Sholinganallur offers good rental yield
Chennai has always been a real estate hotspot for residential units specifically, the south of Chennai along the OMR. Real estate sector has changing trends to adapt to the current demand of the consumers. Sholinganallur is a suburban locality in south of Chennai close to other important suburbs like Medavakkam and Mambakkam.
The locality is in proximity to the Old Mamallapuram road (OMR) and the East coast road (ECR) where the realty market for the residential sector has heavy demand due to the location of IT industries. People who work in these industries are mostly middle class workers who look for houses that are easily accessible for daily commutation to their work places. The locality is not far away from the Grand southern trunk (GST) road and thereby accessibility to the centre of the city is also easier. Adding to this the micro market is also very close to Tambaram, which is an important railway junction for the trains traveling through Chennai. Tambaram is also a junction for the LRTS (Light rail transit service) which commutes to other points of the city.
Coming to the infrastructure side, the locality has decent infrastructure with well connected roads and nearby railway station. There has been small power cuts which is prevalent all over Chennai, but the government has given the word out that from June 2nd there won’t be power cuts either. The locality is also crowded with standard schools, 24 x 7 operational high medically equipped hospitals, banks and ATMs. Along with these there are few restaurants and stores to buy daily groceries too.
Most of the people who try to find a property here are for rent rather than buying properties and most of the consumers are IT professionals from the IT industries nearby. There has been appreciating demand for flats for rent. One can expect a good rental yield if they own a house in this locality. Commonfloor listing says that if you own a 2 BHK in this area you can make Rs. 8,000 – 15,000 per month. You can fetch a 2 BHK apartment of 1184 sq.ft. – 1384 sq.ft. for the above said price. Investment in properties has been dull in the current season in this micro market. This may be reasoned out due to the depreciating capital values. There has been a dip of 8% in price from last season. The following graphs explains the current rental rental availability and average rental yield in the locality.
According to commonfloor listing data, 2BHK and 3 BHK are available for rent more than other type of BHK in Sholinganallur. Every type of apartment on average gives 3% rental yield and 1 BHK apartments gives the maximum yield of 3.94%.
So one can safely conclude that the demand for the realty market in this locality has been resorted more to rental than to buying out properties as a source for profitable investments. But new projects has been proposed to this area which might boost the property values in the area in near future.
