Rs 400 crore flyover to connect OMR, ECR in Chennai


omr-ecrA flyover connecting the Old Mahabalipuram Road and the East Coast Road is now a step closer to reality. The design of the flyover that would start near Tidel Park on OMR and land on ECR was given a go-ahead by a technical committee of the state highways department that met a few days ago. “The alignment of the flyover was decided in December last. Now we have decided where the arms will come and where exactly the flyover will land,” said an official of the state highways department.

TOI was the first to report when the alignment committee gave its nod in December last. The flyover will begin just after the small bridge on the Buckingham Canal on West Avenue Road. It will then cross the much-dreaded Lattice Bridge Road junction, turn right and then land on ECR near the Thiruvanmiyur RTO. “The final detailed project report will be submitted in three months. A tender will then be floated and work on land acquisition will start in a year,” said the official.

This is touted to be one of the most expensive flyovers in the city, given its size. “The cost has been estimated at Rs 400 crore,” said the official.

Unlike previous projects, land acquisition will be completed before construction begins. “This is to ensure that cost of construction doesn’t keep increasing with delays in land acquisition,” said the engineer. Construction of flyovers in Porur, Moolakadai and Thirumangalam has been delayed due to land acquisition issues.

Commuters on the stretch say that while the flyover would make a difference, the Tidel Park junction is still a bigger problem. “This flyover will make a difference, albeit a small one. It is a temporary solution and the bigger problem is at Tidel Park,” said Suresh Menon, a cinematographer who has been working with the Chennai Traffic Police on solutions for traffic management in the area. “While one would take 10 minutes to cross the traffic signal at LB Road, it takes at least 45 minutes to cross Tidel Park signal. Coming from Madhya Kailash, traffic piles up well past Thiruvanmiyur MRTS station,” he said.

Earlier this year, the state government announced that a 45-km elevated road would connect Madhya Kailash and Mahabalipuram. “We will soon appoint a consultant to study the feasibility of this project as well,” said a highways engineer.

Additional commissioner of police (traffic) Karuna Sagar said this was the only real solution in sight. “There is nothing else we can do to manage the traffic flow. It takes more than one signal cycle to clear traffic and hopefully the situation will improve after these projects,” he said.

Source: The Times of India, Chennai

Unsold houses in Chennai pile up as sales slump


Builders across the country have been worried as unsold housing stock have been piling up in the recent months.

Chennai’s unsold housing stock, for instance, has risen from 20,000 units a year ago to 45,000 units now as per a study conducted by international realty consultant Jones Lang LaSalle. Sales have dipped across seven major markets in India in the first quarter of 2013, . As against 80,000 apartments sold in the last quarter of 2012, only 65,000 units were sold between January and March this year. A sizeable portion, about 39% of these sales happened in the National Capital Region (NCR). Mumbai accounts for 18%, Bangalore 15%, Chennai 13% and Pune 8%.

The waiting period for unsold inventory in Chennai is the lowest among seven major Indian cities, said Puri. While the average waiting period for a completed apartment to get sold in the country is 15 months, in Chennai it is only 10 months. Hyderabad and Kolkata have a slightly higher waiting period of 12 months, Pune and Gurgaon 14 months and Bangalore 23 months. An average apartment in Mumbai, which has the highest waiting period, gets sold after 34 months of completion. It is this comparatively higher demand for residential apartments that helped Chennai rebound soon after the 2008-09 realty slump,.

Differentiating between Chennai city and outlying areas, “While the demand for housing in the core city is quite high even now, it has slowed down in the suburbs.”the slump in the suburbs partly to an unprecedented glut in supplies and partly to a steep hike in prices, especially on the Old Mahabalipuram Road in a short span of six to nine months. “Until a year ago, apartment price on the OMR was in the region of Rs 4,000 per sq ft. It suddenly went up to Rs 5,500 per sq ft in areas like Sholinganallur and Thoraipakkam, which still lag in good social infrastructure. Naturally”.

About 35% of Chennai suburbs unsold housing stock is on the OMR, “If investors who have funded the projects find it difficult to exit, the market may crash as it happened in the case of NCR,”. Too much concentration by builders on OMR is the bane of Chennai, noted  “When so much of development is happening on the OMR, transportation facility and social infrastructure need to be improved manifold.”

