Top 10 Best Real Estate Investment Places In Chennai

Top 10 Best Real Estate Investment Places In Chennai
  • Chennai has expanded far & wide with new land additions.
  • An investor should be very careful in making investments in the lands.
  • The focus on long-term yields while investing in Real Estate very essential.
  • The condition of the market & demands plays a significant role in the real estate business.
  • The return on investment is a major factor in determining the profitability of real estate investment.
  • Generally, the return on investment is very high in commercial properties.
  • If we are very particular about stable income, then rental properties are highly profitable.  
  • proper care has to be taken to avoid wrong investments 

Essential Features Of The Best Real Estate Investment

● Good Location
● Purchase Price
● Small Flaws
● Low Maintenance Cost & Care
● Good Rent-to-price Ratio
● Low Vacancy Rates
● Long-term Appeal
● Fast Turnaround From Purchase To Renting
● Multiple Industry-dependent Nature.

1. Good Location

  • Good location mainly depends on the purpose of purchase & category to be targeted
  • The purpose of purchase is long-term yields & very good return on investments.
  • Each target category has its own preferences.

    For example,

  • Families prefer the proximity to schools, Colleges, essentials & also nearby leisure facilities.
  • The working category prefers the proximity to workplaces & connectivity, mobility & transport facilities.
  • The location should have growth potential of solid infrastructure with proper backup of planned improvements.
  • The location should be ideal for healthy local businesses & should cater to the need of high educational facilities.
  • The location should have good public transportation systems.
  • The location should have clearly marked access to public streets/roads/pathways.
  • If the location is situated with a front directly on the street/road, it’s better.
  • The rapidly developing infrastructure, robust connectivity, and the growth of IT/ITes establishment are highly appreciable.

2. Purchase Price

  • The money matters the most. The property’s true value is the intrinsic value.
  • The yield & growth potential determines the true value of a property.
  • A good deal is a deal where the purchase price is lesser than the property’s intrinsic value.

3. Small Flaws

  • There is no doubt that flawless properties are always good.
  • But at the same time, we can accept small flaws to garner high-level profit in the future.
  • The care should be taken to see that the small flaws must be a fairly quick fix.
  • The flaws must require very less quick fix time consuming with less money expenditure.
  • It is a good way to quickly fix & makes less attractive to be more attractive & improve the property value.

4. Low Maintenace Cost & Care

  • The low maintenance cost & care gives great relief to investors.

5. A Good Rent-to -Price Ratio

  • The right rent-to-price ratio can help you to figure out how to offer the right rent.
  • The renters have the tendency to weigh up the pros & cons of renting Vs buying.
  • Generally, rent of 5 % or less of the property purchase price is good.
  • If it exceeds 5 %, we may end up charging too much & automatically it will lower the demand for the property.

6. Low Vacancy Rates

  • It is good to invest in areas that have low vacancy rates.
  • The low vacancy rates indicate that the current landlords of that area don’t have a problem with their tenants.
  • It results that there will be more inclined to accept what we offer for our property.

7. Long-Term Appeal

  • Looking to the long-term features over the short-term trendy ones is a must for the best investment.
  • The new trends always affect the property market regularly.
  • The trends which are popular today may not be so popular tomorrow.
  • Always look for properties that stand out on their own merits.
  • For example ..sizeable bedrooms don’t go out of fashion.l

8. Fast Turnaround From Purchase To Renting

  • The normal tendency of investment is to rent out the property quickly.
  • Sometimes the flaws might take too much of work with heavy expenses to fix the flaws.
  • The more the time we spend without a tenet in our property costing us more money without generating any return

9. Multiple Industry-Dependent Nature

  • Better to prefer several industries of different nature ( Multiple industries ).
  • It is always good to prefer the property in regions that have several types of industries.
  • Because each type of industry has a good boom period as well as less boom period which will affect the rent structure.
  • People who can afford high rent at the boom period can not afford the same during the dull period.
  • It makes the renters to reduce the rent and sometimes get into mortgages problem.

Places Of The Right Combination Of Essential Features - Top Ten Real Estate Investment Places In Chennai.

