Chennai’s Old Mahabalipuram Road (OMR), also known as the IT Corridor, has transformed from a sleepy coastal route into one of India’s most sought‑after real estate hotspots. In 2025, OMR continues to outpace many other submarkets thanks to a potent mix of job creation, infrastructure upgrades, and lifestyle amenities. If you’re wondering whether to invest on OMR—or simply curious about why property here commands such attention—this guide will walk you through everything from price trends and rental yields to upcoming developments and practical investment tips.
1. The OMR Success Story: From Farmland to IT Powerhouse
OMR’s rise began in the early 2000s when global IT firms like Cognizant, Infosys, and TCS set up sprawling campuses between Taramani and Siruseri. Today, more than 1,500 IT/ITeS companies employ over 300,000 professionals along this stretch . As headcounts swelled, residential demand migrated eastward from Anna Nagar and Adyar, sparking a construction boom: high‑rise apartments, gated communities, and mixed‑use developments now line the 45 km corridor from Madhya Kailash to Mahabalipuram.
2. Current Price Trends on OMR
- Average Property Rate: ₹6,677 per sq ft
- Starting Prices: Entry‑level units from ₹1,505 per sq ft
- Top‑End Listings: Luxury projects reaching ₹19,315 per sq ft
Over the past year, OMR witnessed a 5–7 % year‑on‑year price rise, in line with Chennai’s overall residential growth of 7 % in 2024 and 5–9 % in South Suburbs . Mid‑segment housing on OMR—where most new launches occur—now trades between ₹4,500 and ₹6,000 per sq ft , making it competitive against other southern suburbs like Tambaram and Perumbakkam.
3. Rental Yields: Cash‑Flow Advantages
One of OMR’s standout metrics is its rental yield, which averages 6 % annually—well above the national average of 2.9 % . Vacancy rates remain below 10 % owing to steady inflows of IT professionals, students, and contract consultants. Typical rents for a 2 BHK (800–1,000 sq ft) range from ₹20,000 to ₹30,000 per month, translating to gross yields of 5–7 % when compared with mid‑segment sale prices .
4. Infrastructure Upgrades Fueling Growth
4.1 Chennai Metro Phase II
Phase II will add 116.1 km of metro lines, including a 20 km elevated stretch from Taramani to SIPCOT, slated for partial launch in 2025 and completion by 2028 . Ten new stations along OMR will cut commute times to the IT corridor by half, boosting both residential and commercial appeal.
4.2 Ring Main Water Project
A ₹2,423‑crore pipeline project by CMWSSB will interlink reservoirs and desalination plants along OMR, ensuring uninterrupted water supply and reducing tanker dependence—critical in Chennai’s water‑scarce summers .
4.3 Road Widening & Flyovers
The Greater Chennai Corporation is widening key junctions at Thoraipakkam and Sholinganallur, while grade separators at major crossings ease rush‑hour snarls . These road projects improve connectivity to the airport and outer ring road, enhancing OMR’s catchment.
5. Social Infrastructure & Lifestyle Pull
Beyond offices, OMR now boasts world‑class hospitals (MIOT, Billroth), international schools (Canadian International, Chettinad Vidyashram), and large malls (Phoenix Marketcity, Vivira Mall). Cafés, microbreweries, and waterfront promenades along Perungudi Lake have transformed OMR into a self‑sufficient corridor . This holistic ecosystem attracts not just single professionals but also families seeking convenience.
6. Micro‑Markets: Where to Invest on OMR
OMR comprises several distinct pockets, each with its own investment profile:
| Locality | Avg. Price (₹/sq ft) | Yield (%) | Key Highlights |
| Taramani | 6,000–7,500 | 5–6 % | Proximity to Chennai Trade Centre, research institutes |
| Perungudi | 5,500–6,800 | 6–7 % | Lake views, older complexes with strong rental demand |
| Karapakkam | 5,000–6,500 | 6 % | Emerging mid‑segment hub, school clusters |
| Sholinganallur | 5,500–7,000 | 5–6 % | Rapid new‑project supply, shopping and dining zones |
| Siruseri SIPCOT | 4,500–5,800 | 6–7 % | Large IT park campus, affordable entry prices |
Investors targeting steady cash flow often prefer Perungudi and Siruseri, where yields hit 7 %, while those eyeing capital appreciation lean toward Sholinganallur and Taramani, which benefit most from metro connectivity research.jllapsites.com.
7. The IT Corridor’s Continued Expansion
OMR’s biggest growth driver remains its IT ecosystem:
- New Campuses: Major firms like Zoho and Mastercard are expanding existing facilities.
- Co‑working & Start‑ups: Over 200 co‑working spaces and incubators cater to small teams and entrepreneurs.
- Data Centers: Large‑scale data‑center projects signal diversification beyond pure software services.
This ongoing employment growth sustains both sale‑and‑rental demand—protecting investors even if one segment slows.
8. Risks & Mitigations
While OMR’s fundamentals are strong, smart investors account for:
- Oversupply: 30 %+ of current inventory is under construction. Opt for ready‑to‑move flats to avoid delivery delays.
- Price Corrections: Mid‑segment rates may plateau if new launches flood the market; focus on micro‑locations with scarce land bank.
- Regulatory Hurdles: Keep an eye on environmental clearances—lakshadweep wetlands near Perungudi have faced occasional litigation.
Mitigation strategies include staggering purchases, favoring RERA‑approved projects, and diversifying across micro‑markets.
9. Practical Tips for OMR Investment
- Buy Ready‑to‑Move: Achieve immediate rental income and avoid loan interest during construction.
- Target 2 BHK Units (800–1,000 sq ft): Hit the sweet spot for both corporate tenants and small families.
- Furnish Smartly: Basic modular kitchens and wardrobes can lift rents by ₹2,000–₹3,000 per month.
- Leverage Home Loans: With interest rates around 8 %, rental yields of 6 % still make sense when you account for capital appreciation over 5–7 years.
- Monitor Metro Rollout: Book close to future stations (e.g., Kottivakkam, Perungudi Phase II) before prices fully reflect connectivity gains.
10. Future Outlook: 2025–2030
Analysts forecast 5–8 % annual capital appreciation along OMR through 2030, driven by:
- Metro Phase III & IV: Extensions linking Perungudi to Velachery and Koyembedu.
- IT‑Health Corridor: Planned MedTech parks near Thoraipakkam.
- Academic Hub: New universities (IIT Madras expansions) boosting student housing.
Combined with steady 6 % rental yields, OMR remains one of Chennai’s most compelling long‑term real‑estate bets.
Conclusion
OMR’s real‑estate boom in 2025 is no accident. A potent synergy of thriving IT employment, robust infrastructure roll‑out, and high‑quality social amenities underpins both price appreciation and rental demand. With average rates of ₹6,677 per sq ft and 6 % rental yields , the corridor offers a balanced risk‑reward profile. By focusing on micro‑markets like Perungudi or Sholinganallur, choosing ready‑to‑move 2 BHKs, and staying attuned to metro developments, investors can lock in cash flow today while enjoying capital gains tomorrow.
Source : Fulinspace.com