by Sivagurunathan S, Executive Director, Navin’s

The Chennai realty space has always been an end-user-driven market and the real estate developers have been catering to the altering demands of homebuyers, from time to time.   

Over the years, there has been a shift in the demand with customers preferring micro-markets. This led to residential properties coming up in places like Thirumudivakkam, Ambattur, Oragadam, OMR, Guduvanchery, Siruseri and Pallikaranai. The development of the Outer Ring Road has acted as a growth propeller in the micro-markets. 

The Outer Ring Road or State Highway 234 is a 62-km-stretch connecting GST road, Perungalathur,  Vandalur, Nazarethpettai, Pattabiram and Minjur. It covers Avadi North, West and South, Redhills, Minjur and Tambaram neighbourhoods. Residential areas have been planned and are coming up in Thirumudivakkam, Minjur, Ponneri, Malayambakkam, Nazarethpettai, Agaramel and Poonamallee. 

For example, the areas near Thirumudivakkam Main Road with its close proximity to GST road in Pallavaram and the 400-feet Outer Ring Road, are developing really fast.  Thirumudivakkam has it all – close proximity to railway stations, important highways, outer ring road, schools, colleges and hospitals. The SIPCOT industrial park at Thirumudivakkam generates employment and aids in the further development of the region. 

Thirumudivakkam started gaining prominence among developers and homebuyers 15 years back but now, with the development of the ORR, the area is truly turning into a hotspot with immense potential for exponential growth. Homebuyers get the advantage of best amenities at competitive prices.  

Undoubtedly, the Outer Ring Road is emerging as a hotspot for residential projects mainly because of 

• The push from the government which includes increased Floor Space Index (FSI)
• The Metro work happening across the city 
• The IT parks and industries that are being developed.  

With keen interest in developing it, the government is planning to come up with an increased Floor Space Index (FSI) of 6 to 7 along the Outer Ring Road.  It is 2 in MHRB and 3.25 in HRB.

Certain factors have to be reconsidered for achieving increased FSI in these areas. The prevailing norms like the setback norms and car park norms should be revisited and revised as per the new proposed FSI. The government is working on it and the announcement might come very soon. Once these things fall in place, ORR will surely emerge a competitor to OMR. 

Another advantage is the Metro work which is happening in the city. In the next two years, the Metro line will connect various parts of the city extensively. When the second and third phase of the Metro line gets operational, there is sure to be a boom in residential markets. This is a much-needed one as the Chennai real estate market has seen a slump for the last 7 years. The infrastructural development and the government policies are helping the sector pick up its pieces.  

Not just this, The Tamil Nadu government is planning to develop IT parks on three sites of the 50-metre strip of land along the eastern side of the Outer Ring Road. The Chennai Metropolitan Development Authority (CMDA) has issued ‘enter upon’ permission for three sites – Malayambakkam, Manivakkam and Vandalur, following the request of Tidel Park Limited. A total of 13 state departments have come out with 59 projects covering 226 acres across the stretch. A total of 36 acres has been allotted to the Tamil Nadu Industrial Development Corporation to set up its warehouses. 

The government also plans to woo Global Capability Centres (GCCs) to set up bases in the state and that is sure to aid further development. Sectors like life sciences, automobiles and aviation are also expected to expand their GCC operations in India. The Outer Ring Road project will bring a notable change to Chennai’s landscape and will contribute to the city’s development in all aspects.