, which enjoys good connectivity to the Ambattur railway station under the Chennai Suburban Railway. It is well-connected to other parts of the city through Chennai Tiruvallur High Road and Chennai Bypass Road. There are schools, medical facilities, markets and public transport options.
Pros: The area is easily accessible to IT hubs, which makes it an ideal choice for working professionals.
Cons: Lack of metro, traffic congestion, and parking issues are some of the challenges faced by the residents of this locality.
Rent options: Apartments with 1, 2, and 3 BHK options are available for rent.
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#5. Porur
Porur is a fast-developing neighbourhood of Chennai known for the presence of Porur Lake and many industries and IT hubs. There are schools, colleges, shopping complexes and other social amenities. The Chennai airport is around 13.2 km from the area, which makes it a popular destination for working professionals looking for homes. Railway stations are 14 to 17 km away. Besides, Porur is at the junction of the Chennai-Bangalore expressway and other upcoming road projects. There is also an upcoming metro connectivity to Porur.
Pros: Strong connectivity, upcoming infrastructure projects and easy accessibility to the airport are of the major advantages of this location.
Cons: Traffic congestion is a major issue in this locality.
Rent options: High-rise residential projects are coming up in the neighbourhood, offering 2 and 3 BHK apartments.
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#6. Avadi
Avadi is a suburban locality in Chennai known for its low cost of living and well-developed social infrastructure. There are industries in the vicinity that offer employment opportunities to people. Thus, it is a sought-after locality among renters. Public transportation is easily available. Several new residential and commercial projects are coming up in this locality.
Pros: The area has several social infrastructural facilities to meet the daily needs of the residents.
Cons: The area does not have a metro station.
Rent options: Several housing options are available, including independent builder floors and apartments of 1 and 2BHK sizes.
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#7. Velachery
Velachery is a well-developed neighbourhood in south Chennai, which is close to the Chennai airport, located around 9.5 km away. The presence of markets, educational institutions, business and industrial hubs make Velachery a highly sought-after locality among renters. The area is well-connected to the Trichur Highway, and arterial roads connect to other parts of the city. The Green Line metro connects to Velachery Checkpost in Chennai.
Pros: The proximity to educational institutions, including IIT, industrial hubs, and the airport, drives the demand for housing in the region.
Cons: Traffic congestion and parking issues are common problems faced by the residents.
Rent options: Spacious and high-end apartments of 3 and 4 BHK sizes are available for rent.
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#8. Grand Southern Trunk Road (GST) Road
GST Road, known as the Grand Southern Trunk Road or National Highway 45, is a major arterial road in Chennai and an important real estate destination. There are IT parks, educational institutions, and industrial hubs, which drive the demand for properties. It is surrounded by prominent localities such as Guduvancheri, Neelamangalam, Kolapakkam and Madambakkam. Essential facilities such as hospitals, schools, shopping malls and public transportation are available.
Pros: Proximity to employment hubs and Chennai airport attracts a lot of renters to this locality. One can find budget-friendly options for renting and buying.
Cons: The area lacks metro connectivity and there are frequent traffic jams.
Rent options: Budget-friendly 2BHK apartments are among the popular housing options in this locality.
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#9. Arcot Road
Arcot Road is a well-known locality in Chennai and attracts a lot of home seekers due to its proximity to IT and industrial hubs and excellent connectivity. There are social infrastructural facilities, including schools, hospitals, markets, etc. Moreover, the Chennai Metro Phase 2 project is expected to boost connectivity in the region. Besides, the Chennai Airport is around 12 km from Arcot Road. Saligramam, Vadapalani, KK Nagar and Vadapalani are the neighbouring localities.Â
Pros: Well-developed infrastructure, access to the airport and public transportation, and an upcoming metro link are the major advantages of this locality.
Cons: Residents of this locality face frequent traffic jams.
Rent options: Affordable flats of 2 and 3 BHK configurations are available for rent in this locality.
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#10. Old Mahabalipuram Road (OMR)
Old Mahabalipuram Road (OMR), also known as State Highway 49A and Rajiv Gandhi Salai, is a thriving locality and a major IT corridor in the northern suburbs of Chennai. The area is close to metro stations such as Indiranagar and KR Puram. Commercial hubs, such as Mahadevapura Marathahalli and Bellandur, are within a 10 km radius. Moreover, the area has schools, hospitals, markets, etc., ensuring a comfortable lifestyle for the residents.
Pros: The presence of IT hubs and business districts, tech parks and educational institutions has increased the demand for rented homes, resulting in an increase in their availability.
Cons: Increased living costs and overcrowding are some of the issues the residents face.
Rent options: Spacious and high-end apartments with 2, 3, and 4 BHK homes are available in this area.
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Things to consider when renting in Chennai
- Location: When looking for rented accommodations in Chennai, make sure to check if the area is accessible to offices or educational institutions, depending on your priority. Ensure there are markets, shops, medical facilities, etc., to ensure a convenient lifestyle.
- Budget: There are many affordable localities offering budget-friendly flats while some localities are known for high-end apartments. So, make a selection based on your budget needs and convenience. In addition, tenants are required to pay security deposit, which is usually the amount equal to two months’ rent. Discuss these points with your landlord when finalising an apartment.
- Additional charges: Besides the rent, ensure you are aware of the additional expenses in terms of maintenance charges and utility expenses that add up to your total living costs in the city. You may also need to consider brokerage charges, if applicable.
- Lock-in and notice periods: The lock-in period is the time during which a landlord and tenant cannot terminate the agreement. Similarly, both parties have to give a notice period before terminating the tenancy.
- Documentation: Rental agreements should be drafted after the landlord and the tenant have discussed and agreed upon the terms and conditions. It must be duly signed and registered. Typically, property owners have to complete the tenant verification before renting out their property. Make sure all the legal procedures have been completed before you take an apartment on rent.
Housing.com News Viewpoint
Given the city’s infrastructure development, including upcoming metro links and road projects, and a booming IT sector, Chennai is expected to witness a growing demand for homes in key localities. Improved connectivity and robust growth in real estate developments will attract a lot of investments in the city. This is expected to result in an appreciation of property prices. At the same time, rental demand is likely to grow steadily due to the demand generated by the young population of office-goers and students.
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FAQs
Where is the cheapest place to rent in Chennai?
Some affordable localities in which to invest in Chennai include Porur, Velachery, Arcot Road, Medavakkam, Ambattur, Avadi, OMR, and GST Road.
What is the rent for 1 BHK flat in Chennai?
Depending on the locality, the rent for a 1BHK flat in Chennai can range from Rs 6,000 to Rs 20,000.
What is the rent for a 3BHK apartment in OMR, Chennai?
The average rent for a flat in OMR, Chennai, is Rs 28,000.
How much do you need to live comfortably on rent in Chennai?
A monthly salary of Rs 30,000 to Rs 50,000 is ideal to stay comfortably on rent in Chennai.
