Chennai Rental Market Trends for IT Professionals

Chennai Rental Market Trends for IT Professionals

Introduction

Chennai, famous for its booming IT sector, is seeing a rise in rental demand, especially in areas like Sholinganallur and Perungudi. This article will explore the rental demand patterns, best leasing strategies, and returns for suburban investors.

Rental Demand Patterns

• IT Hubs: Regions like Old Mahabalipuram Road (OMR) and GST Road have become popular for rental properties. 2BHK flats in these areas are priced between ₹20,000 and ₹30,000 per month, attracting IT professionals and students.
• Suburban Shift: Areas like Tambaram and Poonamallee are gaining traction due to improved infrastructure and affordable prices, providing spacious living.

Optimal Leasing Strategies

1. Pick High-Demand Areas:

• OMR (Sholinganallur, Perungudi): Modern flats with smart tech, energy-efficient, systems and security attract IT professionals.
• Anna Nagar and T. Nagar: Great for families looking for a well-established neighborhood.

2. Compute Rental Yield:
For a ₹60 lakh property in OMR rented at ₹25,000 per month, the annual yield is roughly 5%.

3. Create a Rental Agreement:
Include details like rent, deposit, and maintenance. Register the agreement if the rent goes above ₹50,000 per month to follow local laws.

Returns for Suburban Investors

Suburban areas are seeing a surge in rental interest, offering higher yields compared to urban centers. Investors can achieve rental yields over 5% in strategic locations, with potential for long-term capital growth.