The main goal of investing is to get the highest possible return. Real estate is a lucrative investment option and is growing rapidly year after year. Many millennials are interested in investing in real estate to either settle down or to get a good return on their investment. However, to make a profit, it is crucial to carefully analyse and invest in a developing location that is not yet on everyone's radar.
Chennai is one such location that offers promising investment opportunities and is considered one of the best metropolitan cities. Therefore, it's worth discussing why real estate investment in Chennai is more profitable than in other places.
Real estate investment in Chennai is considered one of the most secure and profitable investment options, and there are several factors that make it a lucrative choice. Chennai is recognised as India's "Detroit" due to its thriving automobile industry, and it has experienced consistent economic growth over the past decade, which has made it an attractive market for investors. Here are some reasons why investing in Chennai is a wise decision:
High Rental Yields
As the demand for properties in Chennai continues to rise, rental yields have also increased, making them incredibly higher than in other cities across India. Due to the significant rise in rental income, many individuals consider real estate investment in Chennai as a reliable source of regular income, which can provide long-term financial stability and benefits.
Due to its thriving industrial sector and abundant job opportunities, Chennai is an ideal location to invest in real estate. The salaries offered in this city are higher than the national average. Also, government headquarters, logistics, manufacturing, industrial services, and IT firms provide plenty of job opportunities. Therefore, real estate investment in Chennai is an attractive option for those seeking consistent income or future financial gain.
High ROI potential
The demand for residential properties in Chennai is high due to the influx of migrant workers and residents from other parts of India. Thus, it allows investors to make the most of their money and generate good returns in the future. The city's ongoing expansion and development plans make it a very attractive real estate investment destination. Residential properties in areas like ECR, OMR, Madhavaram, Ponamelle, and Arakkonam are in high demand and are trending residential properties in Chennai.
Cost-effective real estate pricing
Chennai's real estate market is cost-effective and affordable compared to other metropolitan cities like Mumbai. For example, the price of a sea-facing plot in Chennai is much lower than in Mumbai. This makes investing in Chennai's real estate market a once-in-a-lifetime opportunity for those looking to make a fortune.
Additionally, various investment opportunities are available in and around Chennai's work culture and entertainment zones like Ambattur and Arakkonam, located close to industrial estates; OMR, Ponammalle, and Thiruvanmiyur, located close to the IT industry; and ECR, known as Chennai's getaway destination, etc.
Strong economic growth
Chennai, the capital of Tamil Nadu, has a strong and diverse economy with various industries like manufacturing, IT, logistics, and healthcare. This economic growth has led to increased demand for housing in the city, contributing to its high economic growth.
Tamil Nadu is the country's second-largest GDP contributor, with more than 60% of its population living in the cities. It is ranked as India's most economically free state and one of the top three states in electricity generation.
Affordable property prices
As previously mentioned, property prices in Chennai are generally lower than those in other major Indian cities like Mumbai and Delhi, which makes it an attractive investment location. The outskirts and developing areas of Chennai are more affordable and have high growth potential. Once the construction is complete, investors can look for tenants, as there is a high demand for rental properties in Chennai. This high demand for rentals can result in positive rental yields for investors, making it an attractive option for those seeking long-term gains.
Good infrastructure and connectivity
Chennai has excellent transportation, healthcare, and education infrastructure, which makes it an attractive place for professionals and families to live. Again, each area has its own set of amenities, including prominent schools, hospitals, grocery stores, and shopping malls, providing convenience to residents.
Chennai's affordable property prices, combined with its strong economic growth, result in a high potential for positive rental yields, making the city a desirable investment destination. The city is well-connected through various modes of transportation, including government buses, TNSTC, local trains, and the metro, which is not only convenient but also cost-effective.
Besides, the government is investing heavily in infrastructure development to improve the city's overall quality of life, which further adds to its appeal. Overall, Chennai's growing population, strong economic growth, and competitive prices make it a desirable destination for real estate investment.
PropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore.