I ndia’s residential real estate market is on revival mode. With the aim of improving consumer confidence — and achieving the goal of ‘Housing For All by 2022’ — the Government has been making concerted efforts to provide incentives and has announced reforms to encourage the development of housing across the country. A key thrust has been given to the affordable housing segment in the 2017-18 Union Budget. With this segment having the largest end-user catchment, developers across the country are evaluating entering this segment.
Why Oragadam?
With cost being a primary factor for affordable housing, the suburban areas of large cities in towns, where land is available at cheaper rates, are emerging as preferred locations to develop such projects. One such location is Oragadam, located on the outskirts of Chennai.
Being highlighted as the city’s largest industrial belt, and with it emerging as an extension of the main city, the entire Sriperumbudur–Oragadam belt has seen tremendous industrial growth in recent years. With several Fortune 500 companies having a presence here, including leading automobile giants, coupled with good road and rail connectivity, there is an increasing migration of workforce to the area. This growing workforce will have a positive impact on the demand for other real estate segments including housing.
Infrastructure boost
The State government too has recognised the potential of the region and is investing into the further development of the area. With a view to fulfilling its Vision 2023 document which focuses on giving a thrust to infrastructure development, the Tamil Nadu Road Infrastructure Development Corporation (TNRIDC), with funding through the State Highways Department is investing ₹300 crore into the Oragadam Industrial Corridor Road. The project is said to provide a further thrust to industrial activity in the Oragadam-Sriperumbudur cluster and improve connectivity between the Grand Southern Trunk Road and Grand Western Trunk Road.
Connectivity
The area already has a good infrastructure support system with several educational institutes like the Doveton Correy Boys Higher Secondary School, Don Bosco Matriculation Higher Secondary School, Chennai Corporation Higher Secondary School, hospitals like Amrit Hospital, Abhijay Hospital, Stanley Hospital, and several retail establishments such as the Fountain Plaza, Abhirami Mega Mall and the Spectrum Mall.
The micro-market enjoys good connectivity to several key points in the city including the Koyembedu bus stand, the Chennai Central and Chennai Egmore railway stations, and the Tambaram and Chromepet bus stands lie in the vicinity. Chennai’s international airport is also just an hour away. As the entire region matures and the current infrastructure initiatives in the pipeline get completed, the overall liveability quotient of the city will improve.
Private projects
With land available at reasonable prices and the potential demand for housing expected to grow, the region is being preferred several private developers such as Tata Housing, Hiranandani and Ramaiah, who have begun several options to suit different segments of buyers. For example, Tata Value homes is developing Oragadam’s first plotted development, Crescent Enclave. Ramaiah Properties is building contemporary independent houses and the project is called Oragadam Villa, while Hiranandani is building a mega township called Hiranandani Parks here.
Capital values in the region range from approximately ₹2,500 to ₹3,200 per sq.ft. The further growth of the industrial and commercial segments in the city, coupled with improving connectivity, proximity to Chennai city and social and physical infrastructure will provide a significant boost to the residential market here.
User demands
With today’s home-buyer becoming more discerning before going ahead with their investments, their ask is for good social infrastructure including entertainment options. This end-user will also be looking for quality projects equipped with latest modern amenities at par with developments in any leading metro. At the same time, the price points need to be in line with current market expectations. Transaction volumes in the region will improve if these aspects are adequately addressed.
The writer is Head, Residential Services India, CBRE South Asia
