Real estate industry witnesses a construction boom
Construction industry in India, the second largest sector after the IT sector, is currently going through a great transformation with an increasing demand for commercial and residential units.
Coimbatore has already won the confidence of the IT majors and thus has the result. Coimbatore is an investor-friendly city and the local body has planned a massive infrastructure investment plan for it. The region is becoming a hub for the service
sector. In view of these developments, the real estate industry is witnessing a construction boom at present. Prices and demand are set for an upward movement. A number of sprawling townships surrounded by parks and well-laid pavements are under construction.
The current real estate boom in Coimbatore in which land prices have gone up by 100 per cent in the last one year is due to the unabated interest shown by the investors. The existing trend looks sustainable for another few years because of the increased demand for housing than by speculation. Every individual now is in an urge to construct a new house, or own a flat. Many property developers from all over the country now chosen Coimbatore and started construction of their townships, malls and flats.
These are the factors that are conducive to sustain the boom in the construction industry at present, though the following dampening factors also to be considered.
1. High land cost is preventing the big industrial houses from setting up their ventures here.
2. There is a considerable delay in getting the building plan approval. Coimbatore Development Authority is to be formed in place of local planning authority which has limited powers and building approval plan is a time consuming process under the present system.
3. Rising cost of construction materials such as cement, steel and blue metal is a inhibiting factor to the growth of the construction industry.
4. The shortage of skilled manpower and low productivity lead to delay in projects and non-committals.
5. Lack of adequate mechanisation and adoption of new technologies vis-À-vis the fast growth of the industry.
6. Cement price has gone up and the impact on consumer will be Rs.30 to Rs. 40 a sq.ft. of apartment space.
7. Inadequate rail connectivity to important cities like Bangalore, Chennai, Hyderabad and southern districts and the general neglect of this city by the railways.
8. The proposed infrastructure development fund is an added burden to the consumer.
G. SRINIVASAN, Chairman, Builders’ Association of India, Coimbatore centre.
Printer friendly
page
Send this article to Friends by
E-Mail
Property Plus
Coimbatore
