Top Localities in Chennai That Will Continue To Grow In 2023

Top Localities in Chennai for Investment to Grow in 2023

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Admin 30 Apr 2024 5,415 Views

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Chennai is a popular spot for the purpose of real estate investment. Since Chennai is an industrialist area and is observing swift development, the rate of purchasing well-furnished flats, bungalows, rented homes, etc. is increasing day by day. Before investing their hard-earned money, an investor has several questions in his mind. They consider numerous factors like in which area should they buy a house. Moreover, they also doubt whether they took the right decision in buying the property in a particular locality. This blog will suggest to its readers the popular localities to invest in Chennai and the essential features of real estate investment.

Demand for Residential Property: A Boom for Locals- As mentioned above, Chennai is an industrialist hub. Hence, several individuals visit Chennai to secure decent and high-paying jobs. Some people prefer to rent a home in Chennai and some choose to buy an individual house. Earlier, people used to take the suggestion of brokers and the locals residing in the area. However, in modern times, relying on Internet sources and online applications is the most convenient way to buy a house. Hence, an adequate knowledge of using online portals and social media can help the locals to increase their business.

Trending Localities to Invest in Chennai

As the need for lodging facilities rise in Chennai, certain localities are considered best for investment purposes. There are several residential properties in Chennai, ranging from 1 BHK to 3 BHKs in some popular regions like Mylapore, Alwarpet, Kodambakkam, etc. Some of the best localities to invest in Chennai include:

Sholinganallur- Sholinganallur is regarded as one of the best localities to invest in Chennai. Several reputed educational institutes like JS Global School are located in this spot. Moreover, there is a provision of excellent medical aid at a reasonable cost and recreational activities. As the IT Sector expands in Chennai, Sholinganallur has become a popular spot for software development companies. Furthermore, commuting to the workplace becomes easy for the workers due to the excellent transportation facilities. You can expect higher returns if you invest in Sholinganallur. Several house for sale in Chennai are available at Sholinganallur due to the aforementioned factors.
Tambaram- Tambaram, which is the oldest city in Chennai is recognized as the most rapidly developing area in Chennai. This destination is highly popular since it is very near to the Chennai International Airport. Moreover, the distance between Tambaram and OMR by road is around 12 Kilometers. Another reason for its popularity is the presence of the most renowned educational institutes and excellent medical aid at an affordable rate. Tambaram has all the amenities an individual can ask for at a reasonable rate. The monthly expenses at Tambaram are not more than 15,000 INR. Hence, Tambaram is the best area to buy in Chennai.

Velachery- Velachery is one of the best places to invest in Chennai. It is famous since it is located close to important IT Hubs like DLF IT Park and IT Park. It is easy to make a commute to the other parts of the city because of the excellent transportation facilities. Moreover, the education imparted in the schools in Velachery is of topmost quality. Alongside this, the highly-qualified healthcare experts provide immediate and excellent medical aid. This destination is apt for those who are planning to buy houses in Chennai for the long term at a reasonable rate.
OMR- Old Mahabalipuram Road is one of the most popular areas in the city. It is situated close to several IT hubs. It occupies a significant position in the rental market. Since it is one of the busiest places in Chennai, it has good transportation facilities. Hence, it is easier for those who work in the IT sphere. Purchasing properties in Chennai is very expensive compared to other localities in Chennai. However, the availability of exclusive amenities in this locality is worth it. Moreover, it is expected that the price of residential and commercial properties will rise in the upcoming days. It is an ideal spot for 3BHK Apartments and ranges up to 25,000 INR per month.
Porur- Porur is another locality in Chennai which is the most developing area in Chennai. It is the most renowned spot in Chennai. It is famous since it is situated close to the most prominent educational institutes and IT Industries in Porur. It also holds a significant rank in the rental market. The only drawback of buying a property in Porur is that it can be expensive. It is an ideal spot for 2 BHK and 3 BHK Apartments. The minimum expense required for livelihood in the Porur locality is around 18,000 INR per month. Porur is the best place for IT workers to rent a home in Chennai.

Essential Features of the Best Real Estate Investment

Investing in properties in Chennai is a good idea to increase financial gains. However, before investing, you need to consider the following aspects. If you do not consider all the factors, you may incur losses.

