OMR (Old Mahabalipuram Road) in Chennai is considered as one of the most sought-after residential localities in South Chennai. The main backbone of this locality is the IT corridors and companies which are operational from here for around seven to eight years. Currently, the situation is very grim on the OMR stretch as it is facing over-supply of residential projects in old mahabalipuram road. The arrival of IT companies has helped the first stretch to develop in a fast-paced manner with lots of residential complexes being constructed and sold immediately. But, recently the pace of development has come down a bit as most of the buyers do not want to go beyond Sholinganallur.
Beyond Sholinganallur even though houses are priced at Rs. 3500 to Rs 4500 per sq ft there are not many takers. Places like Navalur, Padur and Siruseri have not been developed much due to the absence of social infrastructure like schools, hospitals, retail and entertainment options. Although buyers are reluctant to invest in these areas new projects are coming up as one can find huge land parcels at lower rates leading to an over-supply of residential projects.
Mr. Senthil Kumar, MD of Ganga Foundations states that presently there are around 25,000 housing units coming up on OMR and the fact that the total absorbing capacity of the city is only 40,000 units annually these numbers are definitely high. Moreover, professionals who want to reside near their workplace have started shifting to locations off the road that offer lower values in comparison to high prices on the first stretch of OMR (Sholinganallur).
Still, builders believe that as soon as the infrastructure development starts in the other parts of the stretch such as wide roads, water and electricity supply, investments will start pouring in from home buyers. But this will take at least 5 years to take shape and to encourage homebuyers to buy a property.
For investors, it is a good time to invest in Padur, Siruseri and Navalur, as these are developing areas and given a time frame of approximately 5 to 7 years these localities will be one of the hot-spots of Chennai and will yield good returns.