Old Mahabalipuram Road paves the way for realty development

Chennai

The setting up of TIDEL Park on Rajiv Gandhi Salai or Old Mahabalipuram Road (OMR) in 2000 changed the landscape of the stretch forever, paving the way for the development of the IT corridor, as we know it, today. This development, naturally, led to the creation of a premium residential housing market along the belt starting from Madhya Kailash, all the way to Thiruporur, and beyond. OMR may have seemed like a distant suburb a few years ago, but now, it is very much a part of the city.

As Chitty Babu, MD and Chairman, Akshaya Pvt Ltd, points out, “OMR, up to Sholinganallur, is essentially an extension of the city, and should not be considered a suburb anymore. Take Velachery, for instance. Until recently, it was considered a low lying suburb that was only in the news during monsoons. But now, it’s a thriving residential and commercial zone, and very much a part of the city.”

The location of OMR – its proximity to Adyar, for example – has attracted large scale residential development here. This gives the area a distinct pricing advantage, says Chiity Babu. “The prices (per sq ft) are almost half of that in Adyar,” he adds, “So, at a distance of less than 5km from Adyar, one can procure an apartment for half the price.” Another factor that works to its advantage is its proximity to ECR. Badal Yagnik, MD, Jones Lang LaSalle, Chennai, says, “Prices on ECR are 50-60% higher than that along OMR. And both corridors are witnessing plenty of development in the residential/ commercial sectors.”

Although it was the IT sector that initially fuelled growth along OMR, it’s no longer the sole growth driver. As Badal Yagnik says, “It’s the demand for housing that has been driving growth in this area over the last few years.” He continues, “Last year, for instance, the city saw office absorption to the tune of 5 million sq ft, while this year, it is only 2 million sq ft. A large chunk of this space lies on OMR. Despite the fall in absorption rates, the demand for housing has been soaring along the OMR.”

While the stretch from Madhya Kailash to Sholinganallur has been witnessing maximum demand, even beyond Sholinganallur, the demand, though not as robust, exists. Badal says, “Prices along the Madhya Kailash-Sholinganallur belt have been increasing by 20% year-on-year. However, some of the best schools are coming up in large townships planned in the latter half of OMR.

Places like Padur, for instance, are set to grow, with malls like Marg Junction, and residential projects planned in the vicinity.” Any further development on OMR is bound to happen after the toll gate, due to non-availability of land on the stretch from Madhya Kailash to the toll gate. Chitty Babu adds that while prices (per sq ft) range around 7,500 until Sholinganallur, they are about 3,000 to 4,000 in the area from the toll gate to Thiruporur, and lesser as you move further.

Source: Times Property, The Times of India, Chennai