What Can You Buy for 1 Crore in Chennai's Real Estate Market?

Chennai, a leading metropolitan city in India, is a prime destination for real estate investments. The city's growing IT sector, infrastructure developments, and robust economy are driving the real estate market. With a budget of 1 crore, homebuyers can explore a range of property options, from luxury apartments to gated communities.

Chennai Real EstateProperty PricesGated CommunitiesInfrastructure DevelopmentLuxury HousingReal EstateOct 27, 2025

What Can You Buy for 1 Crore in Chennai's Real Estate Market?

Real Estate:Chennai, one of the metropolitan cities in India, is a preferred destination for real estate investments. The growth of IT hubs, ongoing infrastructure developments such as the metro rail expansion, and bustling industries are among the major growth drivers of Chennai’s real estate market. Homebuyers look for property options across diverse categories, from affordable housing to the premium segment. A significant portion of homebuyers is now targeting the Rs 1 crore budget, a noteworthy trend across major cities, including Chennai. The rise of gated communities catering to changing buyer preferences is another interesting trend in the Indian real estate sector, and Chennai also sees the growth of many such gated projects. A homebuyer with a Rs 1-cr budget can get properties from spacious apartments to luxury bungalows. Factors such as location, amenities, and connectivity influence property values in an area. In this guide, we explore property options available to homebuyers with a budget of Rs 1 crore in Chennai.

Chennai’s residential market has been witnessing steady growth over the years, amid rising demand for homes and an increase in new launches. The expansion of the job markets and infrastructure developments are key driving factors for this growth. According to the Housing Price Index (HPI) for September 2025 by Housing.com, the new supply of housing units increased by 87% in Q2 2025, while demand rose by 11%. The HPI reading for Chennai rose by 10 points YoY and 8 points QoQ. The demand mainly comes from mid-segment buyers, especially end users. The expanding employment hubs have been attracting an increasing number of young property buyers, who prefer smaller 1BHK units. However, 2BHK units continued to see a steady demand from nuclear families.

Another noteworthy trend in Chennai’s housing market is the increasing investments in senior living projects. The demand for senior living gated projects has significantly increased, influencing property prices in the city. Apart from this, other significant factors that have influenced property prices in Chennai include:

Infrastructure upgrades
The Tamil Nadu government has been investing in major infrastructure projects, which have positively impacted the Chennai’s property market. For example, the upcoming Rs 63,246 crore Phase 2 metro project is expected to connect far-flung areas of the city, such as Poonamallee, SIPCOT, and Sholinganallur. Three new corridors spanning 118.9 km will be added under this metro project. The state government has also approved land acquisition for the 15.46-km Airport-Kilambakkam metro project. Further, other infrastructure projects, such as the 62-km Outer Ring Road and the 133-km Peripheral Ring Road, are set to reduce traffic congestion while offering seamless connectivity to different parts of the city, including major industrial hubs. These projects are aimed at boosting regional connectivity, driving economic growth, creating jobs, and facilitating real estate development.

Growth of employment hubs
Chennai’s strong economy, driven by the IT and manufacturing sectors, has boosted demand for residential and commercial properties. The influx of working professionals has created steady demand for homes to buy and rent. The current market favours property investors seeking excellent rental returns.

Government initiatives
The Tamil Nadu government has played a key role in sustaining the market sentiment. Besides RERA, the government supports real estate investments in many other ways. For instance, the introduction of a 1% concession on registration fees for women buyers has positively impacted property buying. Other initiatives by the state that have encouraged real estate developments in Chennai include the implementation of a Single Window Clearance system to streamline approval processes.

Property values are based on numerous factors, such as location (including the availability of social amenities, infrastructure, and connectivity), property type (apartment, bungalow, independent house, etc.), and current market conditions, including supply and demand dynamics. The affordable property range in a metro city like Chennai typically starts at Rs 40-50 lakh, while it is much lower —around Rs 20-30 lakh — in a tier-2 city. Major cities are also witnessing the rise of the premium housing segment, where apartments are priced in the range of Rs 1 crore. A budget of Rs 1 crore to Rs 2 crore typically defines the entry level of the luxury housing segment. This trend is influenced by rising income levels and evolving buyer preferences, as many people seek modern living with access to numerous lifestyle amenities. The demand for luxury homes is expected to remain strong, driven by current market sentiment and increased interest from property investors.

