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Real estate price tumbles in Tirupur
It will not be an exaggeration if one says Tirupur moves on dollars.Any change in dollar value will, if not direct, have an impact on Tirupur’s economy as this knitwear town heavily depends on exports.
As the economy of the knitwear town of Tirupur revolves around garment exports, the fall of dollars against Indian rupee has had a cascading effect on real estate business.
Besides bringing down the cost of property, the sliding dollar has made a dent on the ever-busy construction activity here.
Added to the woes is the manifold rise in guideline value.
“First of all there is no flow of surplus money from business and those who have excess money with them are reluctant to invest on land and property because of the sluggishness in the market,” feels A. Senthil Kumar of Sakthi Promoters.
In Tirupur, everyone depends on exports and the continuous fall of dollars has created a fear and uncertainty in the minds of exporters.
They think twice before investing on properties, he adds. The psychological impact is more than the actual loss of prospects.
Mr. Senthil Kumar, who is into construction of apartments, says though the trend is catching up in the conservative town, value of property has come down by 20 per cent compared to the previous year.
“Those who want to own a house or land are the buyers now. Speculators are out of the business,” he says..
Tirupur Civil Engineers’ Association president K. Shanmugaraj says construction industry is taking a beating for the first time in the last one decade.
Most of the dealings do not go beyond the agreement stage.
Though there are a few promoters willing to launch apartment projects, the curb on use of space (floor space index – construction of building up to 1.5 times of the land) has discouraged them, he says.
The construction industry finds solace in the commercial buildings coming up in main market area, particularly for bankers and retail chains.
The abnormal increase in guideline value too has impacted the industry, feels R. Eswaran of KRC Group. The land cost in prime locations has skyrocketed preventing builders construct apartments.
A smaller but significant group that has been hardly hit is the brokers. The real estate agencies and small-time brokers who thrived during heydays of a boom period are now struggling to meet ends. “Initially we thought it is a temporary phenomenon and very soon everything will be back to normal,” he says.
M. GUNASEKARAN
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