Chennai, the capital city of Tamil Nadu, is known for its bustling IT hubs and thriving manufacturing and healthcare sector, which generate numerous job opportunities. The influx of working professionals has led to an increase in demand for housing in recent years. Further, enhanced connectivity and infrastructure developments, such as the Chennai Metro expansion projects, have led to the growth of real estate investments in key localities. Prominent real estate players have announced major investments in Chennai. Such investments and infrastructural developments are set to boost the property market in the city.
In this guide, we explore the top localities in Chennai where you can buy a house and share the latest market trends.
Chennai Property Market Trends 2024
According to a Housing.com Research report, the average prices of residential properties saw a 20% YOY growth during the April-June 2024 quarter, at Rs 7,155 per square foot (sqft). Typically, the residential segment picks up pace in the July-September quarter and peaks during the festive season. Further, the report stated that the government made key announcements during Budget 2024, incentivising housing ownership and funding in the sector. This is expected to push project construction, especially in the affordable segment.
Key drivers of the Chennai property market include:
- The Chennai-Bengaluru Industrial Corridor, which is expected to be completed by 2025, is a 560-km corridor covering Chennai and key cities in Andhra Pradesh and Karnataka. Industrial parks, business zones, and logistics hubs will be located along the corridor.
- The Chennai Metro Phase II expansion of 118.9 km comprising three corridors is coming up, which is expected to steer real estate developments across the city.
- The growth of businesses across sectors, especially IT, manufacturing and healthcare, has been driving the real estate market in the city.
- Government initiatives, including RERA have helped in developing confidence among buyers and investors.
Top localities in Chennai 2024
| Mirco-market | Top localities | Average prices (in Rs per sqft) | Monthly rentals | Rental returns in % |
| Chennai Central | Anna Nagar | Rs 15,050 | Rs 32,000 | 3-4% |
| Â | Alwarpet | Rs 22,251 | Rs 1 lakh | 2-3% |
| Chennai North | Madhavaram | Rs 6,683 | Rs 24,000 | 7-8% |
| Â | Kolathur | Rs 6,579 | Rs 29,000 | 2-3% |
| Chennai South | Perrumbakkam | Rs 5,466 | Rs 28,500 | 3-4% |
| Â | Velachery | Rs 8,941 | Rs 22,863 | 2-3% |
| Chennai West | Avadi | Rs 5,255 | Rs 8,500 | 5-6% |
| Â | Koyembedu | Rs 8,806 | Rs 16,800 | 3-4% |
| OMR | Sholinganallur | Rs 7,048 | Rs 45,750 | 5-6% |
| Â | Medavakkam | Rs 6,314 | Rs 25,267 | 2-3% |
Liveability index of Chennai
According to the Ease of Living Index, an assessment tool used by the Ministry of Housing & Urban Affairs, Chennai ranks as the fourth most liveable cities in India in 2024, with Bangalore, Pune and Ahmedabad at the first, second and third position, respectively. According to the report, the liveability score for Chennai is 62.61 while it is 66.7 for Bangalore, 66.27 for Pune and 64.87 for Ahmedabad. According to the latest report by Knight Frank India on the Affordability Index, home affordability has remained stable in H1 2024 (January to June 2024) as interest rates have stayed steady since the end of 2023. While Ahmedabad is the most affordable housing market among the top eight cities with a ratio of 21%, Chennai ranks at fourth place with a ratio of 25%.
Top localities to buy a house in Chennai
Anna Nagar
A prominent upscale neighbourhood of northwestern Chennai, Anna Nagar has a well-planned layout with parks, premium schools, shopping malls and reputed hospitals. An underground metro station serves the locality on the Chennai Metro Green Line and public transport facilities are easily accessible. There are employment hubs within 5 km of the locality, such as Prince Info Park and One India Bulls Park. The area is home to several politicians, doctors and lawyers in the city.
Pros: The prime location of Anna Nagar is its major advantage, as it is near commercial hubs and connects to arterial roads. The area is known for its greenery and well-developed social infrastructure.
Cons: One of the challenges that residents face is traffic congestion due to a large of commuters accessing the metro and buses.
Housing options: The locality has numerous gated communities, luxury apartments and villas of 3BHK and 4BHK, bungalows and independent houses.
