Rental Income Property for Sale in Chennai

Are you looking to develop a steady income stream? Then, investing in a second property in Chennai is an ideal option. What makes it ideal is Chennai's booming economy, major IT hubs, and a vast number of employment opportunities that attract people from corners of the world to come to the city. But finding the right rental income property for sale in Chennai can be tough. 

That is where this article comes in. This article will explore the top 10 rental income properties for sale in Chennai and the factors that affect them in detail.

A Brief Overview

Chennai, the capital city of Tamil Nadu, is a hub of various cities and districts offering a range of properties with different rental rates. Here is a table below that gives an overview of the various locations and their rental rates. 

Locality	Rental Range
Adyar	₹5,000 - ₹1.5 Lakhs
Anna Nagar	₹6,600 - ₹80,000
Besant Nagar	₹24,650 - ₹97,000
Kotturpuram	₹29,500 - ₹1.8 Lakhs
Mylapore	₹7,250 - ₹1 Lakhs
Nungambakkam	₹13,000 - ₹2.2 Lakhs
RA Puram	₹37,600 - ₹1.1 Lakhs
Thiruvanmiyur	₹17,400 - ₹67,000

Top 10 Locality in Chennai for Rental Income Property

To make an informed decision, it's crucial to identify the right localities with high rental demand. Some of them are:

1. Adyar

Adyar lies in the south of Chennai, India, near the Adyar River. It is surrounded by localities like Tharamani, Thiruvanmiyur, Besant Nagar, Kotturpuram, and Raja Annamalai Puram. Getting around in Adyar is easy. Even though it doesn’t have a metro station, the nearest one is Little Mount. There are also three local train stations in Adyar, namely Kasturbai Nagar, Indira Nagar, and Thiruvanmiyur. You can also use the buses that ply in and out of the locality. 

Adyar offers a well-developed social infrastructure. It’s close to big workplaces like DLF Cyber City, Guindy Industrial Estate, Velachery, RMZ Millennia SEZ, and Tharamani. There are also many schools like Shiv Nadar School and Chennai High School. The area also has hospitals such as Fortis Malar Sri Padmapriya Hospital and shopping centres like DP TowerHive and Adyar Shopping Point.

The average price per square foot in Adyar is ₹15,013. The most expensive property is listed at ₹35,000 per square foot. Over the last year, property prices in Adyar have increased by 8.3%. When it comes to types of properties, Adyar has various sizes of properties.

Most of them are flats, but there are also some houses.  Most of the flats have 2 or 3 bedrooms. On average, a property in Adyar costs ₹4.12 crores. But, you can find properties from ₹12.29 lakhs up to ₹35.73 crore.

Some of the best things about Adyar are its location near big workplaces, the variety of properties, and the nearby facilities. The Gandhi Nagar part of Adyar is one of the fanciest localities in Chennai. So, this makes it the best location to invest in a second property.

2. Anna Nagar

Anna Nagar is situated in northwest Chennai. Well-known places like Villivakkam, Kilpauk, Ayanavaram, Arumbakkam, and Koyambedu surround it. The area is famous for its broad streets, sidewalks, and green spaces.  The locality is also home to several celebrities and famous personalities from the city.

The area has excellent connectivity with the availability of various transport options. Anna Nagar has three underground metro stations, two in Anna Nagar and one in Anna Nagar East, which are part of the Phase 1 metro station. The closest metro stations are Anna Nagar East Metro Station and Anna Nagar Tower Metro Station. The closest railway stations are Korattur, Perambur Locomotive Works, and Villivakkam.

Anna Nagar is known for its social and retail facilities. It has a well-developed social structure with civic facilities such as schools like Leo Academy School Of Excellence, CPS Global School and hospitals like KHM Hospital and Jaya Multispeciality Hospital. The area is also near Ambattur Industrial Estate, Padi Industrial Estate, and SIDCO Industrial Estate work hubs.

Anna Nagar is recognised for its well-constructed bungalows, standalone houses, and apartment buildings. The average price of properties in Anna Nagar is ₹15,579 per sqft and the price ranges between ₹7,272 - ₹36,111. The most common property type available for sale is the 3 BHK flat, which makes up about 53% of all properties for sale. 

3. Besant Nagar

Besant Nagar is a high-end residential area in South Chennai. The Bay of Bengal is located in it. The area is home to many wealthy people and has many high-end restaurants, cafes, and shops. The main attraction of Besant Nagar is Elliot's Beach, which is named after Edward Elliot, a former Governor of Madras. This beach is a favourite spot for both kids and adults because of its beautiful scenery and atmosphere.

Areas including Adyar, Taramani, Guindy, Palavakkam, Madipakkam, and Velachery surround Besant Nagar. The area has good local transportation links, making travelling to other parts of Chennai easy. 85 buses ply from the Besant Nagar bus station daily to make 500 trips.  The closest metro and railway stations to Besant Nagar are Indira Nagar Railway Station, Tiruvanmiyur Railway Station, Nandanam Metro Station, and Teynampet Metro Station. 

