Tamil Nadu Global Investment Meet 2024 sees investments worth crores of rupees coming into the state. This follows the lines of previous investor conclaves that took place in 2015 and 2019, which led to the growth of the expatriate community in Chennai.
Although these communities represent a small portion of home buyers, there is good demand for premium and premium rental living. On average, expats here spend between ₹1.5 lakh and ₹5 lakh per month (excluding maintenance) on rent. Those in the premium rental space business find it a profitable business idea because most expats stay in the city for a short period of time (maximum of five years). And in most cases, the rent is paid by the employer.
Chennai is now home to Germans, Danes, Koreans, Taiwanese and Japanese, among others. Many people from Australia, England, USA also live here. According to data shared by Guidance – the nodal agency that brings investments to Tamil Nadu – The State is home to more than 120 German business companies, more than 478 Korean business companies, 598 Japanese companies, and 80 companies from France. In addition, there are more than 60 companies based in Singapore and 16 companies from Australia. Almost every country from around the world has a presence here through some Memorandum of Understanding, or joint venture.
Vishnu Venugopalan, MD and CEO of Guidance Tamil Nadu, said the Global Investors Meet 2024 has delegates from more than 30 countries. “This is a clear indication that the expatriate movement is on the rise. Not only large multinational companies, even medium-sized companies are focusing on Tamil Nadu,” he said.
What are the cements of choice
For expats in Chennai, their preferred location to rent tends to vary based on personal preference, lifestyle, and proximity to work. According to details shared by real estate services firm Jones Lang LaSalle (JLL), some of the attractive residential areas include Anna Nagar, Mylapore, Alwarpet, Nungambakkam, Boat Club Road and East Coast Road (ECR). Gated communities and apartments in the city are preferred options.
Expats also have a variety of housing options to choose from, such as apartments, duplexes, independent houses, penthouses, and dormitories. The size of these units can range from 2,000 sq.ft. apartments for 5,000 sq.ft. bungalows, depending on the location and availability of social infrastructure. Many expat communities prefer to live in upscale neighborhoods and less densely populated developments.
Across cultures, individuals have different needs, but some communities like to stay close, says Sush Clays, Founding Partner, Welcome Home Luxury Real Estate Services. Citing some examples, he said Koreans and Japanese prefer modern luxury apartments in Alwarpet. However, the trend is also changing – large families sometimes prefer to live by the beach. This has made ECR very popular, regardless of the expat’s country of origin. “South Asian expats expect the highest standard facilities. Europeans like it too, but sometimes they can be attracted to traditional houses for the cultural experience of urban-style living that will be their new home. But shabby and substandard houses never cut it, said Clays.
Niranjan Hiranandani Photo Credit: Custom arrangement
“Expats from western economies tend to choose a minimalist and modern design style, which prioritizes functionality. Asian expats prefer traditional and comfortable elements to create a home atmosphere related to their cultural roots.”Niranjan HiranandaniChairman, Hiranandani Group
Hiranandani Park in Oragadam has more than 1,000 expatriates from all over the world, including South Korea, Japan and Germany. This particular property, which is close to Chennai’s tech and auto industry corridor, also houses Danish, Chinese, and Taiwanese residents. Niranjan Hiranandani, Chairman of the Hiranandani Group, said, “Expats from western economies tend to choose minimalist and modern design styles, which prioritize functionality. Asian expats prefer fun elements to create a home atmosphere that is connected to their cultural roots. The expat community prefers home which is close to the workplace, easy to travel, a safe place, and a vibrant F&B place serving delicious cuisine.
G. Diliban | Photo Credit: Custom arrangement
“French expats prefer homes with personality and charm. They appreciate architectural features like courtyard gardens, wrought iron balconies, and intricate moldings.G. Diliban Ethical Developers
A carefully designed space is a draw. G. Diliban of Etica Developers, a company whose main focus is the luxury segment, said, “French expats prefer homes with personality and charm. They may appreciate architectural features like courtyard gardens, wrought iron balconies, and intricate moldings. People- foreigners prefer to have access to a well-designed terrace where they can take a leisurely walk, do yoga, or meditate in peace.The apartments owned by the Etica group house expats from the US, UK, Australia, Germany, France and Japan .Diliban says most are furnished or semi-furnished and expats travel with minimal luggage.
Rohini Manian Photo Credit: Custom arrangement
“Usually people in higher roles like CXO have big budgets. The rest ask for furnished houses.”Rohini Manian Managing Director, Global Adjustments Services Pvt. Ltd.
About five different expats The Hindu said for this article said that they came in with very few things moving all the furniture from the country of origin is an expensive affair.
Rohini Manian, Chief Executive Officer of Global Adjustments Services Pvt. Ltd., a relocation and realty services company, said this depends on the relocation allowance provided by the company you work with. “Usually people with higher roles such as the Chief Experience Officer have a big budget. The rest ask for furnished houses,” he said.
Adeline Graham Photo Credit: Custom arrangement
“Most expats choose a furnished place, so they buy table lamps, side tables and other accessories for the interior.”Adeline GrahamDirector, Fern & Ade
Adeline Graham from France, who is also the Director of Fern & Ade, a company that brings luxury European home style to Chennai with a focus on Scandinavian, French and European design, says expats prefer accessories, especially lighting. Most of them choose a place with furniture so that they can buy table lamps, side tables and other accessories for the interior.
Miyata Kenji Photo Credit: Custom arrangement
“When it comes to Japanese people, they prefer to live near the office or near the school. Safety and security are the two main things we look for.Miyata KenjiDeputy Consul General, Consulate General of Japan in Chennai
Miyata Kenji, Deputy Consul General, Consulate General of Japan in Chennai, said, “When it comes to Japanese people, they prefer to live close to work or close to school. Safety and security are the two main things we look for. Telling about his own experience when moving to the city , he said that a local real estate agent who can be contacted through his office helped him get a house. “I saw more than 20 apartments,” he said find a small place. Many families live near the industrial city Onehub Chennai. A Japanese working in Sri City (near Chennai) lives in Anna Nagar. There are more than 700 Japanese in Tamil Nadu and 90% of them live in Chennai.
In the past few years, Tamil Nadu has also become home to several German companies such as Daimler India Commercial Vehicles (DICV), BMW, ZF Automotive, Siemens Energy, Schwing Stetter, ZF Wind power, DHL Express, Schaeffler, and BASF Catalyst. Agents involved in helping expats choose their homes say the German population is low in Chennai because most of their companies are run by Indians. “When it comes to choosing a home, it’s different for everyone,” he said.
Sources helping the Koreans find housing said that like the Tamils, they also traveled together as a family. There are many Korean families in Alwarpet, MRC Nagar and Boat Club Road. He prefers the city and that is why you will find him living in an apartment near the Phoenix Mall. “Many are close to Sriperumbudur – that’s where you can find major car companies. On average, they spend ₹2 lakh to ₹5 lakh depending on the designation and what the company offers. For those in higher roles, housing allowance is part from the salary package,” the source said.
A growing expatriate community has also helped the commercial real estate space. Today, Chennai and Tamil Nadu in general have several restaurants, bakeries and shops that cater to every citizen of the state. Those in the real estate segment say that in the next 10 years the expat community will double creating more demand for space.