The central neighbourhood of Chennai is home to some of the city’s posh localities, such as Poes Garden, Nungambakkam, Alwarpet, Anna Nagar, and Guindy. These are well-developed, upscale locations known for their high-end properties and peaceful appeal. The average property rates in the city centre range from Rs 16,000 to Rs 22,000 per square foot (sq ft). Independent houses and villas are among the popular property options in these areas. The real estate market in the city centre is mostly saturated with limited new supply. Strong demand in these areas drives the property price increase. For a budget of Rs 1 crore, buyers may find a 2BHK or 2.5BHK flat of 850-870 sqft in Anna Nagar.

Southern Chennai also houses some posh neighbourhoods such as Adyar, Besant Nagar, East Coast Road, and Thiruvanmiyur. This region is characterised by luxury apartments, modern infrastructure, reputed educational institutions, and healthcare facilities. Moreover, some of these areas are close to IT hubs, making them preferred hotspots for working professionals. Property rates in Adyar are Rs 19,425 per sq ft, up 19.47% YoY. The property rate in Besant Nagar is Rs 20,967 per sq ft. Spacious 1 BHK, 1.5BHK, or 2BHK apartments are available in these localities for a budget of Rs 1 crore.

The Old Mahabalipuram Road (OMR) or Rajiv Gandhi Salai is a 45-km arterial road in Chennai, connecting major IT hubs and residential areas. Also known as the IT corridor, OMR sees a consistent property demand owing to its strategic location. Proximity to offices makes this location an ideal choice for working professionals and families. Sholinganallur, Thoraipakkam, Perungudi, Navalur, and Siruseri are some of the popular localities along OMR. These localities attract many developers who have launched new residential projects. Buyers can find luxury apartments in gated projects with access to modern amenities. The average property price in OMR is Rs 8,000 per sqft. Spacious 2BHK and 3BHK apartments are available for Rs 1 crore. The expansion of the Chennai Metro network and new infrastructure projects, such as the ring road, aim to ease access to Chennai’s peripheral areas. Thoraipakkam, Perungudi, Navalur, and Kelambakkam are among the rapidly developing areas.

A budget range starting at Rs 1 crore can offer a range of property options for homebuyers in Chennai, including compact 2BHK apartments in posh areas and spacious flats and villas in emerging suburbs. The fast-developing infrastructure, emerging IT corridors, and demand for premium homes due to an increase in buyers’ purchasing power are driving Chennai’s property market towards growth. When deciding on a property option, property buyers need to evaluate their needs. A well-developed locality with good connectivity and access to amenities is an ideal choice for end-users, while emerging suburbs may be a good choice for property investment purposes.

Frequently Asked Questions

Which is the best area to buy a flat under Rs 1 crore in Chennai?

Emerging localities along the OMR (Old Mahabalipuram Road), such as Sholinganallur, Thoraipakkam, and Perungudi, are ideal locations for property investments within Rs 1 crore.

Where can you find a 3BHK apartment in Chennai within Rs 1 crore?

Apartments of 3BHK sizes in Chennai within Rs 1 crore may be available in emerging localities on the city's outskirts, such as Navalur and Sholinganallur.

What are the key factors influencing property prices in Chennai?

The key factors influencing property prices in Chennai include location, amenities, infrastructure development, and current market conditions such as supply and demand dynamics.

What government initiatives have positively impacted Chennai's real estate market?

The Tamil Nadu government has introduced initiatives such as a 1% concession on registration fees for women buyers and the implementation of a Single Window Clearance system to streamline approval processes, which have positively impacted the real estate market.

What is the current trend in the luxury housing segment in Chennai?

The luxury housing segment in Chennai is experiencing strong demand, driven by rising income levels and evolving buyer preferences. Many people seek modern living with access to numerous lifestyle amenities, and the demand for luxury homes is expected to remain strong.