The right combination of essential features helps us to identify the best top ten real investment places in Chennai. The list is as below

  • Pallikaranai
  • OMR
  • Oragadam
  • Guduvanchery
  • Ambattur
  • Valasaravakkam
  • Mambakkam
  • Perambur
  • Thiruvallur
  • Korattur

Pallikaranai

  • Located very near to the IT corridor of OMR as well as the Automotive manufacturing region ( GST road ).
  • The employment hubs like Velacherry, Medavakkam, Karapakkam, and Perungudi are very close to this area.
  • Excellent connectivity with other parts of Chennai and move in and out of the city. ( Pallavaram – Thuraipakkam main road, Velacherry main road and Inner ring road, Near to Guindy and Chrompet bus stands, Tambaram & Guindy Railway stations are just 15 k.m away, Alandur & St.Thomas metro stations are very near and the International Airport is just 12 k.m away, the proposed extension of the Pallavaram – Thoraipakkam road up to ECR and the Metro corridor along OMR – Medavakkam )
  • Well-managed Civic Infrastructure
  • Popular hospitals like Dr.Kamakshi memorial hospital and V-Care hospitals are located in this area.
  • Well-regarded educational institutions like Narayana Vidyashram, Vrithi Montessori, and Vels institute of technology are present in this area.
  • This area got excellent established retail showrooms
  • Several infrastructure projects are in the pipeline in the adjoining areas.
  • Birds migrate here throughout the year from all across India and other nations, making it one of Chennai’s last remaining wetland Eco-systems.
  • Cater to both the affordable as well as luxury segments’ housing requirements.
  • The current property price range is Rs. 3,800 – Rs.7,500 per Sq.ft.

OMR

  • The Rajiv Gandhi IT expressway ( State Highway 49-A ) is referred to as the OMR ( Old Mahabalipuram Road ).
  • The OMR stretch lies between Madhya Kailash Temple in Adayar to Mamallapuram in Kanchipuram.
  • The OMR road connects Major commercial areas like Thiruvanmiyur, Pallikaranai, Neelankarai, Guindy Railway station and Chennai central railway station are the major commercial areas in this road.
  • The Chennai international airport is just 30 min drive from this area.
  • The famous Accenture, Hcl technologies, Lastech systems PVT ltd., Wonderworks technologies and Yes Infotech are some of the famous IT companies in this area. ( using OMR we can reach all the IT companies up to Madhyakailash, especially Siruseri ….. Via both front and back gate its only 5.5 k.m )
  • Various IT and Financial companies offer good job offers. OMR is popularly known as IT corridor as it has a popular IT hub and other growing workplaces.
  • Tidel Park, Ascendas, and KMZ Millenia are some of the famous commercial hubs in this area.
  • The excellent growth of micro-markets in Taramani, Perungudi, and Karapakkam lead to the tremendous growth of residential projects in this area. ( many of them are multi-story residential projects of 2 BHK types ).
  • Abacus Montessori school, MNM Jain engineering college, and St.Joseph’s college of engineering are some of the famous educational institutions in this area.
  • Apollo hospital, excellent Supermarkets and extraordinary entertainment centers are present in this area.
  • Beautiful landscapes offer breathtaking views.
  • Both budget-friendly and luxury home options are available.

Oragadam

  • Oragadam lies at the junction between the GST, NH 4 and NH 45.
  • Some of the famous world’s leading companies like Motorola, Dell, Nissan, Apollo Tyres, TVS Electronics and TVS group of companies, Ashok Leyland have set their headquarters in this area.
  • It is one of the largest Automobile hubs in South Asia. In addition, the nearby Sriperumbudur has the most famous industrial hub.
  • The Chennai Metro improved the transportation facilities to a great extent.
  • The Chennai Salem Expressway extends the commutation to a large extent. 

