Chennai’s Outer Ring Road : Real Estate Booms ..!


The real estate sector is going through a dull phase with people hesitating to invest on apartments (Flats) or / land on the outskirts of the city, but some areas abutting the Outer Ring Road (ORR) have seen good appreciation in recent times.

Property prices on ORR have seen more than 200 % appreciation in the Last 3 years, say real estate consultants.




An acre of land on ORR used to cost Rs. 75 lakh to Rs. 1 crore in 2010, when the road project was in its initial stages. It has more than tripled now. that is Rs. 3 crore

Even adjoining areas such as Perungalathur, Mannivakkam, Padappai, Mudichur & Kundrathur have reaped the benefits of this world class road, the first phase of which connects Vandalur & Nazrethpet. This stretch is nearing completion at a cost of Rs. 1,081 crore.

A contractor was recently selected to carry out work on the second phase at a cost of  Rs. 985 crore. Real estate along the stretch may see further appreciation with the government announcing a 65-acre bus terminus between the GST Road & the ORR at Vandalur.

 
A realtor at Mudichur near Chennai said, "A lot of enquiries are coming from builders / promoters and property investors in the Vandalur - Mudichur stretch after the state government announced the bus stand project in April, 2013".

The rate of appreciation on ORR has been highe than on Old Mahabalipuram Road (OMR), East Coast Road (ECR)and the Bangalore highway, which have better social infrastructure, said Mr.Jayant Hemdev, Business Director, Hemdev's, a realty consultant.

Mr..Jayant Hemdev said, "In the past 3years, prices on the Maduravoyal Bypass appreciated by almost 100 per cent. But, on the ORR, the appreciation was more than 200 %. The high growth on the ORR can be attributed to a low base it started off with".

Meanwhile, the Chennai Metropolitan Development Authority (CMDA), the owner of the ORR, has selected L & T Ramboll as consultant to advise it on how to utilise nearly 50 metres of buffer zone retained by the CMDA on the eastern side of the ORR.
 Though the CMDA had acquired a 122 metre wide stretch for the 62 km long ORR, it handed over only a 72 metre wide stretch for the road.

The CMDA had retained the buffer zone to provide space for wayside amenities, commercial establishments and, if needed, space for future expansion of the road, said an official.

As of now, there is no social infrastructure on the ORR. The contract will be signed by the two entities on recenty. L & T is expected to complete the study in 6 months.



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