Source: The Times of India, Chennai

TN partners Ascendas, Japan consortium for Rs 3,500-cr township


Japanese investments into Tamil Nadu are set to get a boost with the State Government entering into an agreement with the Singapore-based developer Ascendas and a Japanese consortium to promote a Rs 3,500 crore industrial township near Chennai.

A business support centre is also to be set up to facilitate Japanese investments into the State.

According to an official press release, the agreement between the Tamil Nadu industrial investment facilitating agency, the Guidance Bureau, Ascendas and a Japan consortium comprising Mizuho Corporate Bank, JGC Corporation, a programme management contractor and investment partner, was signed at the Secretariat today in the presence of the Tamil Nadu Chief Minister, Ms J. Jayalalithaa and Japan’s Minister of Economy, Trade and Industry Mr Yukio Edano.

The 1,500-acre township to come up on the Old Mahabalipuram Road, to the South of Chennai, to be developed over five years will have a manufacturing zone, commercial, residential, and institutional and social infrastructure facilities. The project has a potential to attract investments of over Rs 15,000 crore and generate 40,000 jobs. The State Government will facilitate the implementation of the project.

Over a third of Japanese investments into India are in Tamil Nadu where 286 major Japanese companies have established a base.

The Chief Minister, Ms J. Jayalalithaa said that Tamil Nadu has constituted a Joint Working Committee in line with the suggestions made by the Japanese Ambassador to India, Mr Saiki, who had visited Chennai in September last year. The committee will facilitate dialogue on social developmental issues, cultural and education exchanges, improving investment climate and infrastructure development.

While assuring full support to the Japanese investments in the State, She said the Government will soon be coming out with a new, investor friendly, industrial policy.

To specifically address the needs of the Japanese companies, a study to set up a Northern Port Access Road to improve infrastructure around Ennore Port. The port dredging works are also being expedited. The agreement to set up a business support centre was signed between the Guidance Bureau and the Japan External Trade Organisation (Jetro).

In a separate press release, Ascendas said that through the MoU, Tamil Nadu has agreed to facilitate the collaboration between local government agencies with Ascendas and its partners in the implementation of the township project.

The integrated township will be developed by the joint venture between Ascendas India Development Trust (AIDT), the private property development fund spearheaded by Ascendas, and one of India’s leading real estate developers, IREO, along with the Japan Consortium.

The township is to come up about 50 km south of Chennai, the development will integrate industrial, business, commercial and residential elements with lifestyle amenities. The 1,500-acre township will provide eco-friendly infrastructure for the growth of Japanese and international businesses and support a community of more than 40,000.

Elevated corridor along OMR to be country’s longest


To facilitate a smooth ride for thousands of people hitting the IT corridor everyday, the Tamil Nadu government has announced an elevated corridor along the 45km Old Mahabalipuram Road. It would be the country’s longest such corridor, much longer than the Hyderabad airport-city link which is 11.6km.

Chief minister J Jayalalithaa said the government would soon prepare a detailed project report. The announcement comes at a time when the 19km Chennai Port-Maduravoyal elevated corridor, being built by NHAI, is stalled because of the objections raised by the state government.

Jayalalithaa made a slew of announcements in the assembly on road infrastructure development, including on multi-level vehicle parking at Siruseri, rail over- bridges and road widening projects estimated to cost 2,000 crore.

The elevated corridor would be built in two phases, from Taramani to Siruseri and Siruseri to Mammallapuram. “This is to decongest the chaotic traffic emanating from the large number of IT firms, multi-storied buildings and educational institutions along this road. 5 crore will be allocated for the detailed project report,” she said. The IT corridor was initiated by Jayalalithaa during her earlier tenure.

The 45km long stretch starts at Madhya Kailash Temple junction on Sardar Patel Road and ends on East Coast Road, parallel to the Old Mahabalipuram Road. The prestigious TIDEL park is also located on this road.

Old Mahabalipuram Road paves the way for realty development


Savithanjali - Marg Properties

Savithanjali -Rs. 37.01 – 52.78 Lac -2-3 BHK Apartment / Flat- Marg Properties

The setting up of TIDEL Park on Rajiv Gandhi Salai or Old Mahabalipuram Road (OMR) in 2000 changed the landscape of the stretch forever, paving the way for the development of the IT corridor, as we know it, today. This development, naturally, led to the creation of a premium residential housing market along the belt starting from Madhya Kailash, all the way to Thiruporur, and beyond. OMR may have seemed like a distant suburb a few years ago, but now, it is very much a part of the city.

