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
Coimbatore transforms into a commercial hub:cheers:
Coimbatore, popularly known as the Manchester of South India, is a shining example of how private entrepreneurship can transform a city into a commercial hub of economic centre. The city can boast of its remarkable strides in varied fields due to private sector initiative and entrepreneurial spirit of its residents.
The city has 280 textile mills in the medium and large-scale categories. It produces 2000 million kg of cotton yarn annually and the nearby Tirupur has emerged as the biggest hosiery town in the country. Moreover, 40 per cent of the country’s requirements of pumps and motors are manufactured in Coimbatore. There are nearly 100 IT/ITeS companies operating in the city and five software parks dotting the skyline. The IT software export from the city is considered to be about Rs 150 crore. It is no wonder that a survey has rated the city as the tenth fastest developing city in India.
When there is economic development, can real estate growth be left far behind? The reverberations have already been strongly felt on the spiralling real estate prices with residential and commercial property prices zooming over the years. The demand for real estate development drove developers from neighbouring states to expand their business operations.
The city’s existing area of 105 sq km is being expanded to cover an area of 236 sq km. The city’s infrastructure will get a virtual boost with the injection of Rs 500 crore fund to give a facelift to the city. Work on the 150 ft outer ring road has begun.
Of late the city is becoming the ideal destination for senior citizens due to its salubrious climate, availability of water and medical facilities. Covai Property has a well-established senior citizens project. Veteran developer Sreevatsa has recently launched comfort homes in Saravanampatti. The first phase of 43 villas and 80 luxury apartments is nearing completion, and Sreevatsa Comfort Homes is planned in second phase.
As regards real estate scenario, there are over 100 developers catering to the demands of residential and commercial properties. Out of which, 12 leading developers have an established track record over a period of years. The influx of property developers from neighbouring cities has led to a fierce competition among existing players. Over 5,000 apartments are under varying stages of construction in and around the city.
With the soaring land values, input and labour cost, property developers are facing hard times to mobilise manpower and other sources to sustain their operations. A few developers have wound up their operations some time ago. While land prices are up by 300 per cent in a span of 10 years in major cities across the country, Coimbatore witnessed land prices a similar hike in a span of just three years. As a result apartment prices have touched a minimum threshold limit of Rs 3,000 per sq ft. Apartment prices for select projects on Race Course Road touched an all-time high of Rs 10,000 per sqft for high-end homes.
The rate of price appreciation for apartments is over 200 per cent in a span of six years in areas like R S Puram, Ram Nagar, Ramanathapuram, Saibaba colony and Tudiyalur. In prime areas like Race Course road, apartment prices are up by 200 – 300 per cent in six years for high end homes.
With the cost of construction up by 25 per cent, property developers are finding ways to reduce the size of the apartments to sustain their operations. A majority of the residential developments are through joint venture with the landowners.
Unlike earlier, the demand is more for built units than for units under implementation, says V Jayaraman, Executive Director, Sreevatsa Real Estates Pvt Ltd. There is a growing demand and steady absorption of apartments in the price range of Rs 30 lakh – Rs 40 lakh. The price resistance is visible for units priced beyond Rs 40 lakh. Villas are in demand upto Rs 2 crore.
New projects boosting Coimbatore Realty Sector:cheers:
Coimbatore is slowly emerging as a real estate hot spot destination. The city seeing increased demand in both residential and commercial segments therefore real estate values too, witnessed appreciating trends during the Jan-Mar 2012 period. According to Govind Shankar from Shankar Properties, “Capital values of plots and apartments witnessed an average escalation of 10-15% across the city in past three months while the rental values noted an escalation up to 30% during the same period”.
Availability of space at less unit value is the unique selling point of the city and this is gaining popularity with investors, buyers and developers from within the city and from neighbourhood cities, added R David city based realtor from Today Property.
Opening up of IT parks by government as well as by private entities and viz a viz expansion of the local textile industries has created surplus job opportunities in the city and henceforth demand for homes. This has resulted in an array of new developments across the city as told by K Yuvraj from Kumar Associates.
In the residential segment there has been a surge in the launch of affordable and premium projects in the city. A buyer can book a 1 BHK apartment starting at Rs 15 lakh to a premium 4 BHK apartment priced at over Rs 1crore. On average capital values of newly launched apartment varies from Rs 2,000 – 4,000 per sq ft depending upon locality, specifications and other qualitative features.
Most of these projects are located at Sanganur Road, LGB Nagar, Saravanampatty, RS Puram and Trichy Road. Some key developers in the city are Shriram Properties Pvt Ltd, Sahara City Homes, Ramani Realtors Private Limited, Sobha Developers, Oasis Group, True Value Homes etc.
According to Ravi Baja, property consultant at True Value Homes & Constructions, “Improving infrastructure, connectivity, and public transport coupled with enhanced job sector has uplifted Coimbatore realty sector.”
Real estate Coimbatore is steadily progressing and demand is more in the affordable segment. There has been a 20-30% increase in the number of transaction in the newly launched segment. The upcoming projects are expected to further boost the real estate values in the city, say city realtors.
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