Rajiv Gandhi Salai and GST Road have always been touted as the prime investment destinations of the city. While they are promising, no doubt, the reality is while the former’s potential continues to be not realised, the latter faces a demand-supply mismatch. N. Nandakumar, president – Tamil Nadu, Confederation of Real Estate Developers' Associations of India (CREDAI), explains that Rajiv Gandhi Salai (popularly referred to as OMR) is grappling with issues of basic infrastructure. “People continue to depend on lorries for drinking water, and sewage disposal is dependent on badly maintained STP plants provided by developers,” he says. As for GST Road, it appears to suffer on account of its imitation of the Rajiv Gandhi Salai model. “This stretch is dependent on the manufacturing sector for development,” he explains. “Developers, however, don’t seem to take the local demands into consideration. The low-end units are in demand here, while the upmarket apartments continue to remain neglected.” Clearly, buyers are now going to look beyond Rajiv Gandhi Salai and GST Road.
So what other pockets of the city can we pay attention to? Recent developments have brought two destinations to the fore – Chembarambakkam and its neighbourhood on the Bengaluru-Chennai highway, and Ponneri and surrounding areas in the north of Chennai.
The highway
Area: Chembarambakkam
Where: South-west of Chennai, on the Chennai-Bengaluru highway
Reason for promise: Road development (NH4 and Outer Ring Road)
Chembarambakkam, in the vicinity of Kuthambakkam and Poonamallee, lies to the south-west of Chennai. The key to the growth of these areas is the NH4 becoming part of the Golden Quadrilateral, and the improved connectivity offered by the Tambaram-Manali Chennai Bypass Road.
In addition, the recently opened Outer Ring Road from Vandalur to Nemilichery has further improved Chembarambakkam’s accessibility.Sarita Hunt, Managing Director – Chennai and Coimbatore, Jones Lang LaSalle, a global real estate services firm, explains that this is why there are at least 10 residential projects under construction in Chembarambakkam with over 200 units each. “As we know, road infrastructure is a key catalyst to real estate development,” she says. “The projects are all selling between Rs. 3,300 and Rs. 4,500 per square feet here and are quite affordable.”
Among the projects coming up in the neighbourhood are Godrej Properties’ Godrej Palm Grove, a 484-unit project spread across 12.5 acres, and Lancor Holdings’ Town & Country Villas, a 350-villa project built across 55 acres, and Townsville with 144 apartments of which 90 have already been sold.
While this is Lancor’s first project in Sriperumbudur (a few kilometres from Chembarambakkam), Godrej’s project in Chembarambakkam is its first ever in the city. “The area’s location on the Chennai-Bengaluru highway helps its growth,” says Girish Shah, Executive Vice-President, Marketing & Sales, Godrej Properties.
He also shares details of other developments. “The development of a dry port and green field airport at Sriperumbudur, four-laning of the roads from Hoskote to Dobbaspet and from Mulbagal to Renigunta via Chittoor, a dedicated high-speed freight corridor, and the development of Chennai-Bengaluru expressway are all factors that influenced our decision,” he says. “There are also plans to develop an industrial corridor on the lines of the Delhi-Mumbai industrial corridor.”
The infrastructure is in place too, according to Umashankar, Head – Sriperumbudur Projects, Lancor Holdings.
“The roads are already in place. Sewage and water lines are already being developed. Connectivity through buses is effective. There are already quite a few local and international schools, engineering and medical colleges, hospitals, amusement parks, restaurants and hotels too,” he says.
Up north
Area: Ponneri
Where: North Chennai
Reason for promise: Planned smart city in Union Budget 2014-15
Budget 2014-15 presented a new, unlikely competitor to the popular investment destinations — Ponneri. One of three locations along the Chennai-Bengaluru industrial corridor earmarked for the creation of a smart city, Ponneri is now in the cross-hairs of many developers. “Another key point to be noted,” says Sarita Hunt of Jones Lang LaSalle, “is that Ponneri also falls in the part of the Outer Ring Road – Phase II that connects Nemilichery to Minjur.” She adds that JICA (Japan International Cooperation Agency) is already working on the master plan for the development of the smart city across 3,000 hectares. The smart city will see industrial parks, commercial buildings and, of course, residential development, and is a key factor in the rise of Ponneri, and with it, parts of north Chennai too, whose well-being have so far only depended on the mushrooming of industries.
City-based Guhan Builders and Promoters has kick-started work on phase one of its residential project, Om Sai Township, spread across five acres, just outside Ponneri. “I know many developers who are waiting for prices to rise before coming up with projects,” says S. Durai, director. “Buyers, thanks to the announcement of the smart city, have started to show interest in Ponneri. Hopefully, this will augur well for all of north Chennai.” Durai conjectures that the bad reputation of north Chennai is hampering its growth as an investment destination. “That looks to be changing though,” he says. “Areas like Madhavaram are attracting buyers .”
Taking into account these developments, it’s clear that options are building up for those who look beyond the usual choices.