“OMR, up to Sholinganallur, is essentially an extension of the city, and should not be considered a suburb anymore. Take Velachery, for instance. Until recently, it was considered a low lying suburb that was only in the news during monsoons. But now, it’s a thriving residential and commercial zone, and very much a part of the city.”

The location of OMR – its proximity to Adyar, for example – has attracted large scale residential development here. This gives the area a distinct pricing advantage, . “The prices (per sq ft) are almost half of that in Adyar,” he adds, “So, at a
distance of less than 5km from Adyar, one can procure an apartment for half the price.” Another factor that works to its advantage is its proximity to ECR. Badal Yagnik, MD, Jones Lang LaSalle, Chennai, says, “Prices on ECR are 50-60% higher than that along OMR. And both corridors are witnessing plenty of development in the residential/ commercial sectors.”

Although it was the IT sector that initially fuelled growth along OMR, it’s no longer the sole growth driver.  “It’s the demand for housing that has been driving growth in this area over the last few years.” Last year, for instance, the city saw office absorption to the tune of 5 million sq ft, while this year, it is only 2 million sq ft. A large chunk of this space lies on OMR. Despite the fall in absorption rates, the demand for housing has been soaring along the OMR.”

While the stretch from Madhya Kailash to Sholinganallur has been witnessing maximum demand, even beyond Sholinganallur, the demand, though not as robust, exists. “Prices along the Madhya Kailash-Sholinganallur belt have been increasing by 20% year-on-year. However, some of the best schools are coming up in large townships planned in the latter half of OMR.

Places like Padur, for instance, are set to grow, with malls like Marg Junction, and residential projects planned in the vicinity.” Any further development on OMR is bound to happen after the toll gate, due to non-availability of land on the stretch from Madhya Kailash to the toll gate. while prices (per sq ft) range around 7,500 until Sholinganallur, they are about 3,000 to 4,000 in the area from the toll gate to Thiruporur, and lesser as you move further.

Source: Times Property

Old Mahabalipuram Road paves the way for realty development


The setting up of TIDEL Park on Rajiv Gandhi Salai or Old Mahabalipuram Road (OMR) in 2000 changed the landscape of the stretch forever, paving the way for the development of the IT corridor, as we know it, today. This development, naturally, led to the creation of a premium residential housing market along the belt starting from Madhya Kailash, all the way to Thiruporur, and beyond. OMR may have seemed like a distant suburb a few years ago, but now, it is very much a part of the city.

“OMR, up to Sholinganallur, is essentially an extension of the city, and should not be considered a suburb anymore. Take Velachery, for instance. Until recently, it was considered a low lying suburb that was only in the news during monsoons. But now, it’s a thriving residential and commercial zone, and very much a part of the city.”

The location of OMR – its proximity to Adyar, for example – has attracted large scale residential development here. This gives the area a distinct pricing advantage, says Chiity Babu. “The prices (per sq ft) are almost half of that in Adyar,” he adds, “So, at a
distance of less than 5km from Adyar, one can procure an apartment for half the price.” Another factor that works to its advantage is its proximity to ECR. Badal Yagnik, MD, Jones Lang LaSalle, Chennai, says, “Prices on ECR are 50-60% higher than that along OMR. And both corridors are witnessing plenty of development in the residential/ commercial sectors.”

Although it was the IT sector that initially fuelled growth along OMR, it’s no longer the sole growth driver. As Badal Yagnik says, “It’s the demand for housing that has been driving growth in this area over the last few years.” He continues, “Last year, for instance, the city saw office absorption to the tune of 5 million sq ft, while this year, it is only 2 million sq ft. A large chunk of this space lies on OMR. Despite the fall in absorption rates, the demand for housing has been soaring along the OMR.”

While the stretch from Madhya Kailash to Sholinganallur has been witnessing maximum demand, even beyond Sholinganallur, the demand, though not as robust, exists. Badal says, “Prices along the Madhya Kailash-Sholinganallur belt have been increasing by 20% year-on-year. However, some of the best schools are coming up in large townships planned in the latter half of OMR.

Places like Padur, for instance, are set to grow, with malls like Marg Junction, and residential projects planned in the vicinity.” Any further development on OMR is bound to happen after the toll gate, due to non-availability of land on the stretch from Madhya Kailash to the toll gate.while prices (per sq ft) range around 7,500 until Sholinganallur, they are about 3,000 to 4,000 in the area from the toll gate to Thiruporur, and lesser as you move further.