Alwarpet
Alwarpet is a residential neighbourhood in central Chennai and is known to be one of the most expensive real estate markets in the city. It is well-connected to other upscale localities through Pasumpon Muthuramalinga Thevar Road, Cenotaph Road, Mount Road, Luz Church Road, and Canal Bank Road. The Teynampet metro station on the Chennai Metro Blue Line is the nearest metro from the locality. Further, Alwarpet is close to prominent commercial hubs, retail hub and IT corridors along the Old Mahabalipuram Road.
Pros: The Chennai International Airport is around 15 km from the area, which makes it a desirable locality for working professionals. Alwarpet is an ideal investment option as the rentals are high.
Cons: Congestion on the roads is a frequent issue faced by the residents. Further, it is one of the most expensive localities and the cost of living will be higher.
Housing options: The locality has several independent houses, high-end villas and apartments.
Madhavaram
Madhavaram is a northern suburb of Chennai with good road connectivity through the National Highway-5, Jawaharlal Nehru Flyover and Madavaram Red Hills Road. There are reputed educational institutions and other social infrastructural facilities. The Madhavaram Depot metro station on the Chennai Metro Red Line provides residents with metro access.
Pros: The locality is comparatively more affordable than other areas, and there are properties suiting every budget, especially the affordable segment.
Cons: Traffic congestion and flooding of Madhavaram Lake due to encroachment and pollution are some of the issues faced by the residents.
Housing options: Residential properties of 2 and 3BHK sizes in gated projects are the most popular choice among home seekers in the locality. Residential plots and villas are also available.
Kolathur
Kolathur is a well-developed neighbourhood in northern Chennai surrounded by other prominent localities such as Perambur, Villivakkam, and Korattur. The Grand Northern Trunk Road is close to the locality, connecting other key areas of the city. There are markets and malls catering to the daily needs of the residents. Good public transport facilities are available.
Pros: The locality is preferred mostly by the mid-segment buyers, which includes those working in the commercial and industrial hubs in the vicinity.
Cons: Waterlogging, poor road conditions, traffic issues, and pollution caused by industries nearby are some of the common problems.
Housing options: Luxury 2, 3 and 4BH flats in gated projects, plots, villas and independent houses are available for sale.
Perrumbakkam
Perumbakkam is one of the top localities in Chennai due to the presence of IT parks. There is a well-developed social infrastructure, including schools, colleges, hospitals, shopping complexes, etc., making it an ideal destination for families. Public transportation is easily accessible from here.
Pros: The locality is well-connected to the IT hubs of OMR and Sholinganallur, which makes it a preferred choice for working professionals.
Cons: Traffic congestion, flooding and water stagnation are common problems faced by residents.
Housing options: There is a range of residential options, from low-income apartments to luxury gated projects. Residential plots and independent houses are also available.
Velachery
Velachery is a developing locality in south Chennai with several educational institutions, markets, healthcare centres, etc. There are various business and industrial hubs in the vicinity. The locality is well-connected to central business districts and the IT corridor of OMR, drawing several working professionals.
Pros: Velachery has strategic location advantages with excellent connectivity through the Velachery Main Road, GST Road and OMR. It is around 14 km from the Chennai Airport, thus attracting a lot of investors and homebuyers.
Cons: Velachery is located in a low-lying area and faces flooding and water-logging issues.Â
Housing options: Residential units such as 2 and 3 BHK apartments in gated projects are available. Luxury apartments of 4 and 5 BHK units are also available.
Avadi
Avadi is a suburban locality known for its greenery and fast-developing social infrastructure. There are several industries thriving in the region, which draws a lot of home seekers to this area. There are good public transport facilities and reputed schools, medical facilities and shopping centres in the vicinity.
Pros: Upcoming metro link, emerging IT hubs, and commercial centres in the region make Avadi an ideal real estate destination. The affordable property and land rates make this area popular for investment.
Cons: Limited social infrastructural facilities are one area of improvement for the locality.
Housing options: Residential units such as 1, 2 and 3 BHK apartments in gated projects are available.Â
Koyembedu
Koyambedu is a locality in western Chennai and strategically located near the junction of major arterial roads like Poonamallee High Road and Inner Ring Road. The Koyambedu market drives the commercial growth of the region. Besides, there are shopping malls, dining outlets, schools, colleges, and hospitals that cater to the lifestyle needs of the residents. The Koyambedu Metro Station on the Chennai Metro Green Line provides metro connectivity to the residents, apart from other public transport options.
Pros: The area has a well-developed social infrastructure catering to every need of the residents. Moreover, it has witnessed a surge in commercial developments.
