Chennai Real Estate: Renting More Preferable to Buying?

In light of the skyrocketing rates of properties in India, the realty market seems to shift gears. An average buyer is now more inclined towards renting a house rater than making a buy. Same is the case with Chennai where this trend is quite noticeable. According to Makaan's Buy Rent Index(MBRI), this city has witnessed a rise in tendencies for hiring properties on rent rather than buying them. Over last two years, MBRI value increased by 7 points, shifting hitherto neutral Chennai real estate market to rental range. A value of more than 25 indicates that renting properties is more preferable than owning a house. While North Chennai MBRI stood at 27, South Chennai's index stood at 28 in the last quarter of 2013.

With more demand for flats for rent in Chennai, the prices have escalated across its several localities. The stock of inventories is limited while the demand is on the higher side; this has resulted in price appreciation of rental home. The space crunch was also brought about by the non- availability of vacant spaces: the rental flats in the city have the tendency to get consumed quickly, thus keeping several tenants in lurch. This, in turn, made the landlords raise rents. Ashok Nagar and Egmore witnessed an appreciation of 13% and 8% respectively over Oct-Dec, 2013.

But there are several Chennai real estate localities where rental rates underwent depreciation in last quarter of 2013. Prices in Besant Nagar, Chromepet, and Chetpet went down by 8-10%, while in Alwarpet and Kilpauk, the rates saw a 3-5% decline if compared to the previous quarter. However, on the whole, Chennai's increased preference for rental properties indicates that people find it more viable to live on rental spaces rather than purchasing their dream home.

Price Brackets for 1 BHK and 2 BHK Rent House in Chennai Properties

Are you living in Chennai and looking for a rent house to live? Or are you soon going to shift to this city and would need rental space to reside? For the seekers of 1 and 2 BHK, the city offers many options. Depending upon the requirements and your budgetary constraints, the prospective tenants are the disposal of several choices to make. This blog post is an effort towards letting them know what options they really have.

Let’s first talk of 1 BHK rent house in Chennai. Across its different regions, the prices vary. So, the tenants with different income brackets can expect to find a rental house as per their needs. The highly affordable options are Pladi, Chromepet, OMR (Old Madras Road), ECR, Porur, Kodambaakam. In these localities of the city, the tenants can look for flats in monthly rental range 2k-5k. Thiryvattiyur and Choolaimedu too offer one BHK rental houses up to 5k and above.

In 6-7k monthly brackets, there are quite a few localities across different parts of Chennai for seekers of one bedroom flats on rent. Kelambakkam, Villivakkam, Ambattur, Porur, Kilkattalai, and Thoraipakaam are a few names worth mentioning in this regard. Chennai properties offers rent houses to the tenants who can pay monthly rental in 7-10k brackets. These are T.Nagar, Valsaravakkam, Perungalathur, Medavakkam, Arumbakkam, Iyyappanthangal, Anna Nagar, and Nanganallur. Chetpet and Thiruvanmiyur offer 1 BHK flats with average rental value of 11-12k.

For tenants with requirements for 2 BHK rental homes, Pallakaranai, Kolathur, Perungudi, and Choolaimedu stand among the best options. The expected rental bracket across these localities is 5-8k/month. In 10-15k range fall Medavakkam, Adyar, Neelangarai, and Palavakkam. Over Thoraipakkam, Palavallam, and Indira Nagar, the rates can vary between 15k and 25k.

Localities in Chennai where 2 BHK Rent Houses are Available under 20k

Chennai, India's tier I city, offers too many options to property-hunters who are keen to live on a rental house. If you are a prospective tenants with a budget of monthly rent up to 20 k or less, you are at the disposal of many options. From a cheap locality like Orgadam to the prime location like Arumbakkam, you will find houses that cater to cheap, budget, and luxury homes. Let's peep into the areas where you can find a 2 BHK rent house in 5k-20k bracket.

If you are on the hunt of some two-room budget rent house in Chennai, you can go for Perungudi, Pallakaranai, Iyyppanthangal, Urapakkam, Vandalore, Sithalapakkam can be the best options. The starting rental prices in these areas are in 5-6k segment. Potheri and Anakapathur are other budget locations. For a little higher bracket, i.e. 7-10k bracket, tenants can choose Perungalathur, Cheomepet, Tambatam, Selaiyur, Avadi, Guduvancheri, Maddipakkam, Pallavaram, and Medavakkam. Chroemepet is a part of Tambaram and has a good connectivity. The well-known GST Road passes through it.

