Why is Coimbatore Gaining The Favours Of Investors?

Investing in Coimbatore’s real estate has been a good proposition always. The city’s initial development can be attributed to the textile industry. Skilled labour flocked to the city from all over India.

Cut to the 21^st Century and Coimbatore has not lost its sheen on investors. It continues to be one of the sought after real estate market. Some of the important reasons are:

1. Thriving Manufacturing Sector
2. Well-developed Health Care Sector
3. Increase of retail activities
4. Pleasant climate

Coimbatore continues to be home to several textile mills which range from small to large in scale. Most of the textile produced is exported from here. Coimbatore real estate is slated to benefit with two of the SEZs constructed and five underway. The city is the second biggest software producer in Tamil Nadu after Chennai. The increase in IT services has prompted the construction of the TIDEL Park where IT majors like IBM, Cognizant and TCS are based. Automotive giants like Tata Motors and Maruti Udyog source almost 30 percent of automobiles components from here.

A mix of modern and traditional industries is fuelling real estate development in Coimbatore. The Erode-Tirupur-Coimbatore Industrial Corridor has boosted much of the realty market in Coimbatore. The corridor is slated to attract investments worth Rs 14,000 crore or more. Once the industrial corridor is constructed, 18 lakh jobs shall be created. The demand for flats for sale in Coimbatore has already increased and real estate developers expect prices to go up soon. Flats for sale in Coimbatore’s Avinashi Road are priced around Rs 4500 per sq ft. For other areas like Ganapathy, flats for sale in Coimbatore are available between Rs 4000 and 4500 per sq ft. The latter has shown an increase of 3 percent in per square foot rate within a year. Peelamedu too has shown a rise of 4 percent during this period and its average price is Rs 4800 per sq ft.

Thanks to the expansion of the retail and healthcare sector, Coimbatore has seen a lot of investment activities. The city is a retail hub for neighbouring areas, including Palakkad in Kerala. Buyers are mostly attracted to the goldsmiths and ornament sector that the city is proficient in. Coimbatore has also emerged as an alternate to Vellore in Tamil Nadu. The city also offers quality hospitals and nursing facilities but is not as crowded as Vellore. Therefore, treatment seekers can be attended much easily.

Coimbatore is slated to have its own monorail services which would connect various parts of the city such as RS Puram, Gandhipuram, Town Hall, Sai Baba Colony and Ganapathy. A northern and circular route has been planned for the city.

The high social, physical and civic infrastructure coupled with growth prospects make flats for sale in Coimbatore attractive to investors. The ticket sizes are small while the rates of appreciation are high which is why most investors are attracted to the city. As IT, retail and other new age industries expand in the city, the prices of property would increase here.