Corridor of growth RAJIV GANDHI IT EXPRESSWAY(OMR) Corridor Description and Rating Areas Included: , Taramani, Semmancherri, , Thalambur, , , Thiruporur, Padur, , , , Okkiyam-Thuraipakkam

Fig 1: Map of the corridor 02 Corridor of growth (COG)

About the Corridor he Rajiv Gandhi IT Expressway – better Adyar and all the way till Pre-Toll, the one with connects at Panaiyur. Finally, the - known as Old Mahabalipuram Road highest demand as this part is close to Central Kelambakkam Road provides another T(OMR) - is an IT corridor developed by and which have good social connection between GST and OMR. the Government of under the infrastructure. The toll area and the road until Since the OMR is the only main road ITEL-IT Expressway Ltd which is responsible Sholinganallur Intersection has the highest connecting all the localities in the corridor, it for implementation and maintenance of the concentration of office spaces and hence, good is generally crowded during peak hours and corridor. Although the corridor was initially demand for rental residential spaces. The last long traffic jams before the toll are a common planned for IT/ITES companies only, a number part of the corridor is less populated with sight. A metro train line running parallel to the of residential complexes have come up. The large tracts of empty spaces. The demand in OMR will reduce traffic here. A detailed project 45-km long corridor stretches all the way this region is low due to which property from report is being prepared to propose a metro upto Mahabalipuram with a new 1500 acre prominent developers is available at a very from to Siruseri. Although this Japanese Township being setup there. lower prices. line will not be running parallel to the OMR, Apart from residential and office spaces, the In terms of connectivity, currently, the OMR, it will reduce travel time between the SIPCOT corridor also has large hospitals, residential a 6-lane highway is connected to the rest of SEZ in Siruseri to the Chennai CBD. schools and shopping establishments coming Chennai through the in Adyar. The corridor is preferred for residential purpose up along the OMR. It is well connected to the The 200-ft -Thuraipakkam Road by mid-level employees working in the IT/ ECR, which runs parallel to OMR, and GST with connects the corridor to GST. There are plans ITES segment who prefer 2 or 3BHK units only. four main link roads running across. Since the to extend this road to ECR by building a bridge Luxury and premium projects are generally entire corridor has been promoted and setup over the and connect it not so much in demand (5%). The corridor has in the last decade, it has the highest demand at , which will help commuters. almost 57% of the current inventory in stage. among all corridors. The Perumbakkam Main Road connects to This has prompted many developers to slash and the Velachery- Property prices have appreciated almost prices and also offer freebies on purchase in a Road connects to GST near Tambaram Railway 200% since the corridor was setup. This can few projects. Station. This road continues to ECR and be divided into three parts: Areas closer to

Overall Connectivity Social Infrastructire Security/Water

Properties available in the corridor he corridor offers a wide range of the Rs 20-40 lakh segments. People buying shows that 57% of properties in this corridor properties in the affordable to premium properties here are in the mid-level positions are in the ready-to-move-in category which Tsegments. Over 37% properties fall in and have their offices here. Fig 4 shows that means that it is a buyer’s market as many the category of Rs 40-60 lakh followed by 50% properties are 2BHK units and 39% are developers would be willing to dispose the around 15% in the Rs 60-80 lakh and 32% in 3BHK units available here. Interestingly, Fig 3 ready-to-move-in inventory at the earliest.

Fig 2: Distribution of properties by price Fig 3: Distribution of properties by delivery status Fig 4: Distribution of properties by bedroom configuration 03 Corridor of growth (COG)

Table 1: Sizes and prices of flats available for As explained prices in the corridor move north on this road is catering to mid and premium various room configurations as one moves towards south of the OMR. So segments, there are a few penthouses and Sales Price Covered Area an investor will get better value for money at ultra luxury apartments which are available ( Lacs) (Sq.ft) areas beyond Siruseri, as prices are affordable. upwards of Rs 4 crore. As one moves south of 1 BHK 14-45 500-1000 So, typically a Rs 40 lakh which will buy a Sholinganallur, it is observed that the floor 2 BHK 18-200 525-2231 1BHK near the start of OMR close to Adyar, will area/built-up area of apartments is typically 3 BHK 30-250 900-2800 be able to buy a 2BHK closer to Sholinganallur. larger and there are 2BHK units with super It is seen that although much of the offering built-up area of 1800 sq ft. 4BHK and Above 75-560 1600-6700 Best sectors to invest in a home Based on rental demand in sectors

