The enhanced liveability aspect, coupled with the ease of connectivity and amenities, has attracted end-users and tenants alike. Chennai’s appeal as a residential hub is further magnified with infrastructure upgrades like the elevated corridor along East Coast Road (ECR).
Cushman & Wakefield’s Chennai residential Q2 2024 report reveals a rise in average rental value with a Year-on-Year (YOY) increase of up to six percent. So, let’s explore the top localities in Chennai from where you can earn a substantial rental income.
Top areas to earn the highest rental income in Chennai
Proximity to key areas, connectivity, and a quality lifestyle are among the key drivers for the tenants in Chennai. Based on these attributes, 99acres lists the top five areas in Chennai offering high rental income.
Pallavaram
Pallavaram houses several residential projects from renowned builders, such as Olympia Group, TBS Emeralds, Jain Housing, and Radiance Realty. Its proximity to Chennai International Airport (three km) and several employment zones makes Pallavaram one of the best places to live in Chennai.
Some popular commercial zones that are easily reachable from Pallavaram include:
- Embassy Splendid Tech Zone (3 km)
- Chennai One IT SEZ and Velachery (11 km)
- DLF Cybercity, TIDEL Park and T. Nagar (12 km - 15 km)
The area is also near social amenities like schools and recreational areas, adding to its appeal among the tenants. The apartment prices in Pallavaram average around Rs 7,000 per sq ft, appreciating over 16 percent in the last five years (source: 99acres). A 3 BHK flat in Pallavaram ranges between Rs 82 lakh and Rs 1 crore, and its monthly rental hovers around Rs 40,000.
To explore properties in Pallavaram, Chennai, click here.
Koyambedu
Robust road connectivity via National Highway (NH) 4, dedicated metro stations and proximity to the employment zones in Anna Nagar make Koyambedu a highly sought-after residential hub for rent. Tenants also prefer this location due to its centralised location, which makes several landmarks easily accessible.
Some crucial nodes nearby Koyambedu include:
- Ambattur Industrial Estate and Avadi Industrial Estate (5 km)
- DLF Cybercity (9 km)
- IIT Madras (18 km)
- Olympia Tech Park (10 km)
- Raheja Towers (10 km)
The locality is also in close proximity to several schools, hospitals, and markets. Those which are within a three km radius of Koyambedu are mentioned in the table below:
| Schools | Hospitals | Marketplaces |
|---|---|---|
| Apple Valley | Prime Indian Multispeciality | 10 Square Mall |
| Daniel Thomas | Sundaram Medical | CMBT Market |
| Narayana Group of Schools | Robin Hospital | Koyambedu Market |
The average apartment price in Koyambedu is about Rs 9,000 per sq ft and has appreciated over 35 percent in the last five years (source: 99acres). If you want to invest in the locale, a 3 BHK apartment will cost about Rs 1.25 crore to Rs 2 crore. The flat with the same configuration may garner a rent of close to Rs 23,000 per month.
Check out properties in Koyambedu, Chennai, here
Sholinganallur
Sholinganallur offers ample residential options to tenants in a pocket-friendly budget range. For instance, the monthly rent for a 3 BHK apartment in Sholinganallur starts around Rs 32,000, whereas its cost ranges between Rs 84 lakh and Rs 1 crore. With the average apartment price in Sholinganallur hovering around Rs 6,700 per sq ft, the area has witnessed an uptick of over 20 percent in the last five years.
The locality is home to ELCOT SEZ, and IT hubs in Siruseri and Thoraipakkam are less than 10 km away. Also, renowned employment zones such as Chennai One IT SEZ and Velachery are about 7-12 km. Besides pricing, connectivity and availability of social amenities further enhance its appeal as a residential destination among end-users and tenants
Some of the schools, hospitals and markets in and around Sholinganallur include:
| Schools | Hospitals | Marketplaces |
|---|---|---|
| Little Wizdom Preschool | Swaram Hospital | Panchayat Shopping Complex |
| Fathima School | Chettinad Hospital | SP Market |
| Sacred Heart Matriculation School | C DOt Hospital | Sekaran Mall |
To explore properties in Sholinganallur, Chennai, click here
Anna Nagar West
With an impressive 4.4 rating out of five on the 99acres Ratings and Reviews platform, Anna Nagar West is among the best places to live in Chennai. Several schools, marketplaces, and medical facilities within a five-km radius add to its charm as an ideal residential destination. Former and current residents have also cited this in their reviews on Anna Nagar West.
Some of the employment hubs and social amenities close to the locality are:
- Ambattur Industrial Estate (five km)
- T Nagar business hub (nine km)
- Saidapet Industrial Area (10 km)
- Chennai Port (13 km)
- Hive Montessori School, Spring Dales and KLAY School Anna Nagar (two km)
- GMR Hospital, Sri Devi Hospital and Senthil Hospital (two km)
- VR Mall, 10 Square Mall and JJ Complex (three km)
These factors, combined with the metro connectivity, have contributed to the appreciation in property prices by close to 16 percent in the last five years. The average apartment price in Anna Nagar West is around Rs 11,600 per sq ft (source: 99acres). The price for a 3 BHK unit ranges between Rs 1.6 crore and Rs 2.8 crore, garnering a monthly rental of about Rs 40,000.
Check out the properties in Anna Nagar West, Chennai, here.
Padur
Proximity to employment zones and social amenities drive rental demand in Padur. Located along OMR and about two km from Siruseri, one of India's largest IT parks, Padur also enjoys proximity to several landmarks, such as:
- SIPCOT IT Park (5 km)
- Sholinganallur (11 km)
- Thoraipakkam (15 km)
- Sidco Industrial Estate (15 km)
- Perungudi Industrial Estate (20 km)
Residents have praised the proximity to social infrastructure in Padur's reviews. As a result, the average rating is four out of five on the 99acres Ratings and Reviews platform.
Here are the schools, hospitals and markets within a five-km radius of Padur:
| Schools | Hospitals | Marketplaces |
|---|---|---|
| Sri Chaitanya Techno School | Chettinad Super Speciality Hospital | Elsa Plaza |
| i2 Global School | Supreme Speciality Hospital | Mamtha Shopping Mall |
| Gateway International School | Unittas Hospital | Krishna Shopping Mall |
All these factors have made Padur a preferred housing hub among tenants, listing it as one of the top areas in Chennai where rent income can be earned.
The average property price in Padur is around Rs 5,400, comparatively lower than the other localities, Anna Nagar West and Koyambedu (source:99acres). The cost of a 3 BHK apartment in Padur ranges between Rs 57 lakh and Rs 90 lakh, which can earn you a monthly rental of about Rs 27,000.
To explore properties in Padur, Chennai, click here.
In a nutshell, upcoming metro projects, increasing employment avenues and rapidly evolving infrastructure will likely impact the rental real estate market even further. So, if you plan to invest in real estate to earn the highest rental income in Chennai, the localities mentioned above have the potential to offer you good returns. However, you are advised to conduct due diligence before proceeding with your property investment.
