Coimbatore Means Growth
The renowned Manchester of South India is seeing some fast action in the real estate circuit.Unlike other cities, the vibrant city of Coimbatore has come up predominantly due to private sector initiative in varied fields. Now the government has given a virtual boost by declaring the city as the next destination for the IT sector. The city has notched up significant slots in major industrial areas. It contributes ten percent of the country's automobile ancillary production. A number of educational institutions ensure adequate availability of skilled manpower. As a tier III city gaining momentum, real estate costs are comparatively better than metros and the cost of living is also comparatively cheaper.Coimbatore contributes 10% of the country's automobile ancillary production
Residential property prices range from Rs30 lakhs to Rs50 lakhs in city areas and Rs20 lakhs - Rs40 lakhs in suburbs. Currently, demand for housing has been estimated at 800-1,000 apartments. Apartment prices almost doubled in prime locations due to hike in land prices. Unlike other cities, Coimbatore is yet to experience influx of larger companies to establish their facilities. One of the constraints may be the long pending expansion of its airport. The proposed direct flight connectivity to countries like Singapore, Dubai and US may give a virtual boost to the city's air connectivity. The Airports Authority of India (AAI) is implementing modernisation and expansion projects at six airports including Coimbatore and Madurai.
The financial allocation for these projects by AAI is Rs227 crores this year. As for Coimbatore, plans are afoot to expand the present apron and terminal building. A number of mid-size foreign companies from US, Middle East and Europe are making a beeline now to establish their presence in the city. Hansen Transmissions International of Belgium has decided to invest Rs970 crores to set up a plant for producing gearboxes for wind turbines, according to reports. The plant will become operational by end of 2008.Investments from Saudi Arabia, Ras Al Khaimah Investment Authority and US based Control Components Incorporated (CCI) are significant additions to the all-round growth of the city.
The development will involve an 18-hole golf course, mall, hospital and a residential development of over 650 acres.Land prices zoomed in anticipation of the demand and a number of property developers are now going slow due to unviable operation at the current price level. As there has been continuous price resistance, land prices have dipped now by 40 percent and instead of property developers chasing the landlord, it is the other way round.Retailing is on the upswing with major brands across the country making a beeline to start operations, according to a survey done by Jones Lang LaSallee Meghraj, property consultants.
The traditional retail areas are Crosscut road, Oppanakara street, Raja street, 100 Feet Road, Dr Nanjappa Road, DB Road, Thiruvenkata Swami Road, Avinashi Road, NSR Road, Tiruchi road and Mettupalayam Road.Avinashi Road is the most sought after retail area now, and five malls are proposed on this road alone by developers like Real Value, Zee group, Presidium Constructions, PS group and ECIL. Brookfield Mall is coming up in the vicinity of Avinashi Road as well.
