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Commercial Real Estate | Investment Tips

Which is the Best Area for Commercial Real Estate Investment in Chennai?

which-is-the-best-area-for-commercial-real-estate-investment-in-Chennai
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November 24, 2022
Market Of India

Introduction

The future of commercial real estate is full of opportunities and growth. Chennai’s commercial real estate market has been steadily growing in both the northern and southern parts of the city. As previously stated, rising economic activity and a return to the workplace have increased demand for commercial real estate. However, one of the factors that are gaining traction is the growing importance of co-working spaces. Another reason for the increased interest is innovative office space concepts, business-friendly initiatives, and first-rate tenant amenities.

Did you know?

Commercial real estate has the lion’s share, expected to contribute 13% of the country’s GDP by 2025. Commercial property investment in Chennai has rapidly increased due to small start-ups and prominent IT players in Chennai. According to data, commercial property development has increased by 10-11%.

With the liberalisation of the economy and the relaxation of FDI rules, NRI investors are eyeing commercial Real Estate investments in India, which generate higher returns than the traditional residential market. South India’s metropolises, such as Chennai, are emerging as real estate hotspots for NRIs. With commercial real estate investment opportunities to suit every budget and a flexible market that allows for easy selling and buying, Chennai’s real estate market is thriving. Commercial property investment in Chennai is wise for any investor seeking guaranteed capital appreciation and consistent rental income.

How did Chennai Real Estate Outperform in 2022?

The emergence of the IT industry, which gave rise to SEZs and the IT corridor, has amplified real estate interest in Chennai in 2022. Over the last two years, monthly price increases for properties for sale in Chennai have ranged between 3% and 5%. As a result, Chennai real estate will inevitably provide better returns in 2022-23.

Top Commercial Areas for Commercial Real Estate Investment in Chennai

IT sectors-ITES, retail, consulting, e-commerce, and industrial developments are some of the major factors driving the increase in demand for commercial property. Due to increased IT parks and infrastructure, which provide better access to various parts of the city, Chennai has become a prominent market for commercial properties. The REITs anticipate increased demand for manufacturing and IT-related institutions due to the city’s lower prices and growth opportunities. Let us explore several areas which are the best for commercial real estate investment in Chennai. 

1. Perambur

perambur-railway-flyover

It is a thriving commercial hotspot with endless employment opportunities, providing working professionals with the ideal opportunity to maintain a perfect work-life balance.

  • Accessibility: The area is approximately 4 kilometers from the heart of Chennai and provides easy access to the city’s railway lines. 
  • Commercial clusters: Access to nearby areas such as the Madhavaram High Road, Paper Mills Road, Siruvallur Road, and Perambur Main Road is a notable feature of the area, as the most famous roadways pass through Perambur, increasing its accessibility by two notches. 

Excellent infrastructure: Perambur in North Chennai is known for having one of the best social infrastructures. After Kathipara and Guindy, Perambur’s flyover is still one of Chennai’s tallest bridges. Perambur is poised to become one of the ideal locations for commercial real estate investments and employment hubs with the arrival of the Chennai Metro Rail Phase II.

2. Choolaimedu

Choolaimedu is a prominent commercial hub in Chennai, bordered by the popular Kodambakkam, Vadapalani, MMDA Colony, and Nungambakkam. It is one of Chennai’s affluent suburbs and one of the city’s oldest residential areas; it has a cosmopolitan population.

  • Connectivity: The neighborhood is approximately 7 kilometers from Koyambedu Bus Stand, one of Chennai’s bus transportation landmarks. 

In terms of metro connectivity, the Koyembedu Metro Station, the Airport Metro Station, and the Chennai Central and Egmore Metro Stations are all nearby.

3. Old Mahabalipuram Road (OMR)

omr-road-expressway

It is one of Chennai’s prominent and renowned commercial and residential corridors. It is known for its well-organized infrastructure amenities and excellent proximity to several locations. OMR is an IT hub, which explains why there are so many IT/ITES companies. OMR is home to many multinational corporations as well as reputable Indian corporations.

  • Accessibility: Located in the south-Chennai, OMR is well-connected to a vast network of roads, so it is easy for you to reach surrounding areas such as Chrompet, Velachery, Perumbakkam, Meenambakkam, etc. with ease. 

4. Pallikaranai

pallikaranai-road

Pallikaranai’s commercial property market has seen a massive surge due to this and the development of the IT industry and co-working spaces. Commercial development has also boosted rental demand in the area.

