AN OVERVIEW: Residential Property rates on Old Mahabalipuram Road (OMR) have Escalated by 15 Times Since 2000..

Report by IndiaPropetry.com

Old Mahabalipuram Road (OMR) popularly known as the IT Corridor of Chennai was conceptualized by Tamil Nadu

Government in 1999 – 2000. Owing to delays due to land acquisition and change in government, the first phase of OMR became operational only in 2008. TIDEL Park at Tharamani was the first IT establishment here and it placed Chennai into the IT map of India, henceforth changing character and lifestyle of Chennai as a city.

Beginning at Madhya Kailash in Adyar the road stretches till Mahabalipuram. Some of the major localities on OMR are Perungudi, Thoraipakkam, Karapakkam, Sholinganallur, Navalur, Egattur, Padur, Siruseri, Kelambakkam, Thiruporur

OMR Phase 1

Madhya Kailash - Siruseri 20.1 Km

Operational since 2008

OMR Phase 2

Siruseri - Poonjeri 26.8 Km Under Construction

·· Currently there are two tolls on OMR; first one is at Perungudi and second at Navalur

·· The positioning of tolls also governs the locality preference of buyers

·· The demand and capital values for residential and commercial properties are high from Madhya Kailash to Perungudi (before the first toll)

·· Same way employees at companies in Siruseri prefer staying in projects where they don’t have to pay toll

for every day commuting

·· Analysing the buyer preference for various localities on OMR indicates that the distance from Chennai

city is not the only deciding factor when it comes to buying a property

·· Sholinganallur tops the list with over 30% buyers wanting to buy a property there, followed by

Thoriapakkam, Kelambakkam and Navalur

·· Budget, growth potential, proximity to employment centres, access, presence of social

infrastructure play a critical role

·· Asia’s biggest SIPCOT has been developed at Siruseri on OMR for IT companies

·· Many IT/ITES companies like TCS, Cognizant, iGate have set up their

base here generating huge employment opportunities and thereby a need for residences and related social and physical infrastructure in the area

·· Unlike Chennai which is known to be an end user driven market, OMR has

equally attracted both end users and investors

·· Considered to be one of the prospering property destinations, now there are low rise and villa

properties available beyond Kelambakkam as well

·· But the area will take over 5-7 years to get developed

Demand and Property Rates along OMR Are Also Governed By

Placement of the Toll Gates. Currently There is One at Perungudi

and Second One at Navalur

The residential property rates on OMR and its neighbouring micro markets have

escalated by close to 15 times since 2000

· · Comparing the actual market rates to the rates buyers are ready to pay – Padur and

Kelambakkam are closest to buyers expectations followed by Sholinganallur, indicating better future returns

Kelambakkam, Sholinganallur and Padur, are investment destinations on OMR

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