Chennai: The search for affordable homes with better connectivity is reshaping the city’s rental map. As tenants move beyond traditional residential pockets, the western suburbs, deeper parts of south Chennai and the GST Road corridor have emerged as the biggest gainers.Chennai recorded an average rental growth of 8% over the past year, according to NoBroker’s Rent Report 2026. The sharpest increases were reported in infrastructure-led suburbs rather than premium neighbourhoods. Iyyappanthangal, Koyambedu, West Tambaram, Medavakkam, Thoraipakkam and Ramapuram recorded rental appreciation of more than 15%.Iyyappanthangal registered the steepest increase, with average monthly rents rising 21.7% from 2025. It was followed by Koyambedu at 20.3%, West Tambaram at 19.1%, Medavakkam at 18.5%, Thoraipakkam at 18% and Ramapuram at 15.3%.“Metro expansion, better road connectivity and proximity to employment centres are driving the shift. Areas along upcoming Metro corridors, including Iyyappanthangal, Ramapuram and Koyambedu, are witnessing rising rental demand,” said Saurabh Garg, co-founder and chief business officer of NoBroker.Along OMR, the continued expansion of IT companies and global capability centres has kept rental demand strong in Thoraipakkam, Perungudi and Sholinganallur, he said.The opening of the Kilambakkam bus terminus is also reshaping the rental market along the GST Road corridor, with Pallavaram, Perungalathur and the Tambaram belt attracting more tenants. Much of the demand is from young technology professionals and corporate employees looking for better homes within their budgets, Garg said. Instead of renting in the core city, many are choosing well-connected suburbs.G Mohan, a member of the Chennai Southern Builders Association, said the average monthly rent in Tambaram was ₹15,073, about 30% lower than Porur’s ₹19,753, making it an attractive option for office-goers.“Rents have increased sharply in Nanganallur too. As a result, many people are moving to localities farther south, such as Madambakkam, Mambakkam and Ponmar, which offer easy access to the IT corridor,” he said. KK Nagar, Tambaram, Maduravoyal, Adyar and Valasaravakkam are among the micro-markets expected to record the highest rental appreciation.Semi-furnished homes continue to account for the largest share of both supply and demand, though demand for fully furnished homes has grown gradually. “Tenants are increasingly moving towards higher-quality homes that offer greater convenience and better living standards. Demand for fully furnished homes has increased by 49% since 2023 while the unfurnished homes are losing demand year on year. Fully furnished homes attract 1.4 times more demand per home compared to the semi-furnished homes,” said a researcher from Nobroker.Tenant preferences are also changing, with 59% now choosing apartments in residential complexes or gated communities, up from 42% in 2020. “This is because of access to amenities such as power backup, parking, recreational facilities and improved community living, making them increasingly attractive to both working professionals and families,” she added.
