Published on 2/5/2017 2:02:50 PM
Where should you invest in Chennai to earn high rentals?
Residential rental market seems to have benefitted in the past three months. Property brokers share that the demand for rented houses has been going up across localities. The end users' preference, for now, has shifted to renting property and waiting for an expected softening on prices and home loan rates, thereby enhancing affordability. Chennai has witnessed an increase of 8-12 per cent in average weighted rental values against dormant capital values for the year 2016.
As an investor, if you are scouting for properties and wondering where to invest, we have brought you the top areas where investment might prove to be profitable.
Localities offering high rental values
For the benefit of the readers, we have segregated the information in two parts – Flats and Residential Houses. Localities offering flats in comparison to the one offering houses have fared better till now.
The following graphs show the rental yield of the past 9 months. Rental Yield represents annual return from renting your house in that locality.
Magicbricks data reveal that among the localities offering flats in Chennai that have shown a high growth in rental yield in past 9 months, Thiruvanmiyur tops the list with 16.6 per cent growth, followed by Nanmangalam with 11.5 per cent growth, Poonamalle with 10.2 per cent growth, Oragadam with 10.1 per cent growth, and Navalur with 6.7 per cent growth.
Localities offering residential houses which have recorded high rental yield are Medavakkam with 12.5 per cent growth, followed by Mangadu with 3.1 per cent growth, Ayappakkam with 1.2 per cent decline, and Sithalapakkam with 24.0 per cent decline.
Properties found in these localities
We have considered two localities offering abundant flats and residential house inventory and mentioned their current property supply.
2BHK Flat price bracket
3BHK Flat price bracket
Rs 54 lakh – Rs 1.26 crore
Rs 1.20 - 2.80 crore
Rs 22.50 - 52.50 lakh
Rs 27.72 - 64.68 lakh
2BHK Residential House price bracket
3BHK Residential House price bracket
Rs 25 - 52.49 lakh
Rs 51.60 lakh – Rs 1.20 crore
Rs 35 – 65 lakh
Rs 45 – 85 lakh
The social infrastructure
Magicbricks ratings and reviews show the social profile of the localities. The readers who are the residents, or property owners have given the locality ratings based on their liveability quotient.