The Tamil Nadu Global Investment Meet 2024 saw investments worth several crores of rupees coming into the State. This follows in the line of previous investors’ conclaves that happened in 2015 and 2019, which has resulted in the steady growth of the expatriate community in Chennai.
Despite the community being a small section of homebuyers, there is a good demand for high-end and premium rental living. On an average, expats here spend anywhere between ₹1.5 lakh and ₹5 lakh per month (excluding maintenance) on rentals. Those in the premium rental space business are finding this a lucrative business idea as most expats stay in the city for a short duration (a 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. A large number of people from Australia, the U.K., the U.S. also live here. According to data shared by Guidance — the nodal agency instrumental in bringing investments into Tamil Nadu — the State is home to over 120 German business establishments, over 478 Korean business firms, 598 Japanese companies, and 80 firms from France. Apart from this, there are over 60 Singapore-based companies and 16 firms from Australia. Almost every country from across the globe has its presence here through some Memorandum of Understanding, or joint venture.
Vishnu Venugopalan, MD and CEO of Guidance Tamil Nadu, said that the Global Investors Meet 2024 had delegates from over 30 countries. “This is a clear indication that the expat movement has gone up. It’s not just the large MNCs... even mid-sized firms have set their sights on Tamil Nadu,” he said.
What cements their choices
For expats in Chennai, preferred locations for renting tend to vary based on personal preferences, lifestyle, and proximity to workplaces. According to details shared by real estate services firm Jones Lang LaSalle (JLL), some attractive residential areas include Anna Nagar, Mylapore, Alwarpet, Nungambakkam, Boat Club Road and the East Coast Road (ECR) stretch. Gated communities and apartments within the city are the preferred choices.
Expatriates also have a variety of housing options to choose from, such as apartments, duplexes, standalone houses, penthouses, and dormitories. The size of these units can range from 2,000 sq.ft. apartments to 5,000 sq.ft. bungalows, depending on their location and the availability of social infrastructure. Many expat communities prefer to live in upscale neighbourhoods and developments that have a low population density.
Across cultures, individuals have different needs, but some communities like to stay close together, said Sush Clays, Founding Partner, Welcome Home Luxury Real Estate Services. Citing a few examples, she said Koreans and Japanese prefer the modern luxury apartments of Alwarpet. However, that trend also changes — large families sometimes prefer the joy of beachside living. This has made ECR a highly sought-after stretch, irrespective of the country the expat is from. “South Asian expats expect the highest standard of amenities. Europeans prefer them too, but can sometimes be charmed by a traditional home for the sheer cultural experience of living in the style of the city that will be their new home. But shabby, sub-standard housing never makes the cut,” Clays pointed out.
Niranjan Hiranandani | Photo Credit: Special arrangement
“Expats from western economies tend to choose minimalist and modern design styles, which prioritise functionality. Asian expats prefer traditional and comfortable elements to create a homely ambience tied to cultural roots. ”Niranjan HiranandaniChairman, Hiranandani Group
Hiranandani Parks at Oragadam houses more than 1,000 expatriates from around the world, including South Korea, Japan and Germany. This particular property, which is close to the tech and auto industrial corridors in Chennai, also houses Danish, Chinese, and Taiwanese nationals. Niranjan Hiranandani, Chairman of the Hiranandani Group, said, “Expats from western economies tend to choose minimalist and modern design styles, which prioritise functionality. Asian expats prefer comfortable elements to create a homely ambience tied to cultural roots. The expat community prefers homes in proximity to workplaces, ease of travel, secured space, and vibrant F&B places that serve their palate cuisine.”
G. Diliban | Photo Credit: Special arrangement
“French expatriates prefer homes with personality and charm. They value architectural features like courtyard gardens, wrought-iron balconies, and elaborate mouldings.”G. Diliban Etica Developers
Thoughtfully designed spaces are a draw. G. Diliban of Etica Developers, a firm whose primary focus is the luxury segment, said, “French expatriates prefer homes with personality and charm. They might value architectural features like courtyard gardens, wrought-iron balconies, and elaborate mouldings. Foreigners value having access to a well-designed terrace where they may take leisurely walks, do yoga, or meditate in peace.” Apartments owned by Etica group houses expats from the U.S., the U.K., Australia, Germany, France and Japan. Diliban said that most are either furnished or semi furnished and expats move in with minimal baggage.
Rohini Manian | Photo Credit: Special arrangement
“Typically people in higher roles like the CXOs have a huge budget. The rest ask for a furnished house.”Rohini Manian Chief Executive Officer, Global Adjustments Services Pvt. Ltd.
Around five different expats whom The Hindu spoke to for this article said that they came in with very few things as moving all the furniture from their home country was an expensive affair.
Rohini Manian, Chief Executive Officer of Global Adjustments Services Pvt. Ltd., a relocation and realty services company, said that this depends on the moving allowance that is given by the company they work for. “Typically people in higher roles such as Chief Experience Officers have a huge budget. The rest ask for a furnished house,” she said.
Adeline Graham | Photo Credit: Special arrangement
“Most expats opt for furnished spaces, so they come buy table lights, side tables and other accessories for their interiors.”Adeline GrahamDirector, Fern & Ade
Adeline Graham from France, who is also the Director of Fern & Ade, a firm that has brought luxury European homestyling to Chennai with focus on Scandinavian, French, and European design, said that expats are more interested in accessories, especially lights. “Most of them opt for furnished spaces so they come buy table lights, side tables and other accessories for their interiors.”
Miyata Kenji | Photo Credit: Special arrangement
“When it comes to the Japanese, they prefer living close to work or near a school. Safety and security are the two key 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 the Japanese, they prefer living close to work or near a school. Safety and security are the two key things we look for.” Narrating his own experience on moving to the city, he said that a local property agent whose contact he got through his office helped him get a house. “I saw over 20 apartments,” he said. According to Kenji, “Those who come with family look for a two-three bedroom space while others who come alone look for a small space. A lot of families live near the industrial township Onehub Chennai. The Japanese who work at Sri City [near Chennai] live in Anna Nagar.” There are over 700 Japanese in Tamil Nadu and 90% of them reside in Chennai.
In the last 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. An agent involved in helping expats choose their homes said that the German population is less in Chennai as most of their firms are headed by Indians. “While selecting a home, it differs from person to person,” he added.
A source who helps Koreans find homes said that just like Tamilians, they also travel together as a family. There are many Korean families in and around Alwarpet, MRC Nagar and Boat Club Road. They prefer townships and that is why you will find them residing in apartments near Phoenix Mall. “Many of them are near Sriperumbudur — that’s where you can find major automobile firms. On an average, they spend ₹2 lakh to ₹5 lakh depending on their designation and what the company offers. For those in higher roles, housing allowance comes as a part of their salary package,” the source said.
The growing expat community has also helped the commercial real estate space. Today, Chennai and Tamil Nadu as a whole have several restaurants, bakeries and shops catering to each of these nationalities. Those in the real estate segment say that in the next 10 years the expat community will increase two-fold creating more demand for space.