Source: Times Property, The Times of India, Chennai

Roads to the future


Three stretches on the city’s outskirts are on the way to becoming real estate hotspots, reports Prince Frederick

 

Kelambakkam-Vandalur; Vandalur-Oragadam-Walajahbad; Sriperumbudur-Singaperumal Koil.

These three stretches are hot topics in Chennai’s realty circles. They are spoken of as roads of the future. It is easy to see why. There is a flurry of business activity and infrastructural development along these roads and in their vicinities; moreover, they directly feed into big corridors of development.

All three connect to GST Road; in addition, Kelambakkam-Vandalur Road leads into Old Mahabalipuram Road and Sriperum budur-Singaperumal Koil Road into the Bangalore Highway.

“The GST Road is like a spinal column and these feeder roads, like vertebrae. What Mount Road does for Nungambakkam High Road, Cathedral Road, Venkatanarayana Road and a few others, GST Road does for these three roads. If you look at it, GST Road is but an extension of Mount Road,” says R.V. Shekar of Lancor Holdings.

Urban planning and the lack of space for expansion in the city’s north have fuelled the development of these areas. As they are linked to arterial roads, they figure prominently in the plans of town planners. In keeping with the larger goal of decongesting the city, these three roads are being widened.

According to official sources from the State Highways, four-laning of these three roads is underway (a 12-km stretch on the Sriperumbudur-Singaperumal Koil road is in fact getting a six-lane). At the Oragadam junction where the Sriperumbudur-Singaperumal Koil road and the Vandalur-Walajahbad road meet, a grade separator is coming up.

Close to OMR

Above all, the speedy growth of OMR as an IT hub has generated interest in the Kelambakkam-Vandalur stretch.

 

The road has also benefited from the development of social infrastructure facilities such as colleges, schools and hospitals. Access to similar facilities in nearby OMR and GST road is another attractive factor. Industry watchers feel that the completion of the Outer Ring Road will provide a further developmental fillip.

As for the other two roads, industrial activity in Sriperumbudur and Oragadam is the primary factor for the real estate boom. Renault-Nissan has installed a huge plant in Oragadam with an annual target of 4 lakh cars; Daimler India Commercial Vehicles (DICV) has built a test track at a 400-acre site in Oragadam; Sriperumbudur and its vicinity, which enjoyed the first wave of development that swept through the region, has Saint-Gobain, Hyundai, Nokia, Samsung, Flextronics (provider of electronics manufacturing services), Foxconn (computer and electronics manufacturer) and Dell.

Naturally, rapid development has pushed land prices in all the three roads.

“While land near the Sriperumbudur end of the Sriperumbudur-Singaperumal Koil Road could be bought at Rs. 300 to Rs. 350 a sq.ft. three years ago, now you can’t hope to get anything for less than Rs. 600 to Rs. 700 a sq.ft,” says Abinesh Yuvaraj of Baashyaam Constructions. Likewise, land on the Padappai, Oragadam and Walajahbad sections is available at similar prices and attracts investment buyers.

Tracts of land on either side of the Kelambakkam-Vandalur Road cost relatively more given their proximity to the OMR. At Kandigai, one major project offers developed plots at Rs. 26 lakh for a 2,400 sq.ft piece.

For many years, realty talk has centred around the OMR. Those in the business now believe that the buzz in the future will be around these three roads.

What builders say

Kelambakkam-Vandalur Road

Fifteen years ago, an ant would not go down the Kelambakkam-Vandalur road. It is now buzzing with activity.

R.V. Shekar, Lancor Holdings

A majority of those who buy from us are end users.

J. Ravikanth, Unitech Group

It is a road that will come to support a mammoth group of people who work on OMR and GST road.

Devadoss Sundaram, CeeDeeYes

Increasing connectivity by way of minor roads between the Sholinganallur-Medavakkam stretch and the Kelambakkam-Vandalur stretch encourage people to look for housing in this area.

Sandeep Mehta, Jain Housing.

Sriperumbudur-Singaperumal Koil Road & Vandalur-Walajahbad Road

Blue collar workers constitute at least 80 per cent of the working population in these areas. It is a young workforce with modest salaries.

P.B. Krishna Prasad,

Vasavi Housing

Sriperumbudur is definitely on the way up. But we still have to cater significantly to a highly budget-conscious market.

Abinesh Yuvaraj,

Baashyaam Constructions