The Chennai rental housing market has emerged as a dynamic and thriving sector in recent years, reflecting the city’s rapid urbanization and economic development. The city’s burgeoning cosmopolitan environment has significantly contributed to the growth of its rental market, making it an attractive prospect for both property owners and tenants.
Economic Development and Educational Institutions the Key Drivers
One of the primary driving forces behind the expansion of the Chennai rental housing market is the city’s status as a major economic hub in South India. Chennai is home to a wide range of industries, including IT/ITeS, manufacturing, healthcare, and automotive. Consequently, it has attracted a large workforce from across the country, creating a substantial demand for rental accommodation. Young professionals, drawn by the promise of lucrative job opportunities, have flocked to the city, contributing to a consistent and growing demand for rental properties.
Chennai’s reputation as an educational centre of excellence has further fuelled the rental housing market’s growth. The city is home to numerous prestigious institutions and universities, making it a magnet for students from various regions. This influx of students has led to a robust demand for affordable and conveniently located rental accommodations, particularly in areas close to these institutions.
Where are people looking to rent a home in Chennai?
According to our findings on online rental property searches in Chennai, Velachery and Kodambakkam garnered the highest number of inquiries for rental accommodations. Following closely are Thiruvanmiyur, Choolaimedu and Thoraipakkam, which also ranked as frequently searched areas online.
Notably, Velachery, Kodambakkam and Choolaimedu observe average monthly rental values of INR 9,000-11,000 per month, INR 14,000-16,000 per month and INR 11,000-13,000 per month respectively, while those in Thiruvanmiyur and Thoraipakkam typically range from INR 33,000 – INR 35,000 per month. Besides these areas, other sought-after online searches for rental housing also encompass peripheral neighbourhoods such as Sholinganallur, which, understandably, has relatively lower rental values and are quoted within INR 6,000 to INR 8,000 per month.
Major factors contributing towards the appeal of these localities
The growing popularity of these localities in Chennai among prospective tenants can be attributed to their strategic location, proximity to employment centres and educational institutions, efficient transportation options, and the presence of a wide range of amenities.
While Choolaimedu and Kodambakkam’s central location ensures easy access to major business districts, educational institutions and other parts of the city, Velachery is strategically located near prominent IT parks and commercial zones, such as Tidel Park and the OMR stretch. This close proximity is a significant draw for IT professionals seeking a short commute to work. On the workplace connectivity front, Thoraipakkam score high as it is situated along the OMR that connects IT companies and various parts of the city, thus making it a prudent choice for IT professionals.
Meanwhile, with institutions like IIT Madras in the vicinity, Thiruvanmiyur is highly sought-after by students and academics, ensuring a steady demand for rental accommodations. The Chennai Mass Rapid Transit System (MRTS) serves most areas, providing a reliable mode of public transportation. In Velachery, the MRTS station enhances connectivity, while Thiruvanmiyur enjoys its proximity to the ECR and OMR.
Summing Up
The Chennai rental housing market has seen substantial growth in recent times, largely attributable to the city's economic diversification. Buoyed by improved infrastructure, connectivity, and ease of doing business the city has become an attractive destination for investment, which has, in turn, bolstered the housing market. Today, the neighbourhoods discussed above offer a unique blend of convenience, amenities, and accessibility that cater to the diverse needs and preferences of renters. This upward trajectory in the rental market is indicative of Chennai's progressive character as a metropolis, filled with opportunities and accommodations, that cater to a diverse population.
