An eight-fold jump in area proposed for Chennai comes with a challenge list that is equally, if not more, daunting. Like other metros, Chennai is spreading in all directions. As declared in 1973-74, the present jurisdiction of Chennai Metropolitan Area (CMA) extends up to 1,189 sq km. But given the city?s sprawl, the Chennai Metropolitan Development Authority (CMDA) is examining the idea of creating a Chennai Mega Region for integrated development of the city?s offshoots. A preliminary report to expand the jurisdiction of CMA to 8,878 sq km, comprising entire Chennai, Kancheepuram and Thiruvallur districts and Arakonam taluk in Vellore district, is under examination of the Tamil Nadu government. Realty experts term Chennai?s level of industrialisation ?significantly superior? when compared with other cities in India, with a focus on IT and auto. As Preetham Mehra, head of operations, CBRE South Asia, says, ?When it comes to Chennai?s real estate and infrastructure expansion, one can see a slew of external reasons. One is the spurt in employment generation with IT and industrial segments contributing significantly to it.?
?Though conservative in nature, Chennai?s commercial realty market of late has been witnessing hectic activity with a slew of malls and hotels. Hotels such as Grand Chola, Hilton, Park Hyatt and Leela Palace, among others, have come up. New malls are being launched faster than ever before. This follows an expanding residential population,? adds Mehra.
With increased population comes the bigger question of housing, which is the main challenge before the city. But thankfully, the state government is serious about creation of housing facilities for all, especially the economically weaker sections. A whopping R75,000 crore has been earmarked for housing in the state and strategies planned accordingly. The focus is on rehabilitation of slum dwellers, infrastructure facilities, development of urban areas, prompt planning permission for land and building developments and promotion of satellite towns.
An integrated township over 310.42 acres near Thirumazhisai in Thiruvallur district at a cost of R2,160 crore is in the offing. It has been proposed to construct 3,646 TNGRHS flats and 2,608 flats under self-finance scheme at an estimated cost of R1,740 crore in phase-I and phase?II by demolishing 2,238 dilapidated TNGRHS flats at 17 locations in Chennai City. As per Cushman & Wakefield, 2012 had been very robust for Chennai?s residential market. The market witnessed capital appreciation of 150% over the past three years, a steady and cumulative growth devoid of major spikes or troughs characteristic to residential landscape in any city or market.
Another positive is road infrastructure, which promises to be better with a healthy monetary allocation of R2,980 crore by the government. Add to this the R14,600-crore Chennai Metro Rail, a new airport at Sriperumbudur and the ambitious Chennai Outer Ring Road project that connects all the scattered industrial pockets, which are sure to fuel the city?s growth manifold. The Oragadam-Sriperumbudur belt, which houses the manufacturing plants of biggies like Hyundai, Nissan and Ford, to name a few, is triggering a flare-up in road connectivity.
But all are not ga-ga about the city?s so-called development story. Many feel that though the central areas have grown substantially, suburbs are still a neglected lot. Ganesh Vasudevan, CEO, Indiaproperty.com, says owing to better job opportunities and thereby high rate of migration, all the cities are expanding. Even though cities are seeing development with numerous residential options available for both rent and purchase, the city suburbs lack the liveability factor. ?If we take Chennai as an example, the city limits were expanded in 2011, but no development work can be seen. All the highly perceived development areas namely OMR, GST and ECR have been exploited by developers and there are abundant residential projects available in these belts. But even after ten years, these areas lack basic infrastructure with no metro water supply and sewage lines. What the market would witness in the future as a result of this is lack of end-user participation in all such areas. Pressure from both residents and developers should provoke the government to act on the neglected belts.?