Indian Real Estate

Velachery: A Growing Residential Hub in Chennai 2024


03, December 2025

Velachery, once a small village on the outskirts of Chennai, has grown into a popular residential area. Its proximity to major IT corridors and a well-connected transportation network make it a desirable location for investors. Velachery has emerged as a popular investment destination in Chennai, due to recent metro rail connectivity and the proposed Bangalore Chennai Expressway project.

Velachery's strategic location near IT hubs such as Chennai One IT SEZ and MPL Silicon Towers makes it a popular rental destination for working people. Additionally, the area is located in South Chennai and plays an important part in the city's growth due to its proximity to vital business districts such as the OMR IT Corridor and the Central Business District.

In this blog, let's look at the reasons behind the growing interest in Velachery's real estate market.

Why Velachery is a Great Place to Call Home?

Chennai has seen a remarkable rise in its Housing Price Index, with an impressive 8.41% increase in 2024, making it a top choice for property buyers. Velachery, which is ideally placed in South Chennai, exhibits this trend as a bustling residential and commercial real estate market. It provides a varied selection of property options, including villas, builder floors, flats, and land of varying sizes, to suit different preferences.

Infrastructure in Velachery

Velachery offers a strong social and educational infrastructure, with several prominent medical and academic institutions, like Prashanth Super Speciality Hospital, Helios Hospital, Xcellent Care Hospital, DAV School, and Gurunanak College.

The area is well connected through Velachery Main Road, GST Road, OMR, and the Velachery MRTS station. It is also about 14 km from Chennai International Airport, making it a popular choice among residents and investors.

Velachery provides a variety of social activities and lifestyle options, including the Velachery Aquatic Complex. Phoenix Marketcity, one of India's largest shopping malls is also located here, serving as a cultural hub for Chennai. Additionally, the area has some of the finest hotels and restaurants, such the ITC Grand Chola, Westin Chennai, and Park Hyatt, which are all conveniently located near the airport.

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Real Estate Growth and Trend in Velachery

Velachery has become one of Chennai's most desirable areas as a result of its strategic location advantages and appeal to buyers. It has an extensive choice of villas, flats, and plots of various sizes, as well as a strong reputation for builders, which provides buyers with trust. The average property pricing for flats in Velachery was roughly around Rs. 8,000 per sq ft in July 2024.

In terms of price appreciation, flat/apartment prices in Velachery have increased by around 35.6% during the last decade. The area is also doing well with properties, with prices increasing by 25.5% over the last three years.

Price Trends in Velachery, Chennai

Property type

In 3 years

In 5 years

In 10 years

Flats

8.8%

7.4%

35.6%

Currently, there are more than 100 residential units and plots for sale in Velachery. Velachery offers buyers a significant cost advantage. Velachery's capital costs range from Rs. 5,000 to Rs. 8,000 per sq ft which is comparatively less when compared to other parts of Chennai.

Quality of Life in Velachery

Velachery is easily accessible between IIT Madras in the northeast and developed residential areas such as Pallikaranai to the south and Taramani to the east, making it an excellent choice for homebuyers. The area is adorned with lush greenery, community parks, and a variety of amenities that enhance the living experience.

Its proximity to other important residential neighborhoods enhances its desirability. Nearby attractions include Adyar (7 km), Guindy (3.3 km), Perungudi (5 km), Thiruvanmiyur (6 km), and Madipakkam (4 km).

Economic and Employment Opportunities in Velachery

Chennai plays a major role in India's IT and commercial landscape, and Velachery is no exception. The area is home to large firms such as HCL, Zoho, TCS, Flextronics, and Sutherland Global Services, providing thousands of experts with considerable employment opportunities. The majority of these offices are located along the OMR and Grand Southern Trunk (GST) Roads, increasing the region's allure to employment seekers.

Benefits of Investing in Velachery

  • Investment Returns- With more people looking for better prospects in Velachery, the potential for good investment returns is high.

  • Rental Income Potential- 1 BHK Apartment starts at Rs.8,000 per month, 2 BHK Apartments ranges between Rs.12,000 and Rs.15,000 per month, and 3 BHK Apartments ranges between Rs.16,000 and Rs.22,000 per month.

  • Future Developments- Upcoming developments in public transportation, such as the Metrolite Line and the extension of Chennai Metro Line-5, will increase connectivity.

  • Increased Demand- The area's strong IT sector is generating demand for superior real estate, increasing both capital investment and rental revenue.

Conclusion

Many people find it difficult to afford the high cost of living in Chennai. In this context, Velachery emerges as an appealing and affordable option for property investors. Velachery stands out as a top choice in Chennai's real estate market due to its abundance of job prospects, thriving social and economic environment, outstanding amenities, and seamless connectivity.

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