Besant Nagar has excellent social infrastructure. Schools in this area include the Besant, St. John's English School and Junior College, Besant LVR Matriculation School and hospitals like Santosh Hospitals and RR Clinic. The area also has malls like Lakshmi Complex and 5Th Avenue.

The average price of properties in Besant Nagar is ₹20,223 per sqft. The starting price of properties in Besant Nagar is ₹10,000 per sqft. The most expensive property listed in Besant Nagar is ₹ 56,666 per sqft. Property rates in Besant Nagar have seen an 18.69% rise in the last 1 year. 

When it comes to the types of properties available in Besant Nagar, flats make up the majority, accounting for 78.57% of the properties on sale, while houses constitute the remaining 21.43%. The majority of properties in Besant Nagar are priced above ₹5 crores, although there are some options available between ₹2.2 crores - ₹2.4 crores. Three-bedroom apartments, or 3 BHKs, are the most common unit type in this locality, representing approximately 66% of all properties for sale.

4. Kotturpuram

Kotturpuram, or Kottur, is a well-known residential area in Chennai. It’s located on the south side of the Adyar River. The locality shares its border with Nandanam, IIT Chennai, and Guindy. The area has good transport links, including buses and trains. The Kotturpuram Bridge provides a connection across the Adyar River.

The closest metro station is the Nandanam Metro Station. Nearby railway stations include Kasturibai Nagar, Greenways Road, Indira Nagar, Mandaveli, Thirumayilai, Tiruvanmiyur, Saidapet, Mundaka Kanni Amman Koil, Mambalam, and Guindy. 

Kotturpuram has excellent social facilities. It has famous temples like Perumal Koil and schools such as Unity Public School and St. Mary's Matriculation Higher Secondary School. The area also has hospitals like Apollo Medical Centre and Aakash Multispeciality Hospital.

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The property prices start at around ₹7,391 per sqft, with an average price of ₹14,413 per sqft. The average price per square foot in Kotturpuram is ₹14,435. Prices range from ₹7,391 to ₹20,000 per square foot.

You can find different types of properties, from flats to houses and plots.  The most common property type is 3 BHK, which makes up about 48% of all properties for sale.  Additionally, the Miyawaki forest in the city centre along the Canal Banks, which was once a garbage dump, has been transformed into a green space. This green space makes Kotturpuram an attractive place to live.

5. Mylapore

Mylapore, or Thirumayilai, is a central neighbourhood in Chennai. It's one of the city's oldest residential areas. It is known as the birthplace of the famous Tamil philosopher Valluvar and the Hindu saint Peyalvar.  The area is surrounded by Alwarpet, T. Nagar, Nungambakkam, Kodambakkam, and Teynampet. 

Getting in and around Mylapore is accessible by train, bus, or taxi. The Teynampet, AG DMS, Thousand Lights, LIC, Nandanam, and Government Estate are the closest metro stations. The nearest railway station is Thirumayilai MRTS Station.

Mylapore has a solid social infrastructure with many schools and hospitals like St. Isabel's Hospital, C.S.I. Kalyani Multispeciality Hospital and Chennai Meenakshi Multispeciality Hospital. Notable schools in the area include Don Bosco High School and Vidya Mandir Senior Secondary School

Mylapore's average cost per square foot is ₹15,412, with property prices ranging between ₹12,100 - ₹19,400 per sqft.  Properties for sale range from ₹80 lakhs to ₹1.50 crores. About 73% of properties in Mylapore are apartments, and 25% are houses. The available units include 1 RK, 1 BHK, and 4 BHK.

The area is lively and hosts the Mylapore festival every January, which includes more than 30 cultural events. The area is home to ancient temples and the most famous Kapaleeshwarar Temple, making it a place where tradition and modernity coexist.

6. Nungambakkam

Nungambakkam is a well-off area in Chennai. It’s located on the southeast coast of India, in the northeast part of Tamil Nadu. The area is close to Nungambakkam, Chetpet, T. Nagar, Kodambakkam, and Choolaimedu. It’s a busy area with lots of businesses and entertainment.

The Chennai International Airport is about 15 Km away from the locality. The closest metro stations are Thousand Lights Metro Station, AG DMS Metro Station, and Pachaiyappa College Metro Station. The Nungambakkam Railway Station is also close by.

Nungambakkam has many schools and hospitals. Padma Seshadri and St. Joseph International School are some schools. Hospitals such as Vinita Hospital and MedIndia Hospital provide healthcare services. There are also shopping centres like Kaveri Complex and Nilgiris. 

The residential properties are priced between ₹13,900 - ₹22,400 per sqft, and the average cost per square foot in Nungambakkam is about ₹19,000. The properties are priced between ₹1.64 crores - ₹10.65 crores.

In Nungambakkam, the market is primarily composed of high-end projects, with a focus on apartment and villa properties. The available residential units encompass a variety of configurations, including 1 BHK, 2 BHK, 3 BHK, and 4 BHK apartments.

