Chennai’s residential rental market has experienced significant volatility in recent years, with prices rising 20-25% over the past two years. Some areas have witnessed steeper hikes with rent upgrades up to 25-30%. Gated communities and modern apartment buildings have also found that the price increase in rents has accelerated, charging 7-8% more than non-ticket peers.
Sanjay Chugh, director and city head of Chennai, has been tracking real estate growth in Chennai for several years, said: “Chennai’s residential rental market has seen a huge increase in the past two years, especially in the mid-sized and Subir Bama areas, with 22% of Chennai Indiannitivity in Chennai having seen a tremendous increase in the third quarter. A quarter of the rupees ranged from Rs 17.94 to Rs 26.91 per square foot.” He added: “The rise in rent prices is attributed to several factors, including a property tax rate hike, the end of a wide range of work arrangements and industrial growth in the city.”
“From 2022 to 2023, the total rental inflation rate in Chennai is 18%. From 2023 to 2024, it is 8%. Abiramapuram, nungambakkkam, t nagar, alwarpet and adyary are the main locations in Chennai, which are the main locations in Chennai. He added: “The regions of OMR such as Tiruvanmiyur, Perungudi and Palavakkam have experienced the highest spikes.” In these areas, rents rose by about 9-11%. ”
Mr Chugh pointed out, Adyar, Anna Nagar, T. Nagar and Besant Nagar – These upscale communities continue to direct premiums due to established infrastructure, educational institutions and lifestyle amenities.
“The overall work conclusions also forced many employees to return to Chennai, increasing the need for rental accommodation near the workplace,” Mr GARG said.
2023, T. Main areas such as Nagar offer 1 BHK (bedroom, hall, kitchen) houses, renting between Rs 8,000 and Rs 12,000 per month. Now, 1bhk rents in the area range from Rs 15,000 to Rs 20,000 per month, excluding parking and maintenance costs. The 2 BHK cost for the Prime location in T.Nagar is between Rs 25,000 and Rs 60,000.
Real estate agent Saravanan said in Vadapalani that the cost of 1bhk ranges from Rs 15,000 to Rs 20,000, while the cost of 2bhk is Rs 30,000. In gated communities, the rent is around Rs 45,000, which is over a hundred thousand. “If you are looking for homes near a metro line or forum shopping center, rents tend to be high. But if you are willing to enter locations like Kodambakkam or the interior area of Vadapalani, you can find more affordable options.”
The property in the old Mahabalipuram Road and Sholinganallur experienced major rental hikes driven by the rising number of students in the area.
A real estate agent in the area mentioned that in the past, students preferred to live on or near university campuses. But, today, many of them choose to rent a single home or apartment with friends. Same as the trends in the Tambaram and Velachery region. The rent for OMR is hovering around Rs 15,000 to Rs 20,000 of 1 bhk, and is now at Rs 18,000 to Rs 30,000 per month.
In Pallavaram, rent value increased by 40%, while capital value increased by 18%, Mr Chugh said. “In Perambur, rental value increased by 33% and capital appreciation was 18%. In Chennai city centre: high-end rental value has remained stable, ranging from Rs 1,00,000 to Rs 2,50,000 per month with the least year-on-year change.” “”The upward trajectory of the Chennai rental market is expected to continue due to ongoing infrastructure projects such as subway expansion and the city’s attractiveness as an IT and industrial hub, especially in the suburbs.” However, given the already high-end pricing, the centrally located high-end segment may see more stable rental value. Apartments witnessed the biggest demands of the occupiers, followed by villas and separate houses. ” he said.
Real estate experts further said prices will only increase when subway and other infrastructure projects in the city are close to completion.
publishing – May 20, 2025, 11:50 pm ist
