Developers in Chennai are now concentrating on the cashing in on the revival of manufacturing sector and hence their attention has shifted to the Grand Trunk Road – the next growth corridor.
There has been a rise in the manufacturing and industrial activities in the city of late which has also had a positive impact on the real estate segment in localities driven by this sector. This explains the robust development along the GST Road which has several localities such as Guindy and Tambaram with an industrial base.
In addition the GST Road is directly connected to Sriperumbdur, one of the major manufacturing and industrial hubs in the city. Buyers in the manufacturing segment are also more positive about the real estate market as compared to the IT segment. This further reinforces why development is shifting towards the GST Road viz-a-viz the Old Mahabalipuram Road (OMR).
Enquiries are largely from people employed in blue-collared jobs and local small time businesses seeking homes within a budget range of Rs 30-40 lakh. While projects in this budget range are also available along the OMR, buyers employed in the manufacturing sector prefer something closer to their workplace.
In the last quarter itself (Apr-Jun 2014) the stretch has witnessed a large number of launches and this trend is expected to continue in the coming months as well.
Data with Magicbricks reveals that localities such as Pallavaram, Urapakkam, Tambaram, Chrompet, Guduvanchery and Singaperumal Koil have new projects along the stretch. For instance, there are around three to four new projects each in Tambaram and Urappkam that were launched in early 2014 and are slated for possession by 2016-17. All these projects are largely offering 2 and 3BHK multi-storey apartments in the budget range of Rs 25-50 lakh.
So, do all these developments indicate that GST would displace OMR as the next growth corridor in the city? Well, while OMR has ample residential options, most affordable projects are beyond Shollingnallur and thus, deprived of developed infrastructure. This is not an issue with localities along the GST Road. Moreover, with demand pouring in from the manufacturing sector, GST does have an upper hand, at least for the time being!