Coimbatore has been a major centre of textile, manufacturing, automobile parts and mills for a long time. Now, the city is fast evolving as one of the primary IT hubs of India. It is also the fastest growing Tier II city in India. With the maximum number of engineering colleges in south India, the city produces over 30,000 engineers every year. To tap into this pool, large companies like TCS, Cognizant, Robert Bosch and Pricol are setting up their bases in the city, in hopes of rapid growth.
Businesses and industries have acquired large lands. The boom in the IT sector has also pushed up the evolution of small and medium enterprises. Students, employees, and employers continue to pour into the city and as accommodation becomes crucial, real estate has picked up momentum and gained further importance as an investment asset.
- Coimbatore is a popular tourist destination attracting thousands of tourists every month. The tourism industry requires hotels – both big and small – for growth. Big hoteliers like Taj, Meridien and Kennilworth have acquired over 10 lakh sq. ft. of land. The hospitality sector has witnessed an increase in occupancy by over 14%.
- High street shopping in Coimbatore is expected to spread over 4 million sq. ft. within the next two to three years. Addition of shopping malls is predicted to further boost the economy. Hence, in light of the IT parks, hotels and malls being planned, the real estate market is set to experience an upward boom.
- The city has excellent connectivity. The Coimbatore International Airport is located at Peelamedu, 13km from the centre of the city. Coimbatore Junction is the main railway station serving the city. It is the second biggest and revenue yielding railway station, after Chennai Central, in Tamil Nadu. The suburban railway stations serving the city include Coimbatore North Junction, Podanur Juntion, Irugur Junction, Madukaarai, Peelamedu, Singanallur, Sulur, Perianaikanpalayam and Somanur. The National Highway 544 connects Coimbatore to major centres in Tamil Nadu and Kerala.
- Adequate sports facilities along with easy transportation has helped enhance quality of life, attracting greater traction of residents into the city.
- Currently, real estate is booming at a rapid pace. The fast turnover of properties is a striking features of this growth in the city. Despite sky-high prices, residential projects are attracting the attention of investors and end users.
- Gandhipuram, Avinashi Road, and the Town Hall area are some of the major commercial areas with economic activities concentrated here. These popular areas also offer some of the best real estate properties in the city. Around three special IT Economic Zones have been set up here, with the Government offering special schemes to promote real estate activity.
- The residential realty market has been divided into four micro markets akin to the four regions. What initially started as a bias towards buying and renting independent houses, has now shifted towards apartments with the advent of white-collar jobs.
- Rising city population and cheap resources including both land and labour, has attracted builders and real estate developers to build houses and residential apartments to meet the high demand.
Property sales in both residential and commercial sectors has picked up. Property prices have gone up. Even though there is a risk that such high rates can flatten out the market soon, the industry hopes that workers pouring into the city will keep the demand for housing firm.
Considering the fast appreciation in the real estate market, it is worthwhile to invest in the market as a business proposition.
