Coimbatore realty on the growth track
Property prices in Coimbatore are at an all-time high. In the last couple of years alone, prices in the region have shot up by 25 to 30 percent, thanks to increasing labour, land and material costs. However, these factors haven’t diminished Coimbatore’s attractiveness as an ideal destination for real estate investments.
Though a metro in the making, Coimbatore has managed to retain its laid-back aura and traditional charm. This quality has appealed to the middle-income segment that contributes significantly to the city’s property market.
According to developers in the city, the steady demand for affordable housing is driving the real estate market here. P Karthikeyan, Chief Executive Officer, Trishul Shelters Private Limited, says he doesn’t foresee a slowdown in Coimbatore’s property market. “In my estimate, Coimbatore will see a demand for close to 1 lakh housing units in the next few years. The population of Coimbatore is growing and so will the city’s housing needs. And this requirement will be felt across all segments,” he says. Agrees Manoj Krishna Kumar, Director, Coral Crest Builders, who says that affordable houses will always be in demand. Manoj elaborates that the demand will be more for houses in the 35 to 50 lakhs bracket, as it’s the middle income group that invests heavily in property.
However, Karthikeyan rues that poor infrastructure has shackled the city’s growth. “For a growing city like Coimbatore, we are way behind in terms of infrastructure development. Upgrading infrastructure along Avinashi Road, Trichy Road and Mettupalayam Road is necessary, as large-scale development is happening along these stretches,” he says. Various projects such as Akshaya Homes’ Orbit 11, TVH Vista Heights (Trichy Road), Srivari Vaibhav, Trident Harmony (Mettupalayam Road), Tulips by Vascon and Pricol and Ravi Murugaa’s Sree Sai Kirupaa (Avinashi Road) are coming up on these roads.
S Kanagasundaram, President, Association of Licensed Building Surveyors, Coimbatore, points out that rapid infrastructure development can enhance Coimbatore’s appeal as an ideal investment destination. “Traffic is a major problem and therefore, the need of the hour is more arterial and scheme roads to provide better connectivity and ease traffic in prime areas,” he says. Good infrastructure, believes Kanagasundaram, will bring more investments to Coimbatore. Besides, with the corporation limits expanding to include suburban areas such as Kavundampalayam, Kurichi, Kuniamuthur, Kalapatti, Saravanampatty, Thudiyalur, Vadavalli, Veerakeralam, Chinnavedampatti, Vellakinar, Chinniyampalayam and Vilankurichi into the city fold, there is a pressing need to upgrade facilities in these areas as well. The Coimbatore Corporation has given top priority to public health, water supply and street lighting in the first phase of upgradation in the expanded suburbs.
Interestingly, the outskirts are also prime locations for some of the best retirement homes in the city. Covai Property Centre India Private Limited’s Serene Retirement Communities and Ananya Shelters’ Nana Nani projects are set in the foothills of the Western Ghats.
Besides, various integrated township projects are also finding a favourable market in the suburbs. For instance, Rakindo Kovai Township Limited’s Kovai Hills is a one-of-its-kind 1,000-acre golf-themed project coming up near Perur.
On the commercial front, in 2011, real estate consultancy firm Jones Lang LaSalle (JLL) had pitched Coimbatore as one among the 20 retail destinations worth exploring. With two malls in the pipeline – Fun Republic comprising 3.25 lakh square feet and one million sq ft of Prozone – retail investments are set to soar in the coming years. “However, this will not affect high street business, as, in Coimbatore, there is always a demand for space in prime commercial streets,” says an expert at JLL. According to him, traditional commercial centres such as D B Road, TV Swamy Road and Crosscut Road will continue to hold their own, in addition to business from emerging markets such as Avinashi Road, Trichy Road and Mettupalayam Road.
The office segment is also poised for growth with the need for A grade commercial buildings being realised. Madan Lund, Director, Srivari Infrastructure Private Limited, says that companies can be lured to set up shop here if the city has sufficient grade A commercial buildings. “MNCs look for buildings with international specifications especially in the 50,000 sq ft range. This is one area that developers can concentrate on, though there aren’t many undertaking such projects,” he says.
Coimbatore is very much on the fast track to growth. With the upgradation of infrastructure facilities, the residential and commercial real estate segment in Coimbatore is set to grow exponentially in the coming years.
Source: Times Property in The Times of India, Chennai