With land value rising, it is boom time in Erode
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It has risen from Rs. 200 a sq ft to Rs. 1,200 a sq ft, writes R. Sundaram
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It is not just Coimbatore, but this entire region that has seen an active construction industry in the last couple of years. While the major driving force in Coimbatore is the expected large-scale take off of the information technology sector, it is the busy textile industry in Tirupur. Not to be left behind is the neighbouring district of Erode. Erode District also has a happy story on the real estate front. Thanks to the industrial growth, despite increase in land price
and material cost, construction activity in Erode and surrounding areas is on the rise.
In and around Erode, nearly 5,000 buildings are under construction.
Erode, being an agriculture-oriented district, many farmers own huge tracts of land. But several of these lands are turning into house sites. Though some are sold at exorbitant prices, availability of financial assistance has helped consumers.
Apart from the land costs, prices of cement, iron and other materials have increased abnormally, said president of the Erode District Civil Engineers Association R. Mohanraj. “The prices of all the building materials have risen by 45 per cent and consequently the construction cost has reached Rs. 650 a sq ft. Still some people are ready to construct houses,” he said.
Since the rental values have also gone up, many of those who construct houses are also renting it out.
In Erode, some five years ago the land value was Rs. 200 per sq ft on Perundurai road, Sakthinagar and Thindal area. It has now shot up to Rs. 1,000 and Rs. 1,200 per sq ft. Even in Perundurai road no site is available and many buyers are willing to pay a premium price for the land. In Gobichettipalayam and Sathyamangalam too land cost has increased.
For builders, one problem is shortage in workforce. Now the wage has increased to Rs. 210 a day as against Rs. 150 paid a few months ago.
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