Chennai Rents Rise Faster Than Home Prices in IT Corridors, Reports Show

Rents in Chennai's employment-linked suburbs are rising faster than home prices. The city recorded average annual rental growth of 8%, compared with price growth of 5%, according to reports by News18 and The Economic Times published in July and August 2026.

What the reports say

News18 reported on July 24 that average rents across Chennai rose 8% year-on-year. The sharpest rises were in Iyyappanthangal (21.7%), Koyambedu (20.3%), West Tambaram (19.1%), Medavakkam (18.5%) and Thoraipakkam (18%).

The report attributed the rise to Metro expansion, hiring by IT firms and Global Capability Centres (GCCs) along Old Mahabalipuram Road (OMR), and the new Kilambakkam bus terminus. It said tech workers prefer to live close to work in Thoraipakkam, Perungudi and Sholinganallur.

The Economic Times reported on August 7, citing Knight Frank India, that Chennai's average prices rose 5% to ₹7,555 per sq ft in the first half of 2026. Home sales rose 3% to 9,198 units.

The same report said rents rose 8-10% in Sholinganallur, Thoraipakkam, Perungudi and Karapakkam, where indicative prices range from ₹7,000-10,000 per sq ft.

The Hindu reported in March that rents rose 17.5% in Perungudi and about 7% in Sholinganallur and Thoraipakkam. It said rents in Adyar, Velachery and Mylapore were close to flat, quoting an executive named Garg.

Who is affected

Tenants in the IT belt face rising rents. News18 said fully furnished homes attracted 1.4 times the demand of semi-furnished ones, and 59% of tenants preferred gated apartments.

Owners and buy-to-let investors in these suburbs are seeing rental income grow faster than property values. The Hindu reported on September 18 that the Tamil Nadu government had announced a GCC Corridor and Growth Plan. It covers the Pallavaram-Thoraipakkam Radial Road, Mount-Poonamallee High Road and OMR, with a higher floor space index (FSI).

Colliers said GCCs accounted for about 55% of Chennai's office leasing in the first half of 2026.

However, the reports do not indicate uniform gains. Rents in the more established areas of Adyar, Velachery and Mylapore have flattened, The Hindu said.

Asking prices in Sholinganallur

Asking prices on PropertyWala put apartments in Sholinganallur at about ₹6,420 per sq ft (2025 Q3 to 2026 Q3), up 8.2% on the year before.¹ That is about 21.9% below the Chennai average of ₹8,219 per sq ft.

Most listings in the locality are for apartments, followed by residential land and a few independent houses. Projects there include ready and new-launch developments.

The locality is near Tech Mahindra and the Novotel and Ibis hotels. Chennai Metro Phase II is planned to make it a major interchange, Swarajya reported in September 2025.

What to watch

The reports flag the GCC corridor plan and Metro Phase II works as developments to watch for tenant demand along OMR and the Radial Road. Readers can browse the Chennai page for homes to buy or rent.