In 2025, South Chennai continues to be one of the most active real estate belts, especially with the growth of IT corridors and infrastructure. Among the top contenders, Medavakkam, Perumbakkam, and Sholinganallur are three key locations that offer a mix of affordability, connectivity, rental demand, and future growth.
This guide will help homebuyers and investors understand which of these three localities is the best investment option in 2025 based on real-time trends.
1. Location Overview
Sholinganallur
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A prime junction along the Old Mahabalipuram Road (OMR).
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Major IT and tech companies (Infosys, Wipro, TCS, HCL) surround the area.
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Seamless access to ECR, Velachery, Pallikaranai, and Thoraipakkam.
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High density of commercial and residential projects.
Medavakkam
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Located between Velachery-Tambaram Road and OMR.
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Fast-growing suburb with connectivity to GST Road, OMR, and Velachery.
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Proximity to Pallikaranai Marsh, making it environment-friendly.
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Upcoming Chennai Metro Phase II expected to boost property values.
Perumbakkam
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Nestled between Sholinganallur and Medavakkam.
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Slightly interior but emerging rapidly with multiple gated communities.
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Accessible to IT corridors but with comparatively less traffic and noise.
2. Connectivity & Transportation
| Location | Highlights |
|---|---|
| Sholinganallur | Excellent road network, bus and share-auto access, easy commute to IT parks. |
| Medavakkam | Velachery-Tambaram Main Road, Medavakkam Junction, close to the proposed metro. |
| Perumbakkam | Connected via Medavakkam Main Road & Perumbakkam Main Road, but inner roads need upgrades. |
Best for Connectivity: Sholinganallur
Fastest Developing Infrastructure: Medavakkam
3. Property Prices (2025 Average Rates)
| Area | Avg Price per sq.ft | 2BHK Range | 3BHK Range |
|---|---|---|---|
| Sholinganallur | ?7,000 – ?9,000 | ?75L–1.2Cr | ?1Cr–1.5Cr |
| Medavakkam | ?5,500 – ?6,500 | ?55L–85L | ?75L–1.1Cr |
| Perumbakkam | ?4,800 – ?6,000 | ?45L–75L | ?65L–95L |
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Sholinganallur is the costliest due to its commercial proximity.
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Medavakkam offers better mid-range options.
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Perumbakkam is still budget-friendly.
Best for Budget-Friendly Investment: Perumbakkam
4. Rental Yield & Investment Returns
| Location | 2BHK Rent Range | ROI Potential | Demand Source |
|---|---|---|---|
| Sholinganallur | ?20k – ?35k | High | IT professionals |
| Medavakkam | ?15k – ?25k | Medium-High | Working families |
| Perumbakkam | ?12k – ?18k | Medium | New tenants, bachelors |
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Sholinganallur fetches strong rent due to walk-to-work advantage.
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Medavakkam is catching up as a family-centric rental hub.
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Perumbakkam is affordable but rental yield is slightly lower.
Best for Rental Returns: Sholinganallur
5. Social Infrastructure
| Feature | Sholinganallur | Medavakkam | Perumbakkam |
|---|---|---|---|
| Schools | BVM, Narayana, Velammal | DAV, Zigma, Vista Billabong | Bharathi Vidyalaya, PSBB |
| Hospitals | Gleneagles, Chettinad, Apollo | Global, Kamakshi, Arun | Annai Arul, New Life |
| Shopping Malls | Marina Mall, Vivira Mall | Grand Galada, Phoenix (nearby) | Compact local markets |
| Safety & Water | Good, slightly crowded | Safe, planned zones | Average, some areas developing |
Best for Family Living: Medavakkam
6. Legal & RERA Approved Projects
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All three localities have RERA-approved projects from reputed builders (Casagrand, Urban Tree, Radiance, TVS Emerald, DRA).
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Sholinganallur and Medavakkam have more premium and luxury options.
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Perumbakkam has a growing number of budget and mid-income segment projects.
7. Future Growth Potential
Sholinganallur:
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Already saturated in some pockets.
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Still holds potential for high rental yield and resale.
Medavakkam:
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Metro Phase II to increase property rates.
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Flyovers and civic infrastructure boost livability.
Perumbakkam:
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Ideal for long-term investment (5–8 years).
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Gaining traction as affordable alternative to Sholinganallur.
Best Long-Term Investment Potential: Medavakkam / Perumbakkam
Final Recommendation – Where Should You Invest?
| Buyer Type | Ideal Choice | Reason |
|---|---|---|
| IT Professionals | Sholinganallur | Proximity to tech parks, walk-to-work |
| Middle-Class Families | Medavakkam | Balanced pricing + infrastructure + schools |
| Budget Investors | Perumbakkam | Affordable with future appreciation scope |
| Rental Yield Seekers | Sholinganallur | High ROI and tenant demand |
| Long-Term Investors | Medavakkam / Perumbakkam | Growth corridors with metro, civic upgrades |
All three locations have strong merits, but the best choice depends on your budget, purpose (own stay vs investment), and timeline:
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Sholinganallur – For premium lifestyle, rental income, and IT proximity.
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Medavakkam – For balanced living and future appreciation.
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Perumbakkam – For budget investment with long-term potential.
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