Location- Location is a key factor when investing in properties. It is essential to choose an ideal location for the inhabitants. It depends on what type of inhabitants you want to captivate. For instance, those who aspire to reside with their family would like to have a school in the nearby area. The amenities present near the property determine how successful an investment would be. If you cannot provide the amenities the inhabitants require, you should not charge much. You should also consider the future plans of the state government to improve the existing infrastructure. If you invest in a project which does not have any scope for development in the future, you may be at a loss.
Purchase Value- While determining the purchase value, your focus should not only be on how much can you invest in a property. You should not forget that your goal is to acquire financial gain. Distinguishing between the purchase value and intrinsic value can be helpful. Intrinsic value means the actual value of the property. It is determined by several factors like growth potential and revenue. The purchase value is the sum you paid to buy the property. You must conduct thorough research to determine the intrinsic value of a property. The intrinsic value should not be more than the purchase value of the property. You should search for those properties on sale which cost less than their actual worth.
Low Maintenance- The biggest mistake while purchasing a property is buying it without knowing about the supplemental cost involved after buying it. For investors, it is much more than the legal fees and mortgage. It is impossible to attract the inhabitants if the property is not well-maintained. Moreover, the inhabitants will spread negative comments complaining about not providing good service to the clients. In such circumstances, you cannot generate profit. If you buy luxurious properties, you need to pay additional costs for their maintenance. It is costly and reduces your profit margin. Low maintenance means a property that does not charge you extra for maintenance problems. Hence, before buying a property you must ensure that it is fully furnished and does not face regular issues.
Do not depend on Short-Term Economic Boost- The existence of local industry results in the expansion of property. It occurred in Western Australia when an expansion in the mining industry was observed. Individuals commuted in bulk to Western Australia to search for employment opportunities. During that phase, both investors and sellers observed the expansion of their business. However, soon the boom ended and so did the hopes of the individuals. Individuals left Western Australia, which reduced the demand for property. The investors had to reduce the rent, and as a result, they incurred losses. Hence, you should not invest in property looking at short-term economic expansion.

Building depreciates while Land appreciates- You must consider the ratio of building to land while purchasing a property. You must remember that the value of land increases over time. However, the building needs repair work and a decrease in value. The scarcity of land results in the price of property increasing. This is a key factor you should consider while investing in property.

Socio-Economic Trends- Intergenerational families staying together are constantly rising in contemporary times. Individuals stay longer, tie the knot later, and observe a rise in divorce cases. It signifies that staying in bungalows and apartments can be the choice of the inhabitants in the forthcoming days.
Crime Rate- You must check the crime rate in the locality you prefer to buy a house. The rent of the areas with high crime rates is low. It can increase the threats of robbery and maintenance on the property.
Investment Horizon and Investment Purpose- If the investment is mortgaged, it may lead to a financial crisis if there is no preciseness on the intent of investment. You must categorize which of the following is ideal for you:
Buy and Lease- It provides a rise in the value of the property and constant earning opportunities. However, the personality should be like that of a landlord- efficiency in handling contestation and legal issues, maintenance work, etc.
Buy and self-use- It is a good idea since here you get a chance to economize on rent. Moreover, you can use the property for your personal use. Alongside this, you will receive value appreciation on a timely basis.

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Conclusion

Chennai is a popular hub for real estate investment in modern times. Since Chennai is an industrialist area, the cost of purchasing bungalows, independent houses, and flats for sale in Chennai is high. Sholinganallur, Tambaram, Velachery, etc are some of the best localities to invest in Chennai. Tambaram is the best area to buy in Chennai. Velachery is a perfect spot for those who are planning to buy houses in Chennai at an affordable cost. OMR is one of the most popular areas in the city. Some of the primary factors while investing in properties are location, purchase value, crime rate, etc.

Chennai is an industrial area that has observed a swift transformation in contemporary times. It is a popular spot because several important IT industries are present in it. Since the need for lodging is rising, several spots like OMR, Velachery, Sholinganallur, etc. are considered the best localities to invest in Chennai. If you are looking for an affordable house for sale in Chennai, Velachery is the best option. OMR is one of the most popular areas in the city due to the facilities it offers. Before investing in properties in Chennai, you should keep in mind the primary factors like location, purchase value, crime rate, etc.

FAQs

Q. What are some of the trending localities to invest in Chennai?

Some of the trending localities to invest in Chennai are Velachery, Sholinganallur, Tambaram, Old Mahabalipuram Road, Porur, etc.

Q. Name some of the top-rated localities in Chennai?

Some top-rated localities in Chennai include Gopalpuram, Velachery, Besant Nagar, etc.

Q. What are the merits of investing in Chennai?

A. Some reasons for which investing in Chennai is considered beneficial include excellent employment opportunities, reasonable cost of properties, good infrastructure and connectivity, etc.

About Author

Jatin Dubey

An enthusiastic content writer who is a law graduate and has been working as Real Estate Consultant for around 9 years.
He has worked with top Real Estate Agencies and Builders in Delhi, Bangalore and Pune. His skills to perform market analysis and explore high potential localities has helped many clients in the past.

Top Localities in Chennai for Investment to Grow in 2023

Trending Localities to Invest in Chennai

Essential Features of the Best Real Estate Investment

Conclusion

FAQs

Jatin Dubey

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