According to an Oxford Economics research report, Chennai is one of the 10 fastest growing economies in the world. The growing economy—driven by automobile, services, and the IT sector—has provided abundant employment opportunities to its population. The real estate sector of the city thrives on the influx of people who come to the city for jobs.
With a growing population, there is an increasing demand for infrastructural growth, mainly connectivity. Since lack of connectivity restricts residential growth, an infrastructure project acts as a key market driver in the areas where a plan has been proposed. Sometimes, the speculative prices shoot up as soon as the government announces its upcoming project. A similar effect is expected to happen when the following government projects are being implemented:
- Phase II – Chennai Metro Rail
Since the boom in IT/ITeS sectors, the city saw congested roads with increased traffic. The government came up with an efficient mass transit system that was open to the public in 2015. With the successful completion of the Phase I project, Chennai Metro Rail Limited (CMRL) was awarded the National Project Excellence Award. Now the government has proposed Phase II.
Construction period: 2020-26
With Phase I spanning 54 km, the proposed Phase II will span 118.9 km connecting the city and suburbs with its 3 corridors:
Corridor 3 – Madhavaram to SIPCOT (for 45.8 km)
Corridor 4 – Lighthouse to Poonamallee (for 26.1 km)
Corridor 5 – Madhavaram to Sholinganallur (for 47 km)
By 2025, there will be a total of 128 stations with an everyday traffic forecast of 19 lakh people. This will give Chennai, that has been predominantly dependant on buses and private vehicles, a makeover and boost the real estate prices in these areas.
- Multi Deck Elevated Corridor
In an effort to decongest the roads around the IT hubs, Tamilnadu Government has proposed a plan to set up a 3-deck elevated corridor that will merge with the metro rail. The corridor will pass through Sholinganallur, Perungudi, Siruseri and Taramani.
1st level – Elevated road
2nd level – Chennai metro rail
3rd level – Chennai metro rail at junctions
According to the proposed plan, the corridor will have several exit and entry ramps at the first level in areas like Sholinganallur junction. It will also have foot over-bridges and facilities like escalators, lighting, security, and 24X7 power supply. The plan will be implemented in 2 phases:
Phase I – Taramani to Siruseri
Phase II – Along Old Mahabalipuram Road
While this is still in the planning phase, the leading edge infrastructure will strengthen connectivity among the fast-growing IT suburbs. These suburbs, being a few of the top upcoming residential hotspots of Chennai, will grow exponentially when these projects are completed. So, in the coming years, investing in real estate on OMR will be a good decision. Along with OMR, areas like Sholinganallur, and Thalambur will also benefit.
- Chennai Peripheral Road project
The proposed road will pass through Singaperumalkoil, Sriperumbudur, Thamaraipakkam, Tiruvallur, Periyapalayam, Puduvoyal and Kattupalli. Four national highways (NH5, NH205, NH4, NH45) and eight state highways will be joined in this road decongesting the traffic that builds in highways leading to Chennai. The road will also improve container movement from Southern parts to Ennore and Kattupalli ports promoting the economic growth of the state. In addition, CCTV cameras will be placed on the road that will be fitted with flood measurement and warning system.
The following phases are planned for different sections of the stretch:
Phase 1 – From Ennore Port to Thatchur on NH-5 (25.50km)
Phase 2 – Thatchur on NH-5 to start of Thiruvallur Bypass (26.25 km)
Phase 3 – From Tiruvallur Bypass to Sriperumbudur on NH-4 (29.55km)
Phase 4 – From Sriperumbudur on NH-4 to Singaperumalkoil on NH-45 (24.85 km)
Phase 5 – Singaperumalkoil to Mahabalipuram on East Coast Road (ECR)
These areas in North Chennai were experiencing limited residential growth due to lack of connectivity. With the upcoming Peripheral Road, real estate in these areas is expected to spurt.
- Airport Expansion
While Chennai’s International airport in Meenambakkam—handling nearly 20 million passengers every year—is expected to reach saturation in a few years, there has been expansion projects underway in the airport. A second international airport also has been planned, and Airports Authority of India is looking for land to construct the greenfield airport. The ongoing airport expansion and a new airport will drive up the real estate prices in the city.
These upcoming projects will facilitate easy and smooth commute within different parts of the city. People prefer areas that are closer to their workplaces and that can be easily accessed by public transport. With these projects in the pipeline, Chennai’s real estate is expected to grow at an unprecedented rate.