Guduvanchery

  • Guduvanchery is an upcoming smart city with the largest residential area and it is developing day by day. 
  • Guduvanchery is situated along the Tiruchi – Chennai ( NH – 45 ) national highway and it lies between Tambaram and Chengalpattu. 
  • The best calm suburb is located 35 k.m. from the main city with a serene atmosphere.
  • This is one of the best hot properties in Chennai, especially in terms of proximity and access.
  • The land is surrounded by a calm atmosphere with lakes like Nandivaram lake, Thaangal  Eari lake, etc. The other nearby lakes are Manimangalam lake, Kumizhi lake, Urapakkam lake, Perungalathur lake, Rajiv Gandhi lake, and Mudichur lake.
  • The natural presence of so many lakes ensures that there won’t be any water scarcity problems throughout the year. 
  • The all-time availability of water makes one consider the land for sale.
  • Guduvanchery is well surrounded by the developing suburbs of Chennai like Urapakkam, Maraimalai Nagar, Potheri, Adhanur, and many other developing areas.
  •  The developing nature of the land for sale attracts one to finalize it.
  • Highly appreciable Pollution-free environment for healthy living
  • The local Bus Stand at Guduvanchery and the Local suburban railway station provide excellent service with good frequency.
  • The 2 LANE TO 4 LANE ROAD conversion project of 126 crores is in full swing in the GST  – OMR  ROAD. The total distance is 21 K.M.
  • The completion of this project will increase the service of all types of transport tremendously.
  • The regular service of the Pondicherry buses and OMR Buses will start playing on these routes.
  • The upcoming Kelambakkam CMBT Mofussil Bus Terminus will be 10 times bigger than the Koyambedu Bus terminus. It lies between  Vandalur and Urapakkam.
  • The nearby Guduvanchery will get an excellent advantage of both National and International flight services. Particularly the IT people will appreciate this for their decision on land for sale of this area.
  • The ongoing construction of the Perungalathur Flyover of Rs.206 crores will get completed in Oct.2022
  • The Metro Railway service from Airport to Kelambakkam is a part of Chennai – Metro Phase II . It will get completed in 2025.

 Presence of CBSE Schools AND Presence of Government Schools for Boys and Girls

  • The SRM Public School
  • The Velammal Vidhyashram School
  • St.John’s Matriculation School
  • Sankara Vidyalaya School
  • Mahindra World-Class School
  • Vidya Mandir School
  • SCAD World School
  • Government Schools for Boys
  • Government Schools for Girls

Presence of Arts and Professional College

  • Apollo Arts College
  • SRM Engineering  College
  • SRM Medical College
  • Sathya Sai Medical College and
  • Some more nearby famous colleges.
  • The presence of CBSE Schools and reputed colleges makes the parents select the land for sale in this area.

There is a prominent presence and penetration of IT companies and also other companies are taking place. The list is as below

  • The Intimate Fashions-the female inner garments manufacturing company 
  • The Mahendra Ford Car Company
  • IT parks  such as TCS, Cognizant, Infosys
  • Zoho and some more well-known IT companies
  • Many more IT companies have a plan to establish their businesses at Guduvanchery soon.

Guduvanchery is surrounded by a good no of well-known hospitals and the list is as below

  • SRM Hospital,
  • Sathya Sai Hospital,
  • The Deepam Hospital
  • K.S.Child care hospital
  • K.R.Hospital
  • Balaji Hospital
  • Thangam Hospital and some more well-known Hospitals.

Ambattur

  • Earlier, the area was well known for Automobile ancillary industries.
  • Now the area is well known for autonomous automobile industrial estates and IT companies.
  • Heavy vehicles factory, Britannia and Jaya TV, etc are present in this area.
  • The presence and the level of the emerging commercial hub is an enhancing factor for this area.
  • The current property price range is approximately Rs. 7300. per Sq.ft.

