By: Ravi Sinha
Track2Realty Exclusive: The steady growth of the Coimbatore property market even in the wake of the overall economic slowdown makes it a curious case for many analysts. It is convenient to say that the market of Coimbatore real estate is by and large end-user driven and hence a realistic market to sustain the effects of slowdown.
But then, most of the property markets across South Indian cities are end-user driven, yet there is visible unrest borne out of lessening demand. It is not the same in Coimbatore and that makes it a jewel even among the realistic property markets of South Indian cities.
What, after all, makes Coimbatore property market different from other neighbouring markets? In other words, what are the catalysts fuelling the demand drivers in this market? The answer probably lies in the social infrastructure of the city. Coimbatore has got the entire infrastructure required for an industrialised economy.
True to the composition of a prospective metro city, Coimbatore has a well-developed social infrastructure including hotels, health services, recreational spots, research institutions, professional colleges, a couple of universities and one deemed university and commercial complexes.
In terms of market drivers, the city is the second largest software producer in Tamil Nadu with presence of established global companies like Cognizant, TCS and BOSCH. The strong educational institutional set up is setting a strong base for new companies to enter the city. All this is a collective catalyst to the economy which, in turn, is also fuelling the property market and its investment pattern.
The physical infrastructure in Coimbatore is equally impressive with the operational L&T bypass (Trichy Road) and Avinashi road providing seamless connectivity to the city centre. The four lane roads ensure smooth flow of traffic without congestion. But it is the social infrastructure of the city that makes it an ideal destination to invest in the local property market by the end-users.
Coimbatore being a hub of educational institutes and centre for medical facilities in the region has a matured social infrastructure that makes it a haven for social living and economic activities.
Take the case of Ganpat Pariyar, a resident of Chennai who has only recently invested in the Coimbatore property. He believes apart from the demographic factors and economic reasons to set-up his software business in the city, the priorities for family, like schools and hospitals was at the top the list while theatres, clubs, etc. in the vicinity was just icing on the cake. Having born and brought up in Chennai, he nevertheless preferred to invest in Coimbatore’s property market and settle here.
It seems developers in this market are conscious of this growing need of the emerging tier-II city and hence they take cognisance of social infrastructure facilities while purchasing land for their projects. Brokers assert in general high priority is given to social amenities while picking up the location of the projects, as good social infrastructure pushes sales automatically.
For those who are opting for development on the outskirts due to cheaper land cost, they supplement poor facilities by providing as many amenities as possible within the project itself.
What makes it possible is that vast stretches of land are available in distant suburbs of the city. Moreover, land cost not hitting the roof, makes it possible for the developers to have social infrastructure in place. Other competing cities probably don’t have this luxury of choice.
…to be continued
