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Rental Insights: Chennai Q4-2015

Chennai, the capital of the state of Tamil Nadu is also known as the capital of tradition and culture. A mixture of old and new practices, Chennai, also became an important centre for trade between India and Europe with the development of a harbour in 18th century.

Since then, Chennai has been a ‘city of firsts’ in many concepts and implementations, such as: Being the first city in India to have implemented the conditional access system for cable television and the first city to have widespread Wi-Fi facility and the like.

This fourth most populous metropolitan city has also developed as a hub of real estate with programmes by the Government to improve infrastructural projects. The rental market of Chennai has seen some ups and downs in the recent years and this article provides you some valuable inputs about rental market of Chennai.

1 BHK in Chennai

 

In this vast city, there is a lot of demand for 1 bhk's in localities like Sholinganallur, Old Mahabalipuram road, Porur followed by Kelambakam, Velachery, Medavakam among others. Being an old city with an average price of ₹7,500 for 1 bhk's, there are a lot of options to look at in terms of various luxury segment properties with prices spread over a large range in areas like Old Mahabalipuram road, Porur, Adyar. In these areas, while the spread is lot, there are substantial chunk of properties at the high end of price spectrum as maximum price levels (upper quartile limits) in the plot ranges from ~ ₹13,500 in Porur to ~₹16,000 in Adyar with median values lying at ₹12,000 in Porur to around ₹15,000 in Adyar. Home seekers looking for budget or affordable properties can look in Kelambakkam, Medavakkam where average rates are around ₹6,500.

AreaArea Rent (median)City Rent (median)Area vs City% Listings above City Median Rent
Sholinganallur8250750010%43%
Old Mahabalipuram Road800075006.7%50%
Porur12000750060%67%
Kelambakkam62507500-16.7%14%
Velachery10000750033.3%100%
Medavakkam65007500-13.3%33%
Adyar150007500100%100%
Thiruvanmiyur10000750033.3%0%
Chromepet11000750046.7%67%
Perungudi13000750073.3%100%

2 BHK in Chennai

 

The home seeking population looking for 2 bhk's mostly looks in areas like Old Mahabalipuram road, Thoraipakkam, Sholinganallur followed by Velachery, Perugundi. In this segment most of the localities are placed around and slightly above the city average (median: ₹12,000) with a lot of price variation seen in localities like Sholinganallur, Velachery, Perugundi and Chromepet. There would be varying levels of sophistication available in this areas well suited for residents preferring localities over rates. Looking at the affordable properties locations, areas like Chromepet, Medavakkam and Pallikaranai are priced close to the city rental values.

AreaArea Rent (median)City Rent (median)Area vs City% Listings above City Median Rent
Old Mahabalipuram Road150001200025%70%
Thoraipakkam150001200025%85%
Sholinganallur160001200033.3%74%
Velachery165001200037.5%85%
Perungudi150001200025%75%
Chromepet950012000-20.8%12%
Medavakkam12000120000%47%
Pallikaranai12000120000%35%
Valasaravakkam12000120000%48%
Porur12000120000%49%

3 BHK in Chennai

 

When users search for 3 bhk's to rent, they mostly prefer regions like Old Mahabalipuram road, Pudupakkam, Thoraipakkam, Velachery. Almost all the top localities have their price trends in line with the city averages (median: ₹18,000). Looking from the budget standpoint, with not much of a variation, one can consider Pudupakkam, Pallikaranai, Medavakkam over others just on the point of being relatively lesser priced over other regions. Looking at the price range variations, there are many options in areas like Thoraipakkam, Velachery followed by Sholinganallur.

AreaArea Rent (median)City Rent (median)Area vs City% Listings above City Median Rent
Old Mahabalipuram Road200001800011.1%54%
Pudupakkam850018000-52.8%0%
Thoraipakkam255001800041.7%84%
Velachery240001800033.3%79%
Sholinganallur220001800022.2%76%
Porur200001800011.1%65%
Pallikaranai1500018000-16.7%17%
Medavakkam1500018000-16.7%10%
Padur18000180000%41%
Saligramam270001800050%85%

Ask any renter in Chennai and they’ll tell you that the rents are too damn high. Sadly, they aren’t exaggerating. Buying a home in Chennai is not cheap. Renting particularly in expensive neighborhoods that are close to a city center, is not cheap either. Affordable housing in both the for-sale and rental markets has become incredibly scarce in desirable neighborhoods in urban centers. So what’s a renter to do?

Is it time to implement rent control measures like New York and San Francisco cities?

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