Valasaravakkam

  • This area is famous for Top-notch healthcare, education, and retail facilities.
  • The employment hubs can be easily accessible from this area. So the employment hubs play a major role in the development of this locality.
  • Metro green line from Chennai central to St.Thomas mount can be accessed from the nearest metro station. The nearest railway station is the Guindy railway station.
  • Chennai – Bangalore highway strengthens the transportation facilities to the commercial and industrial hubs of the surrounding regions.
  • The Chennai International Airport is just 11 k.m far away.
  • Ambattur industrial estate, Guindy industrial estate, ESPEE IT Park, Kosmo one, DLF IT park,  and Tamarai Tech park are the well-known nearby employment hubs.
  • Ariangar anna institute of science and Technology, Dr. MGR University, La Chatelaine Junior College are some of the famous educational institutions in this area.
  • Forum Vijaya Mall, Chandra Metro Mall, Phoenix Market City, and Palladium Mall are the famous retail malls in this area.
  • The property price appreciation is always positive as the area is constantly expanding commercially.

Mambakkam

  • This fast-growing hotspot is located towards the south of Chennai.
  • The Mambakkam – Medavakkam Road and Ponmar stretch is a very good and fast-growing investment zone with excellent road connectivity and it is well connected through kembakkam – Vandalur road. Urappakkam railway station is just 14 km from this area.
  • Colours Indian School and Naval kg school are the famous well-known schools of this area and all types of educational institutions are coming up in this area.
  • Tejassri Healthcare clinic, Chettinad Health city and Kannan physiotherapy are some of the reputed healthcare hospitals in this area.
  • Chennai one IT SEZ, Futura Tech park, Shriram Gateway office parks, and ASV Southern park are within 18 km of this area.
  • VIEIRA Mall and Marina mall are some of the famous malls located within 10 km of this area.

Perambur

  • Kilpauk, Anna Nagar, Egmore, and Madhavaram are just 6 – 10 k.m away from perambur.
  • Perambur is one of the oldest and most well-planned areas in Chennai.
  • Commercially active centre offering plenty of affordable residential choices.
  • Employment options are good with the Tamilnadu industrial corporation and many IT Companies are present in this area.
  • Well-planned civic infrastructure with well-planned sewage system and water connection.
  • Central railway station and Egmore railway station are just 8 k.m from perambur.
  • Famous Donbosco higher secondary school, Vivekananda Vidyalaya and St. Mary’s group of schools are some of the famous schools present in this area.
  • Sen hospital, Abhijal hospital and Southern railway headquarters hospital are well-known hospitals in this area.
  • The current property price range is Rs.3000  – Rs. 9,500 per Sq.ft.

Thiruvallur

  • The agriculture-based thiruvallur landscape is changing rapidly with more industrial units coming up in this area.
  • It is located amidst industrial hubs like Ambattur industrial estate and Sriperumbudur industrial estate.
  • The scenic setting with great connectivity and the proximity to established and commercial areas like avadi. And the area got good connectivity to Ambattur through suburban train ( just 18 km )
  • Velammal engineering college, Sriramachandra institute of medical sciences, RMK Engineering College, RMD Engineering college, and Sri Venkateshwara college of engineering are some of the best educational institutions located in this area.
  • The professionals working in areas like padi, and Madravoyal prefer affordable housing options.

Korattur

  • An integral part of Ambattur is situated very close to Anna Nagar.
  • Similar to Anna Nagar, Korattur too has a well-planned layout complete with TNHB Housing ( which makes it an attractive destination for families ).
  • Well-planned social infrastructure with plenty of schools and hospitals.
  • Korattur lake gives some much-needed greens
  • It’s an auto Auxilliary hub, expansion of numerous IT companies and Manufacturing units.

Conclusion

  • Invest in areas that are in a developing stage and already producing good results.
  • Pollution-free environment for healthy living with outstanding modern infrastructure facilities is highly appreciable.
  • The most important thing is excellent connectivity in & around the city with a promise for secured community living with rapid land value appreciation.
  • The possible risk factor is that sometimes the market is unpredictable & can change on a dime.
  • And it is not just the market – the weather, the natural disasters & other factors out of our control & can take a serious toll on our investment.
  • The rapidly developing infrastructure, robust connectivity, and the growth of IT/ITes establishment, the  Multiple plot demand in Chennai is likely to surge in the times to come.  
  • The Namma Family Builders and Developer Pvt Lt., in Guduvanchery, ensures the best and most value-for-money deals with easy processing, negotiating, and comfortable closing of every deal.
  • They help u to choose the right location and property according to our budget and other requirements.
  • For further details please visit our website.