  • Proximity: Pallikaranai, near the Old Mahabalipuram Road (OMR) IT corridor and the Grand Southern Trunk (GST) Road automotive manufacturing region, is also close to other employment hubs such as Velachery, Medavakkam, Karapakkam, and Perungudi, among others. It is one of Chennai’s best areas for commercial real estate investment. 

5. East Coast Road (ECR)

commercial-plot-in-ecr

ECR is an excellent place for commercial real estate investment. It has a plethora of facilities and excellent infrastructure, and any investment will yield a profit.

  • Evolving landscape: ECR is constantly changing, with many new commercial and residential buildings on the horizon. The real estate market in this city is thriving and has been steadily rising.
  • Connectivity via metro stations: ECR has an efficient network of underground transport on both bus and metro trains, with regular suburban rails.
  • Posh community with great proximity to employment hubs

Is Investing in Commercial Property a Good Idea?

investing-in-commercial-property

Real estate investment decisions are typically tricky, especially when deciding between residential and commercial property. The decision is even more difficult for someone new to real estate investing. While investing in commercial property can be very different, it is essential to understand the type and involvement required after the investment is made.

  • High rental income: Commercial property has a higher rental yield than residential property. Commercial property outperforms residential property in terms of rental yields. Commercial property typically yields in the double digits. It is the single most significant benefit of investing in commercial real estate. If the location and condition are reasonable, it can even be 12-14 percent.
  • The regular inflow of income: Commercial property income is typically more frequent and consistent than residential property income. This is also a significant benefit for investing in commercial properties. 
  • Value appreciation: With good socio-physical infrastructure, the value of your property will rise. As a result, commercial property investment in a prime location with new developments will be financially advantageous.
  • Enhanced rental yield: One of the most significant advantages of commercial property investments is the ability to obtain a high rental yield. You can expect a rental yield of 6-8% of the property value for an excellent commercial property.

Commercial Property Investment Tips

commercial-property-investment-tips

  • Consider the Location – Without a doubt, the location of your chosen project is the essential factor. It simply means that your investment option should be easily accessible and well-connected to other sites. It will allow your customers to reach out to you more effectively.
  • Good infrastructural amenities: To retain tenants or keep office spaces open for a more extended period, it is critical to invest in commercial properties with appealing exteriors and interiors, ample parking space, and proximity to public transportation.
  • Ensure tenancy and rental yields: Tenancy research is recommended if you want to know what to expect in the long run from the commercial property you are about to invest in. Understanding the market dynamics is essential, but so is calculating rental earnings after tax or insurance deductions.

Invest in Market Of India

Market of India is India’s largest upcoming wholesale and retail marketplace, located within SPR City in the heart of Chennai. It extends some of Chennai’s most important trade hubs, such as Koyambedu, Parry’s, Sowcarpet, Mint Street, Ritchie Street, and others.

Market of India is a first-of-its-kind marketplace that effectively centralises the city’s trade scene, with state-of-the-art facilities and a central location. Market of India has a diverse range of commercial spaces, including retail and wholesale spaces and office spaces with world-class infrastructure.

  • 2 km away from Kilpauk
  • Located in an integrated township 
  • 4.2 km from Chennai Central
  • 10,000+ vehicle parking spaces
  • 20+ ancillary services and much more

Buying a commercial space at Market of India will give your business endless opportunities to grow and expand by multi-folds. Enquire now. 

Bottom Line

Market of India is India’s largest upcoming wholesale and retail market. Market of India, located in SPR City offers office, commercial, wholesale, and retail spaces. With 20+ ancillaries, Market of India offers traders and business people online marketing support. We hope the above-listed areas give you potential reasons for commercial investments in Chennai. They are all commercial hotspots that yield huge yields and returns for their investments.

FAQs

1. Which is the best area for commercial real estate investment in Chennai? 

According to sources, several places are best for commercial real estate investment. It includes places like Perambur, and Pallikaranai, with great proximity to employment hubs and transport connectivity. 

2. Which type of commercial real estate investment is more profitable? 

 Investing in office spaces, marketplaces that offer excellent connectivity, parking facilities, world-class infrastructure, and the heart of city location with top-notch facilities will generate higher returns due to proximity.

3. What factors determine the growth of commercial real estate investment?

Several factors determine the growth of the specific commercial investment. The area must be in the heart of the city, with top-notch infrastructure, convenient rail and metro connectivity, and available office spaces near employment hubs that can determine the growth of the commercial investment. 

 

Market of India is India's largest upcoming wholesale and retail market in Chennai. We are known for having markets and office spaces with world-class infrastructure and ancillary services. We aim to offer traders a wide range of options for commercial spaces.

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