Track2Realty Exclusive: Coimbatore property market in many ways is an ideal investment paradise both for residential as well as commercial purposes. Its strategic location is also a traction point that attracts not only people in the South India but across the country. There are only a few property markets in India which has a fine balance between the residential and commercial developments, without one segment over-supplying and in the process over-shadowing the other.
What then stops Coimbatore to emerge as one of the major economic hubs? The answer to this in one single word is—Infrastructure. It is though debatable how far infrastructure in Coimbatore is lagging behind other major cities, yet what can be vouchsafed is that Coimbatore needs infra push for realty growth and big-ticket investments.
Infrastructure in Coimbatore has been a story of glass half full and half empty. While the city has seen tremendous growth of real estate in the last over a decade, the infrastructure has not kept pace with the urbanisation in the city. Having said that, Coimbatore’s infrastructure, both physical and social, is way ahead of many other tier-II and III cities in the South India and hence property buyers prefer this market ahead of any other market in the region. However, all the developers and analysts agree that the true potential of Coimbatore is yet to be unlocked and infra push can catalyse the urbanisation of the city on a fast forward mode.
As per the industry assessment, Coimbatore can have better infrastructure and higher growth in a range of sectors by addressing the challenges it faces now. Analysts believe it is high time that efforts must be made on to improve infrastructure and measures be taken on to expedite the Western bypass road development. The State Government should also focus on airport expansion and formation of a Greater Coimbatore Development Authority should be State-wide effort. The State should have four or five zones and development authorities constituted for each of these.
Now that the real estate across the country is looking for NRI buyers, Coimbatore has all the inherent potential to tap that segment and hence international buyers should be invited by showcasing state-of-the art hospitals, expertise, geographical advantages, better road infrastructure, adoption of technology by non-IT companies here, and finishing schools for some of the needs of the growth of the IT sector.
The real estate developers demand city planning with improved infrastructure is a must as Coimbatore has seen rapid urbanisation. The Master Plan should be finalised soon with more green cover for the city. They maintain what is urgently needed for better urban development is speedy approval of plans, and improved connectivity to suburban areas so that affordable housing projects are successful here. With increase migrant workers, the city today faces challenges in different areas such as health and urban development.
Ramakrishnan P, Deputy Managing Director, Sobha Developers disagrees that infrastructure is a challenge for big-ticket investments in the city. According to him, it is not entirely true that infrastructure is a challenge for big-ticket investments in Coimbatore. On a comparative basis, Coimbatore has better physical infrastructure vis-à-vis other Tier II & III cities in India. What is lacking is the determination by the concerned to look beyond tier I cities. The potential opportunity for growth in Tier II & III towns is exponential.
“Realty projects are, in fact, a resultant of a good industrial/services growth. It is a source of revenue to the local government. This, in turn, should help in paving the way for better infrastructure facilities,” says Ramakrishnan.
Sameer Chopra, Chairman, RE/MAX India, on the contrary, believes infrastructure has always been the major challenge in big ticket as well as small ticket investments in Coimbatore. Investing in land is always a risk. Money required for investment depends on the kind of plot-agricultural, commercial or residential-and ranges from lakhs to multiple millions, depending on the property type and location. Realtors should be very observant and smart in choosing the land space where the entry level costs are low and growth curve is high.
“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. 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,” says Chopra.
Some of the suggestions that analysts put forward for taking Coimbatore property market on a fast-forward mode are expanding the current international airport, completing the planned ring road within a short time, promoting more industrial park/SME hubs that focus on textile, engineering & automobile industries and creating better connectivity between various modes of transportation.
The developers maintain that the city market has just started maturing now and if the infra push is provided to them by the government, Coimbatore can well become one of the most developed cities of India. The very DNA of the city has it to make it a world class city, but then what comes in the way of potential and performance is the quality infrastructure, or rather lack of it.
Will infrastructure catch up in the city to make Coimbatore a property magnet ahead? Well, the developers wish so, the city desires this and policy makers promise their commitment to the cause. All this promises a turnaround of Coimbatore property market, but then between the cup and the lip the real estate is apprehensive of any slip.