FAQ

1. List out essential parameters for the selection of the best investment place.

  • Good location with stubborn connectivity
  • Availability of water resources
  • Free from power issues
  • Level of urbanization
  • Distance factor ( i.e., distance from workplaces, schools & essential needs )
  • Well-planned social infrastructure with plenty of schools and hospitals.
  • Seasonality of the area for rental purposes ( i.e., capable to cater to the needs of categories of all rental segments. ) 
  • The current R.O.I of the property is based on the current comparative market analysis.

2. Why Chennai is the best place for Property investment?

  • Availability of all facilities to all categories.
  • The presence of a good number of International IT firms, all types of manufacturing and service companies, and also the presence of all the Government headquarters.
  • The scope for the development of all types of business opportunities and Educational facilities.

3. Why Real estate investment is good & highly profitable type of investment in Chennai?

  • The real estate investments are a comparatively more stable business with a good promise of R.O.I.
  • Chennai is abundant with safe & comfortable housing zones within the city as well as on its outskirts. The day - by day expansion of the city is great.
  •  The possibility to get a good amount of additional income is always very attractive for people with multiple real estate properties in addition to their own homes.

4. Which is the number one best investment area in Chennai as of today?

  • Pallikaranai  stood as no.1, because of the following factors
  • Potential of the area to appreciate well in value
  • Very good location: Close proximity to IT industries in OMR
  • Close to Guindy and Chrompet, Velacherry main road, the
  • Inner ring road and Pallavaram - Thuraipakkam main road.
  • Uninterrupted metro water and good groundwater availability. ( a well-managed civic infrastructure )
  • Free from the interrupted power supply with low voltage and voltage fluctuation issues.
  • Seasonality of rental property ( i.e., Chances of the constant demand for rental property from all categories of people )
  • Presence of popular hospitals like Dr.Kamakshi memorial hospital & well-regarded educational institutions like Narayana vidhyashram & Velstech..
  • The current rate of return ( R.O.I ) for the property is based on the comparative market analysis.

5. How to look for the best investment area in for a bright future?

  • Always look for potential properties in a developing stage that stand out on their own merits.( i.e., the existence of a good number of multiple industries with scope for future expansion and very good job opportunities, the chances for the massive commercial sector investment,  the proposed plan for good connectivity, and educational institutions.) 
  • Here the investor has the opportunity to buy large areas at comfortable square feet rates within his proposed budget range.
  • Also the investor will enjoy the developing nature of the area with the latest upcoming modern facilities of high technology and quality.
  • It is always better to prefer the developing one instead of the already established one for a reasonable economic budget without compromising all the upcoming modern facilities.

6. List out some of the bright future areas in Chennai of fast growing nature.

  • Guduvanchery, Oragadam, Thiruvallur and Korattur are some of the bright future areas with plots of multiple sizes catering to the multiple needs of people of both budgeted and non-budgeted categories.
  • The distinctive factor is that already well-established and popular places have the disadvantage of losing the much sought-after demand due to the high square feet rates and costly life culture of their places.

7. List the three basic success factors for real estate investment

Proximity, accessibility, and affordability are the three basic success factors for land investment.

8. What is the good deal purchase price of the best real estate investment?

  • The property’s true value is the intrinsic value. The good deal purchase price of the Land investment is that the purchase price is lesser than the property’s intrinsic value. It is a good deal.

9. How do get benefitted from minor flaws in the best real estate investment?

  • There is no doubt that flawless properties are always good. But at the same time, we can accept small flaws to our advantage to garner a great investment in the future.
  • Proper care must be taken to see that the small flaws must be of a fairly quick-fix nature.
  • It must require less time consuming with less money expenditure
  • It is an excellent way to make a less attractive to become more attractive, that is if you can fix them and improve the property value.

10. Brief cost approach and Income approach in real estate investment

 COST APPROACH

   The cost of the land and construction minus depreciation

     —-  suitable for new construction.

 

INCOME APPROACH

   Based on expected cash inflows - suitable for rentals.

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