Velachery, a prime residential hub of South Chennai, carries the rental rates in 11-20k bracket. The locality is good if you prefer to live in a IT-driven area. And Velachery has a multitude of such companies. Some of the other areas where 2 BHK Chennai properties come in 11-20k rental range are Adyar, Perumbakkam, Tambaram, OMR, Aminjikarai, Padur, Padi, and Sholinganallur. Porur has 3 prominent SEZs and several IT Parks. You will find several tech companies like IBM, Cognizant, iGate, and others. Arumbakkam is yet another prime residential area where several IT companies have forayed. 2 BHK rent houses in Kilpauk and Mehta Nagar fall in the 12-15k segment.

The Available Options in Chennai for a One BHK Rent House

Propensity of IT companies in Chennai has remained a positive factor for the growth of its realty market. It is not only a budget-minded buyer who prefers to live on rental spaces, there is a good number of professionals who arrive here to seek job opportunities. So, Chennai is constantly in need of rental properties, irrespective of the fact how the realty market is faring in a particular year. At present, the Indian economy is in the clutches of inflation as well as economic slump and as a result, the demand for properties is down in dumps. But the demand market for rental houses has not gone down. In this blog, we are going to have a glimpse over some of the good options for a 1 BHK rental house in different localities in Chennai.

Let's us consider a two-room Independent house for our consideration. Though the number of options are too many, yet a 2 BHK rent house in Chennai can be located in certain specific localities only. For the seekers of a rental property with monthly budget in price bracket 5-7k, Pallikaranai and Sithalapakkam are good choices. For 8-10k bracket, the suitable areas are Kundarathar, Kolathai, Medavakkam, Pattabiram, Madambakkam, Ramapuram, Thiruverkadu, Madipakkam, and Mugalivakkam.

 

In the higher bracket, i.e. 11-15k, the 2 BHK rental properties for real estate in Chennai in the form of an independent house are available in Aminjikarai, Mint Street, Korttur, Choolaimedu, Kodambakam, Porur, New Perungalathur, Iyyappanthangal, and Kovilambakkam. Most of these are prime locations and have well-established IT base. For example, Porur, Choolaimedu, and Aminjikarai have a set of software companies. Some of the best tech-giants of the country have opened their bases in these colonies. Accordingly, the Independent houses developed here mostly cater to the well-earning income segments. Most of the properties are top-class that are fully-furnished and are enthused with all the modern amenities.

The Price Tags for a Two-Room House for Rent in Different Regions of Chennai

The tier-1 cities in India like Delhi, Mumbai, Chennai, Hyderabad, and others see a fairly high demand for rental homes. For Chennai, that sees a good number of expatriates from North, the rental properties play a vital role in catering to the high housing demand. The city, like other metros, has variable price brackets applicable in its different parts. The central region, for example, carries high price tags, while the rate is lower at peripheral localities. The amount of rent is directly proportional to the location of the house, its state of furnishing, amenities offered, and employment opportunities. We are going to have a look at the rates for two-room rental apartments in the city.

We start from city center of the city. A house for rent in Chennai in central region can come at a rate anywhere between 12-25k. For prices between the rental range 12-15k(starting rates), options like Koyembedu, Nelson Manickam Road, Choolaimedu, Aminjikarai, Arumbakkam, and Chetpet can be good choices. The localities including Triplicane, P.H. Road, and Shenoy Nagar are pricey: for a 2 BHK apartment on rent, a tenant requires to pay in 18-25k, and even above.

 

Shifting your focus to North,it has some of the high-end localities that have well-developed IT infrastructure and stronghold over corporate sector. At Kolathur, Avadi, Pattabiram, Thirumalla Voil, the monthly rentals are usually below 10k. For a real estate Chennai property that comes at rentals more than that, Mint Street, Anna Nagar, Kilpauk, Korttur, and Mugappair are a few names that fit in.

South Chennai has a plethora of options for the seekers of 2 BHKs. Medavakkam, Oragadam, Kelabakkam, Pallavaram, Guduvancheri, Madambakkam, Porur, Pallikaranai, and Madipakkam are a few names where one can find affordable houses on rent. For the tenants who want a 2 BHK below 10k/month, these can be the perfect choices.

