What does the new extended CMDA limit mean for a Real Estate Buyer/ Investor?
The topic that we broach today is the extended CMDA limit and we analyze the order of its impacts on a Real Estate Investor.
- Firstly and very implicitly the direct consequence of this would be urban planning.
- Secondly, with Urban planning in the pipeline, what we can expect to see is better connectivity (more metro lines coming over ,more metro stations, more flyovers to decrease traffic congestion, and more widening of major roads).
- Thirdly, what we should be expecting is infrastructure development in terms of power supply, water drainage, and lastly zoning of areas ( segregation of areas ) in unplanned areas and local planned areas.
Before we move on , let’s take a quick recall of the history of The City Planning Department.
History of CMDA Limit :
CMA and CMDA commenced implementation of the first master plan as early as 1974 covering 1189 sq km. The second master plan (2026) was notified in 2008 and finally now the city is expanding nearly 5 times to 5904 sq km which takes the city limit beyond 70 km in any direction from Broadway! That’s huge !! Namma Chennai now touches Andhra Pradesh in the North, covers the districts of Tiruvallur in North West , Kanchipuram in South west , Chengalpattu in South and a part of Ranipet in the West.
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With this move the CMDA has taken 1225 new villages under its fold. Speaking in terms of Development and the population explosion , Urban planning envisages planned urbanization to ensure live-able cities with green urban spaces that will decongest the city. The basic idea of the expansion of the city 5 times more than what it is now is to ease infrastructure funding once it comes under the CMA limit .
Keeping in mind the importance of commuting for overall development 3 bus stands for outbound buses have been set up :
Madhavaram terminus for buses to Andhra Pradesh and North
Thirumazhisai terminus for buses to Karnataka and West
Vandalur (Keelambakkam) terminus for buses to South TN and Kerala
The point to note here for a Real Estate investor is the zoning of new areas which are currently not zoned under a LPA – Local Planning Authority.
So what are the 3 most important points that you should be alert, aware of and use from this 3rd master plan announcement in terms of the Zoning process ?
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Initially , get ready to invest in areas that are first in the pipeline to be developed and which will grow and get appreciated at a faster pace than the existing areas.
Next stay aware of plans and proposals of the government in terms of Investment policies, Economic efforts, and Employment generation activity in the areas within the new CMDA Limit.
Finally, be alert especially if you already have investments in the new CMDA Limit area – on the proposed zoning area planned for your lands – The proposed Land use assigned should align with the actual best use of the land.
To understand the implication of the last point, we need to take a look at the process in which it’s done. The government will share a draft, call for public consultation, permit objections, and suggestions on the proposed land use maps. If you miss the opportunity to study your investment and the zone that it belongs to at this stage it will cost you dearly to have your land converted after the master plan is notified. No newspaper or advisor has alerted you on this so far – so stay alert, and aware, invest, and use the master plan to your best advantage.
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