The much-touted Outer Ring Road being executed by the CMDA (Chennai Metropolitan Development
Authority) is more than just an expressway which connects North Chennai to the South. It is a
comprehensive mass rapid transportation corridor. Of the 122metre corridor that has been acquired for
the project, the road occupies a mere 50metres. The balance 20 metres wide space in the middle will be
earmarked for bus rapid transit and an elevated rail corridor. The 25metre wide corridor on both sides
will be the development zone comprising residential, commercial and retail establishments bringing in
organized expansion of the City. So, it is in no way comparable to OMR, in fact it is much superior
masterplan and have greater economic potential in future. An investment along the corridor will surely
see huge appreciation. Many residential projects are expected once the project is complete as it will
improve connectivity with the industrial and knowledge parks located here and the rest of the city.
The over Rs. 4,000 crore ORR [Outer Ring Road] project in Chennai being developed with funding from JICA [Japan International Co-operation Agency] is all set to outshine the last major road infrastructure project executed by CMDA [Chennai Metropolitan Development Authority] - OMR. Many of the planning errors of OMR have been rectified and the master plan is better articulated with a long-term horizon in mind. It’s been made more future proof. ORR is being developed as a multi-modal corridor having BRTS Bus Rapid Transport System, Elevated Rail Corridor and Dedicated Emergency Services Lanes. The road has well planned rapid exit ways to avoid bottlenecks at major intersections with National Highways. [ORR crosses and connects 4 major national highways] Large satellite townships, commercial and retail areas have been planned on PPP model. Such visionary zeal and high intensity planning has never been a part of the OMR development. The residential boom on the corridor is expected to overshadow the former.
The ORR [Outer Ring Road] is the single largest infrastructure project being executed by the CMDA [Chennai Metropolitan Regional Development Authority] in Tamil Nadu. The 62 km long multi-modal transportation project initiated in the year 2010 is nearing completion with the second phase being scheduled for opening in early 2018. The total project cost is over Rs.12,000crores and has been largely funded by JICA [Japan International Cooperation Agency]. Once the same is inaugurated, it will provide rapid connectivity for people in North Chennai to the rest of the city. Not just that it would drastically cut travel time to the Chennai International Airport. One could reach it in 20 -25 minutes flat. South Chennai and OMR would be accessible in under 40 minutes! The rapid exit ways would allow to access any part of Chennai city without having to travel through the congested PonamalleeHigh Road or the Kolkata Highway. Massive industrialization is expected at the northern end of the corridor. To cater to this connector roads are being developed in anticipation to them being feeder routes to the ORR. Development will impregnate itself along these stretches too. The Thachhur – Ennore National Highway is one such example. It will provide as an important connector to the ORR and L&T Ship Building, Katupali and Ennore Ports.Residential development in areas such as Ponneri where the corridor ends would surely see huge traction in the near future.
In fact, it will be better! The 62km Outer Ring Road which extends from Vandalur in South Chennai to Minjur in North Chennai will connect the Chennai City like no other. Travel time from one end of the city to the other which today is in excess of 2 hours will be possible in 30-40 minutes. This will allow for commercial development in North Chennai where huge tracts of land have been earmarked for major developments such as industrial parks, medi-cities, knowlege parks and logistic hubs. Sri City will get better connected with the city as will be the recently announced Mahindra World City, Ponneri (being developed jointly with Sumitomo). JICA is planning to invest close to Rs.40,000crores to develop the Gummidipundi SIPCOT while Adani is planning an ultra-modern logistics hub. With over 40,000 job opportunities being created over the next 5 years, residential demand is bound to boom and the development along the corridor is expected to outpace that of OMR!
The Outer Ring Road being developed by CMDA will be the single largest influencer of real estate in North Chennai. With its scheduled completion early 2018, it will not only provide seamless connectivity to the rest of the city cutting down travel time by more than half, but the economic corridor being developed along it will create huge job opportunities. Many large developments are awaiting its completion. Mahindra World City II a 1,500 acre integrated township development is being planned at Ponneri as is Sun Pharma planning an 800 acre Pharma City. Adani is creating a Logistic Hub which will leverage ORR connectivity to not just Chennai but adjoining cities in Andhra Pradesh, Telangana and Karnataka. With Sri City, Katupali Port, Ennore Port and L&T Ship Building already functional, huge job opportunities would get created. More than 40,000 new jobs are expected to be created in the next 5 years alone. Rental Housing demand is bound to surge. No wonder not only many Chennai but even National levelReal Estate Developers are planning large integrated townships in and around Ponneri which is the hub of development.
Any major infrastructure development, coupled with job creation opportunities always leads to a huge appreciation in residential demand. The same is happening in North Chennai. The development of ORR (Outer Ring Road) with its multi modal facilities is just the starting point. It would connect the North to the rest of the City and beyond bringing down travel time to less than half. Connector roads are being created to enhance the potential of the road. Leveraging this infrastructure many major projects are on the anvil. Mahindra World City II (Ponneri) is expected to better its flagship development at Chengalpet. It would invest close to Rs.4000 crores in the initial years and eventually create an economy ten times the initial investment. JICA is poised to invest Rs. 40,000crores in GummidipundiIndustrial belt - SIPCOT. Katupali Port, Ennore Port, L&T Ship Building have seen massive investments from their groups running into several thousands of crores. With this, huge job opportunities are being created and over 40,000 jobs are expected to be created in the next five years. This would lead to an immediate surge in rental demand and consequently lead to quality residential development. A residential boom is just around the corner in North Chennai.
The 1,500-acre Mahindra World City II Ponneriis being master planned similar to its flagship development at Chengalpet in South Chennai. This integrated business city is expected to create huge job opportunities for knowledge workers. The development at Chengalpet has seen Infosys, Capgemini, BMW, Braun, Renault Nissan, Wipro as some of its blue-chip economy drivers. The list is expected to be bettered in Ponneri. With thousands of job opportunities being created, the immediate micro-market is bound to witness a residential boom to cater to the influx. Today quality residential spaces are limited so the immediate fallout would be a huge surge in rental rates. There is a lot of catching up that the micro-market has to do in terms of residential development to cater to this potential.
Among the various micro markets, those in South Chennai have witnessed a real estate boom in recent years. All thanks to one large infrastructure project - the OMR and setting up of the IT corridor along it by the government. Residential rates in the vicinity have soared 10 times in the last 10 years! For example, Velachery, a suburb just off the corridor has seen residential rates zoom from Rs. 3,000/sq.ft. to Rs. 12,000/sq.ft. in the period.Meanwhile, in Perungadi which was once trading at Rs.1,000/sq.ft.; rates today touch as high as Rs.8,000/sq.ft. However, the best is now behind them. Henceforth, only organic growth will take over. Meanwhile, North Chennai has been in the shadow for long. Lack of government attention being the key reason.All that is all set to change. The ORR (Outer Ring Road) which is being developed by CMDA [Chennai metropolitan Development Authority] will provide the much needed high speed connectivity to the region bringing it within easy access to the population. Mahindra World City II, Sri City, SIPCOT at Gummidipundi, Katupali and Ennore Ports will collectively plough in over Rs. 100,000 crores in investments leading to massive job creation. Over 40,000 jobs will be created in the next 5 years alone. Needless to say, rental markets will boom, owing to short supply of quality inventory and the focus of real estate players will shift North to capture the unfolding opportunity. If real estate investments have to be made, look North.