Makaan.com, India's fastest growing property website, lets you buy, sell, or rent a real estate Chennai, Bangalore, and other parts of the country. Look for a house for rent in Chennai in different localities across different price brackets.

Rates of Three-Room Houses on Rent in Chennai

Chennai, like many other cosmopolitan cities, has a strong foothold over IT sector. Several premiere real estate developers have ventured into the city with their residential and commercial projects. The presence of infrastructural development and employment opportunities call for high demand for properties. And as far as rental spaces are concerned, they too remain high on demand. The middle-segment buyers and the professional relocated from other cities comprise a big chunk of this demand. Rental houses are mostly affordable and offer a living space to those who don't have a residential property of their own. Let's see what 3 BHK rental apartments cost in different parts of the city.

For the tenants for whom money is a big issue, can look for a house for rent in Chennai in areas like Adyar, Numgambakkam, and Kelmabakkam. The average monthly rentals in these localities can be as low as 4-7k, though houses with higher rates too are available for hiring. In 8-12k range, there are far more options: Ramapuram, Sholinganallur, Velachery, Perungudi, Perumbakkam, Porur, Guduvancheri, Ambattur, Chromepet, and Avadi. Such a rental range is mostly preferred by middle-segment tenants.

 

Mogappair, A. Nagar, Vadapalani, and Tambaram have high price tags. Micro-markets like Saligramam, Kavalur, OMR, Arumbakkam, and Keelkattalai too fall in this category. As most of these are IT-driven societies, the rental rates here can go up to 20-25k, and even above. Then come those araes of Chennai properties that cater to the requirements of the affluent class. Three-bedroom, well furnished houses are readily available in prime localities like T. Nagar, Abhiramauram, Kotturpuram, Mint street, Kottivakam, and K. K. Nagar. The others like Poes Garden, Boat Club, and Akkarai too have heavy rentals: 1-3 lacs!!. Their strategic location, presence of high-end flats, amenities offered, and presence of software industry award them much significance.

Look for a house for rent in Chennai over the premier property portal, Makaan.com. Keep yourself apprised with price trends in different quarters of the year. Buy, sell, and rent residential and commercial properties for real estate Chennai.

Houses for Rent in Chennai: What Options do you have?

Like other metropolitan cities, real estate has proliferated in Chennai too in a last few decades. With an ever-increasing population, the demand for property never seems to cease. Searching for a house for rent in Chennai is what more people now look forward to, the reason being that it is a more feasible option in terms of price. Instead of buying a house of one's own which, of course, involves investing a pretty good sum of money over a long period, opting for a rent house is a much better idea. You don't need to have a hefty sum at your disposal: just manage to save a few bucks from your income and keep them aside to pay your rent.

For people who prefer to live houses for rent in Chennai, there are many choices that can be made. There are several property sites where you can search the type of house you are looking for. Select the location first and decide upon your budget that you are willing to spend month after month. These twin factors of considerable importance are the deciding factors and influence your decision to choose apartments for rent in the city.

The other factors that affect a buyer's choice include the plot area, the number of rooms, and the deposit amount. While making a search for the rental houses in Chennai, keep the area per square feet into consideration. The online portals provide users with availability of houses with area as small as a single room and as big as five bedrooms or more than that!

Again, before you make up your mind to buy flats on rental basis in Chennai, you need to single out the state of furnishing that you would prefer to live in. Go for the unfurnished ones if your budget is really low. Otherwise, opt for the semi-furnished or the fully-furnished ones. As you do an online search, you would find that the prices of the later two is significantly higher if compared to the earlier one. The homes with nice decors assign a charm to your living space, so opt for them if money is not the constraint on your pockets. You can either rent a room or two, or an entire house can be hired.

And there is no dearth of modern day amenities that come with suave. Facilities like hot water, inverter, internet, modular kitchens, road connectivity, intercom, rainwater harvesting, laundry services, to name a few are readily available to the buyers. For those who are astro-inclined, rooms compliant to Vaastu are also available. Other than individual rooms or houses, you can buy rent villas, farm houses, studio apartments, or even a plot or land.

On the similar grounds,there are a dearth of options available to sellers who want to rent their houses to the buyers. They can advertise the same via online property portals and get a broader exposure for their ads in terms of number of buyers responding.

To search rental houses available for buying and selling property in Chennai and other cities, you can visit the site: Makaan.com, the online property portal.