7. RA Puram

Raja Annamalai Puram, also known as R A Puram, is a growing area for both residential and commercial purposes. It is located in the heart of Chennai city in Tamil Nadu. The area is near the Adyar River and the coast of the Bay of Bengal, making it a peaceful residential neighbourhood.  RA Puram is surrounded by Trustpakkam, Mandaveli, Abiramapuram, MRC Nagar, and Kesavaperumalpuram.

The area is well-serviced by various modes of transport, such as trains and buses. It is about 13.5 km from the Chennai International Airport and 8.5 km from the Central Railway Station. Nearby metro stations include Teynampet Metro Station (1.8 KM), Nandanam Metro Station (2.1 KM), AG DMS Metro Station (2.2 KM), and Thousand Lights Metro Station (3.3 KM). Greenways Road MRTS Station and Wimco Nagar Railway Station are the closest railway stations.

R A Puram boasts a strong social infrastructure with numerous schools and hospitals. Educational institutions such as PV Rao School and PS Matriculation School are in the area. Renowned hospitals like Billroth Hospital and Andra Saba Hospital serve the community. For shopping enthusiasts, several malls and shopping centres include Raj Shopping Centre, Ramee Mall, and Chennai Citi Centre.

R A Puram's average cost per square foot is approximately ₹16,450. The range of property prices varies significantly, with the starting price being around ₹4,315 per sqft and the average price being around ₹19,405 per sqft. Over the last year, property rates in R A Puram have increased by 0.74%. 

The real estate in RA Puram comprises various properties, from villas and independent floors to apartments. The prices for these properties vary widely. The prices of  1 BHK property can cost from ₹ 55 lakhs, 2 BHK ranges from ₹ 50 lakhs to ₹ 1.55 crores, 3 BHK is priced between ₹ 1.8 crores to ₹ 6.5 crores, and a 4 BHK can cost from ₹ 1.95 crores to ₹ 8.5 crores. 

8. Thiruvanmiyur

Thiruvanmiyur is a primarily residential area located in the southern part of Chennai. It is recognised for its peaceful surroundings, attractive beaches, and lively shopping centres. The locality is bordered by several neighbourhoods, such as Adyar, Tharamani, Nehru Nagar, Kaveri Nagar, Karim Nagar, Perungudi, Kodandarama Nagar, Lakshmi Nagar, and Mahatma Gandhi Nagar.

The area enjoys excellent connectivity to nearby cities like Chennai, Ambattur, Nandivaram-Guduvancheri, and Thirunindravur through the Rajiv Gandhi Expressway, ECR, and OMR. The nearest stations to Thiruvanmiyur are Thiruvanmiyur, Marudeeswarar Temple, and Thiruvanmiyur Depot. The nearest metro station is Taramani Link Road Metro.

Thiruvanmiyur also boasts several schools, hospitals, and malls. Notable schools include Sri Sankara Vidyashramam Matriculation Higher Secondary School and  Besant Arundale Senior Secondary School. For healthcare, Thiruvanmiyur is home to several hospitals, such as Dr MCN Memorial Multi Speciality Centre and Hale and Healthy Hospitals. Popular shopping destinations include Chandra Complex.

The starting price of properties in Thiruvanmiyur is ₹5,357 per sqft, and the average price is ₹13,854 per sqft. The most expensive property listed in Thiruvanmiyur is ₹41,666 per sqft. The property prices in Thiruvanmiyur have risen 3.01% in the last 1 year. Property prices skyrocketed by a significant 18% from 2015 to 2023.

The types of properties in Thiruvanmiyur mainly consist of multistorey apartments and flats. These flats come in various configurations, including fully furnished, semi-furnished, and owner flats. Its proximity to Taramani's Tidel Information Technology Park and beautiful beaches make it an attractive investment destination.

Factors Affecting the Rent of a Locality

Several factors can affect the rent in a locality in Chennai that you must know before choosing a locality. Some of them are:

1. Proximity to Leisure and Recreation Facilities

Properties close to parks, film theatres, shopping malls, restaurants, and other leisure and recreation facilities are often more desirable. These amenities offer convenience and offer better quality of life to tenants, which leads to higher rents.

2. Future Development Plans

If there are plans for future development in the area, such as new commercial complexes or infrastructure projects, these can influence rental rates.

3. Population Growth

Areas experiencing rapid population growth can see an increase in rental rates due to increased demand for housing. This is because as more people move to an area, the increased demand can drive up rents, particularly if the housing supply cannot keep up.

4. Quality of the Neighbourhood  

The perceived safety, cleanliness, and overall appeal of a neighbourhood can significantly impact rental rates. Areas with low crime rates, clean streets, and a strong sense of community are often more desirable, leading to higher rents.

5. Age of the Property

Newer properties often command higher rents due to modern construction, better amenities, and fewer maintenance issues. Older properties, while they may have lower rents, might require more maintenance and not offer the same level of comfort or style as newer ones.

Conclusion

Investing in rental income property for sale in Chennai can be a profitable activity, particularly in the areas discussed above. These locations have a high demand for rentals due to facilities and well-developed infrastructure. 

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And if you’re renting your property to someone, NoBroker simplifies the process by assisting with rental agreements and paperwork. So, if you need any property-related solutions, then reach out to us today!

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