Cons: Civic amenities such as proper waste disposal are some common issues. Â
Housing options: There is a range of residential options, such as 2, 3 and 4BHK apartments and independent houses, which are available here.
Sholinganallur
Sholinganallur is a prominent locality in south Chennai that has seen significant growth due to its thriving IT hubs. IT parks and the Elcot SEZ attract a lot of working professionals in this area. The Chennai International Airport is around 20 km from the locality. There are schools, hospitals and other facilities for the residents. MTC and TNSTC buses and an upcoming metro station promise good connectivity to this locality.
Pros: The strategic location of Sholinganallur, with robust connectivity and the presence of employment hubs, are major plus points for investing in this locality.
Cons: Residents have reported traffic congestion and drinking water issues.
Housing options: Modern gated communities have come up in the locality offering 2, 3 and 4BHK apartments. Plots, villas and independent houses are available for investment.
Medavakkam
Medavakkam is located in southern Chennai and is a popular residential neighbourhood. The locality is close to the IT corridor of OMR, which attracts several IT professionals looking for housing options. Further, there are shopping complexes, schools, hospitals, etc. nearby. The Chennai Airport is around 14 km from the area. An SEZ is also coming up along the Medavakkam Sholinganallur road. Public transport facilities are available. Moreover, Chennai Metro Phase 2 will connect Medavakkam to other parts of Chennai.
Pros: The upcoming metro link and proximity to employment hubs and the airport are the major advantages of this locality.
Cons: Traffic congestion and road encroachment are some issues the residents face.
Housing options: Residential plots, 2, 3 and 4BHK apartments and luxury villas are available for sale.
Things to consider when buying a property in Chennai
Evaluate the neighbourhood
When considering investment in any city, it is essential to understand how the various micro-markets are performing and the unique advantages of each locality. Localities close to the airport such as Old Mahabalipuram Road (OMR), Alwarpet, Poonamallee, Velachery, etc. are ideal for investment as one can look forward to high rentals. Investing in emerging localities with upcoming infrastructure projects will offer higher appreciation in the future. Hence, one should take future growth potential into account when purchasing real estate.
At the same time, when buying properties for end-use, choose areas with robust infrastructure, transportation and upcoming metro links, schools, hospitals, etc., and proximity to employment hubs. This will ensure a comfortable lifestyle and reduce hassles.
Assess the type of properties available
If you are looking to invest in residential real estate, there are various options, such as residential plots, apartments, independent houses, villas, etc. It is important to decide the type of property based on your needs and budget preference. Each type of property has its unique features and advantages. You can choose a residential plot in a developing locality if you are building your own house or for investment purposes. They offer high appreciation rates. On the other hand, ready-to-move-in apartments are an ideal choice for staying or for earning immediate rental income.
Study the market trends
It is essential that you have a fair understanding of the market demand and the latest trends. Look for the current trends in terms of property price movements and types of properties that have seen growth and demand. Also, find out the future growth projection in the locality. This will help you devise your investment strategy in a better way and make an informed decision. Â
Follow legal procedures
Legal due diligence is a must when investing in a property. You can approach a legal professional who can guide you through the process. Make sure to have a checklist of all documents, including the title deed. It is important to check if the approvals and NOCs from relevant authorities have been obtained. Check the encumbrance certificate, which shows if the property has any encumbrances – financial or legal liabilities.
Property registration
Make sure you are aware of the property registration process in Chennai. It is also essential to know the latest guideline values, stamp duty, and registration charges. It will help you estimate the total cost of your property purchase.
Housing.com News Viewpoint
Chennai is one of the top metro cities in India and has witnessed significant growth in the real estate sector over the years. The primary reasons driving this growth include the growing IT hubs and new infrastructure projects aimed to boost connectivity. If you are looking to buy a property in Chennai, consider various factors, including your budget preference, locality and availability of properties, price, growth potential of the area, etc. You can access online real estate platforms to find listings of properties and start your home-buying journey in the comfort of your home. Â
FAQs
What types of properties are available for investment in Chennai?
Residential plots, independent houses, apartments and villas are the common types of properties available for investment in Chennai.
Which is the fastest-growing area in Chennai?
Areas near the Chennai International Airport are witnessing significant growth.
What are the stamp duty and registration charges in Chennai?
The stamp duty in Chennai is 7% of the property’s market value while the registration charge is 4%.
What are the top localities of Chennai?
The Old Mahabalipuram Road (OMR) areas, such as Sholinganallur and Medavakkam, are some of the top localities in which to invest in Chennai.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