Fig 5: Top localities by consumer for renting a house ithin the corridor, the locality and two SEZs. Rental yield shows the localities, ranging from 3-6%. From the graph with the highest rental demand amount of rent that can be generated from a it is evident that properties at Sholinganallur, Wis Sholinganallur. This has good property in a year in terms of sale price. The that has good connectivity to Medavakkam as demand as it is very close to two big colleges OMR Corridor has high rental yields at some well as to the ECR, offers highest rental yield. Based on home buying demand in sectors

Fig 6: Top 10 localities by consumer for buying a house 04 Corridor of growth (COG)

n the case of demand for buying homes, 2BHK properties here fetch good rental returns has good social infrastructure and hospitals. Sholinganallur has the highest share. and have limited availability in the corridor. Perumbakkam has good water supply IThis is mainly due to its connectivity to Perumbakkam, located next to Sholinganallur, compared to other localities in the corridor as Medavakkam and ECR. It is also observed that has the next highest demand as the locality it has a 200 acre fresh water lake located here.

Best bedroom configurations to buy Preferred buying and renting options

Table 2: Demand distribution for buying and renting t is observed from the given tables that 1% of the people are looking to rent out 3BHK Buying Renting either for rent or sale, the number of 2BHK units. Interestingly, although only 2% of the Total (BHKs) Total (BHKs) Iapartments are the most preferred. About people are looking at buying 4BHK and higher 1 BHK 8% 8% 55% of the people looking to buy and 63% units, about 29% of the people looking at 2 BHK 55% 63% of the people looking to rent are considering rental properties are considering this category. 2BHK units. It is also observed that most of the The property options available in this corridor 3 BHK 35% 1% 3BHK apartments that are purchased in the are for all types of property but the demand is 4 and Above 2% 29% corridor are mostly for self-occupation as only overall for 2-3 BHK. Price changes and future prospects Historic Price movement Corridor Average Price Rs/sqft Table 3: Historical Price changes

6 monthly change Yearly change 1% 0% ajiv Gandhi IT Expressway corridor has seen that apart from a slide of prices Rfrom the Q4-2014 levels, prices have remained largely stagnant over the last one year throughout the corridor. Prices dipped to an all-time low in the 2nd quarter of 2015 but has risen since then and reached back to Q1-2015 levels. Demand has been steady in this corridor and is mainly from the employees working in the IT/ ITES companies in this corridor who are keener to purchase 2-3 BHKs in the mid segment price range. Prices have also been lower in areas that were highly affected due to the floods of December 2015.

Fig 7: Historical Price changes of corridor 05 Corridor of growth (COG)

Price movement for top localities by Consumer Preference he last quarter has witnessed the prices moving up for four out of the top five localities by consumer demand. Areas such as Kelambakkam, TNavalur, Sholinganallur and Padur have seen about 2-5% increase in prices over the last quarter. The demand in all these areas is due to the employees working in the IT/ ITES companies in these localities who are looking at 2 BHKs in the mid segment price range. Lower lying areas such as Perumbakkam have seen reduction in prices by 1% as buyers fear that the area may be prone to water logging during the monsoon season.

Fig 8: Price changes in top localities by consumer demand

Master Plan

t is observed that large tracts of OMR are designated for the pupose of High Tech development which includes Ispaces for IT/ITES industry. Vast localities in the corridor are also designated green areas and semi-water bodies such as the Pallikarnai marshland have all been marked as Green areas in the corridor. Although the corridor stretches till Mahabalipuram, but in its current state residential complexes Fig 9: Land use of various localities in the corridor start reducing after Kelambakkam and post Thiruporur the road becomes a 2-lane highway to Mahabalipuram. 06 Corridor of growth (COG)

