Property in Coimbatore is currently going through a good phase. Buying a house in Coimbatore is now back as an agenda for many buyers and the demand for furnished and well maintained houses have increased over the years. Builders too are supplying the young buyer with options that suit the pocket and tastes. Real estate in Coimbatore is seeing good times again after a little lull.
Coimbatore is known for its industrial and commercial excellence. Being a significant contributor to the name and fame of the State of Tamil Nadu, Coimbatore remains high on a real estate investor’s list. Referred to as “Manchester of South India” the city is a major contributor to the state of Tamil Nadu’s GDP.
Coimbatore is distributed into four areas: North, Central, South and East. Known as the Textile hub of Tamil Nadu, it is the East Coimbatore that has major textile industries. Central Coimbatore is the commercial nerve of the city marked by offices, industries, shops and market places. The city is surrounded by the mountains on the west, and reserve forests towards the north. Hence properties in Central and East Coimbatore are the most expensive due to their sheer commercial nature and hence buying a house in or around these areas of Coimbatore can be little heavy on the pocket.
Realty prices are high due to the commercial importance and role of the city which remains the major factor of increase or decrease in the property prices. For a house in a multistory building the real estate rates are in the range of Rs 3500 per Square Feet to Rs 5500 per Square Feet (Jan 2012-Mar 2013). The prices are bound to rise as the demand for houses are increasing and a well-furnished house doesn’t stay vacant for long. But while buying a house in Coimbatore, end users and investors are more inclined towards villas, plots and independent constructions. The trend has caught on pushing the prices of standalone property to new heights and prices even match to that of Delhi and Mumbai.
Though undeveloped plots are easy on the pocket but built up villas having 1/2/3/4/5 bedrooms come in the range of Rs 17 Lakhs to Rs 2 Crores (January 2013 to March 2013). The trend is peculiar to Coimbatore as it is easy to buy land here as compared to other cities; buyers prefer independent houses to apartment or multistory kind of constructions.
Trends in property in Coimbatore reflect a tendency to climb. Reasons may be many; the city is an industrial, IT, BPO, textile, educational and a tourist hub. Recently the investors and buyers had withdrawn from the market, not because of lack of money, but because they knew the prices were inflated unreasonably. But the last quarter has seen the buyers coming back to the market and investors again taking interest in properties, especially in the suburbs. The last quarter i.e. January to March 2013 saw a spurt of around 5 to 10 per cent, backed by good demand and supply mechanism.
The last two years had seen a growth of 25 to 35 per cent which was due to the increased labor and construction costs. The market took a negative turn as the intelligent investors knew that this was an unreasonable growth. They decided to wait and watch and gradually the real estate market corrected itself. The major badgering was transferred to the middle class buyer who dreams of owning a house in Coimbatore but found the prices out of his reach. Now the spring is back and so are all kinds of buyers and investors.