One of the striking reasons for the demand for quality rental properties in Chennai is the ever increasing market arising out of the inflow of a chunk of expatriate population. Besides, Chennai is also home to many manufacturing units from automobiles, to electronics and engineering goods; and the booming market has also lured many foreign banks into setting up offices in Chennai.

Commercial Rentals in Chennai

Just like Bangalore, Hyderabad or NCR, IT is undoubtedly the prime reason for the buoyancy in the commercial rental segment of Chennai. The last few years which have seen the emergence and expansion of many IT firms in Chennai which has widened the scope for office space rentals. About 90 % of the commercial space has been taken up by IT and related services Companies, in the last two years.

Office spaces like Tidel Park being fully occupied, software companies are now looking for alternatives. But the quality construction and state-of-the-art facilities provided by Office spaces like Tidel Park has increased the expectations and set a sort of benchmark for most IT companies, when it comes to quality.

Meanwhile, the quality construction and state-of-the-art facilities provided at the aforesaid places have set a sort of benchmark for most IT companies and thus the expectations are very high, when it comes to quality.

However, the rentals are likely to be under pressure as a considerable space of 20 million sq. ft would be added to Chennai by 2008. Here, of course, renting office space in Chennai will be cost-effective.

Sophisticated office spaces at Tidel Park and Software Technology Park being fully occupied, software companies are now looking for alternatives.

(*Indicative Commercial Rental Values in Chennai)

Retail rentals in Chennai

The upsurge of the rental values in the Chennai retail market marks the relaxation in FDI; and many top-notch Indian brands making a foray into the retail scene in the city. Even small innovative ventures like those started by RPG, has today blown into a full-fledged industry. Growth rates for this segment are pegged at 50 % every year. Depending on the area you are looking for, the rental can be anywhere between Rs 20-70 per square feet.

(*Indicative Commercial Rental Values in Chennai)

Residential rentals in Chennai

While residential rental property in Chennai, in demand among IT professionals is mostly in the IT corridor on the Old Mahabalipuram road, Velacherry where residential rental properties are available at Rs 3-6 per square feet.

The most preferred destination for residential rental properties in Chennai among expat however remain, Kotturpuram , Boat Club, Poes Garden and Wallace Garden; where the residential rental rates range anywhere between Rs 10-20 per square feet.

Encouraging news for people aspiring to rent a commercial or residential real estate in Chennai, both capital prices and rentals in Chennai in 2007 have come down by almost 15 per cent that that of the preceding year. Most real estate agents figure out that the prices had rose to speculative levels earlier. Absorption rates at a number of projects went below 40 per cent as the prices skyrocketed and correction was due, in such case.