Infrastructure Updates l One Hub at Chennai which is a 1500 l A detailed project report (DPR) is being infrastructure. The flooding in December 2015 acre Japanese Township setup in carried out currently to setup a new metro has prompted a few companies to rethink collaboration with Ascendas, a Singapore- line between Madhavarm-Siruseri which their expansion plans in this corridor and based industrial and commercial space is a 41-km long proposed metro line to are looking at GST as a more secure location. developer; Ireo, a real estate developer; connect Red Hills residential area within Water, sanitation and better connectivity have JGC Corporation, a Japanese engineering the OMR been the top prioity for most of the builders company; and, Mizuho Bank, Japan, will A recent visit to the corridor has revealed that in this location. Hopes are also pinned on the also have residential areas earmarked. there is a lot of activity happening in terms 1500 acre Japanese Township coming up in Once this area will be developed and more of residential and commercial spaces coming Mahabalipuram and that the realty market clients setup their plants in the township, up. But there is a slight insecurity among will see some upward movement when more the southern parts of OMR will see rise in consumers regarding the current state of clients start moving to One Hub and when the demand proposed 100 acre residential project kicks off. IN NEWS Thoraipakkam emerges as a real estate hotspot Siruseri, is just 4 km from Navallur, while the ELCOT SEZ located in Sholinganallur is situated 10 km from the area. The area has good Okkiyam Thoraipakkam is emerging as an attractive location for properties for home finders looking for rent. property buyers. The area is connected to Chennai’s very first six-lane IT Expressway on the OMR is the new address for most of the IT n Source: Magicbricks Bureau global giants and has gained significant importance in the real estate Know Chennai’s fast emerging hotspot for investment market. Located very close to the marsh, Thoraipakkam is spread across a stretch of three kilometers, starting from Perungudi. The development of social and physical infrastructure has transformed This area has seen substantial growth in the last 10 years. The area is Velacherry into one of the most sought after areas for realty growing fast and there is an immense opportunity for home buyers in investment. The area is in the close proximity to the IT corridor, this locality. established social and physical infrastructure and civic amenities makes the area popular. Velachery in dominates n Source: The Times of the property buyer’s preference for all property types and budget Velachery considered being the most preferred locality segments. The area has good railway connect and flyovers providing road connectivity. Velachery is located in South Chennai and is close to IIT Madras. There are multiple factors due to which the area soars high on popularity. n Source: Magicbricks Bureau Velachery is a very good location to live as it is well-connected Know the affordable, premium rental markets in Chennai to all significant parts of the city such as Pallavaram, Tambaram, Thiruvamyur, , , Medavakkam and Thoraipakkam. The rental market of Chennai seems to be faring better than the Velachery has evolved as one of the well-developed residential capital market. Which means, if you have a property leased out then localities of Chennai offering everything a buyer wants. Right from the monthly returns have increased over the course of time. The high-end commercial set-ups, to proximity to IT hubs, retail stores, localities such as Old Mahabalipuram Road (OMR), Kelambakkam and and residential homes is exactly what the area is offering. Thoraipakkam are the most affordable places to stay on rent. Renting in the premium localities as mentioned can be a tad bit expensive. So n Source: Magicbricks Bureau instead it is advisable to consider investing. Local bus transport gives Navalur offers highest rental returns way to smooth accessibility. Shared autos are also a popular transport facility and reduces the cost . The capital values of properties in these Much of the demand both for renting and buying apartments comes localities are higher and it makes sense for people to opt for rental from the IT professionals. SIPCOT IT Park, the largest Information housing units more than buying properties at this point in time. All Technology Park in Asia, located in Padur, Siruseri, is just 4 km from three localities have a developed social and physical infrastructure. It Navallur, while the ELCOT SEZ located in Sholinganallur is situated has closeness to the IT corridor, City centre, schools, hospitals, parks 10 km from the area. Much of the demand both for renting and and markets. buying apartments comes from the IT professionals. SIPCOT IT Park, the largest Information Technology Park in Asia, located in Padur, n Source: Magicbricks Bureau MOST POPULAR PROJECT in Old Mahabalipuram Road (OMR) http://magicbricks.com/investment-hotspots/chennai/old-mahabalipuram-road/

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