Chennai, formerly known as Madras, is the fourth largest metropolitan city of India and the capital of Tamil Nadu. The city with an estimated population of 6.90 million is a large commercial and industrial centre, and is known for its impressive cultural heritage and temple architecture. The city with a right mix of tradition and modernity is undoubtedly one of the most preferred destinations foreign direct investment (FDI) in India such as joint ventures and Real Estate investments.

Chennai is poised for a quantum leap; it has several inherent advantages for real estate development, availability of skilled manpower, better infrastructure and cosmopolitan outlook. The all-round development has enthused national & international real estate developers to enter the Chennai property sector. There has been upsurge in demand for residential apartments and property. The spillover effect is felt in suburbs as well with real estate and property developers garnering more areas for residential property development. Properties offering world class lifestyle amenities are mushrooming across the city.

Old Mahabalipuram Road (OMR, Chennai)

“Good Old Mahabalipuram Road, now known as the IT Corridor of Chennai, is the latest beehive for real estate development.” reported The Hindu in February this year. Stretching from Taramani and Perungudi to Padur and Kelamakkam, the area has seen property / land prices escalate almost three times in less than 3 years, and a further increase of 20-25% is estimated for 2007. It has not only escalated the capital value of commercial real estate, but also stimulated the demand of residential real estate.

The entry of established builders / developers like Unitech, Puravankara, Sobha Developers, Brigade, Prestige, Hiranandani Constructions, DLF, K Raheja, and Divyasree is by itself a clear indication of the growing potential engulfing the city through its IT Corridor. Other projects under implementation include those developed by Real Value Properties, Akshaya Homes, Citilights, Ceebros, Sucons, Ran Tech, Appaswamy, XS Real Properties, Srinivasa, etc. Mumbai based Hiranandani Constructions has acquired nearly 100 acres of land opposite Siruseri Park.

Singapore Realty is building a huge township project with 6,000 apartments inside Siruseri Park. Some of the prime residential developments marking the IT Corridor are Arihant Escapade, Arihant Heirloom, Olympia Opaline, Mantri Synergy, Hiranandani Upscale, Purva Swanlake, Vijay Shanti Builder’s Gangotri, Ten’s Oakwood Utopia.

The commercial real estate property have been on the upswing as IT companies are the prime occupants. Cognizant Technology Solutions (CTS), Tata Consultancy Services (TCS), Infosys, Satyam, Polaris and Accenture have already set up shop on the IT corridor. Both TCS and CTS have two units on the corridor and the former is developing its third unit inside the SIPCOT’s Siruseri Park.

An IT SEZ by TIDCO on 25 acres on the IT corridor will provide commercial space for a convention center cum five-star hotel. Projects under development include Ascendas ITPC, RMZ Millenia 1, Olympia Tech Park, Prince Software Park and Arihant Technopolis.

A number of retail developments also mark OM Road. There are confirmed plans to develop malls by many real estate companies like Allied Group in partnership with Arihant Foundations & Housing, Marg Constructions & Suryavardhan Estates within the next two years. Given its furious development in IT/ITES infrastructure, retail and residential space, the Old Mahabalipuram Road is fast becoming Chennai’s Gurgaon.