The emerging destination
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The real estate market in Coimbatore constitutes office, retail, residential and hotel segments, writes M. SOUNDARIYA PREETHA
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Photo: S. Siva Saravanan
STUDY: Ravi Sam, Chairman of the Confederation of Indian Industry, Coimbatore Zone, releasing a research paper on ‘Coimbatore Real Estate.’ Ramesh Nair, Managing Director of the Jones Lang LaSalle Meghraj Chennai and Hyderabad Region (third right) is seen in the picture. –
Coimbatore is likely to emerge as a favourable destination for real estate investment in the long run.
There is a huge potential for local, national as well as international developers, according to a study report “Coimbatore – An Emerging Real Estate Destination” brought out by Jones Lang LaSalle Meghraj, a real estate consultancy firm.
The report was released during a panel discussion organised by the Confederation of Indian Industry, Coimbatore, recently.
Ramesh Nair, Managing Director of Lang LaSalle for the Chennai and Hyderabad regions, said Coimbatore has the potential to develop as an alternative Information Technology and biotech destination. It has telecom, power, skilled workforce, infrastructure development and a pro-active Government to promote it. The following are some of the points highlighted in the study.
Advantages
Coimbatore produces over 30,000 engineering graduates annually. Companies such as Cognizant, Wipro and Tata Consultancy Services have already invested in the city. It has the highest textile activity per square kilometre in the world and accounted for 84 per cent of the textile machinery manufactured in India.
Overview
Coimbatore is the second largest industrial centre in Tamil Nadu, next only to Chennai.
The major industrial areas in Coimbatore are Peelamedu, Singanallur and Uppilipalayam.
A city whose growth has been driven by industrial development is moving towards a metropolitan culture and hence the demand for real estate has grown.
The real estate market here constitutes the office, retail, residential and hotel segments.
Office space
With 1.57 million sq.ft office space (as of end-2008), the Coimbatore commercial office market is likely to quadruple in the next three to four years.
The office market is found in Central Business District (CBD), Secondary Business District (SBD) and Peripheral Business District (PBD).
The CBD includes Avinashi Road, RS Puram, 100 ft Road and Nanjappa Road.
This has mainly non-IT buildings and the demand is driven by industrial, banking and financial services tenants.
The SBD includes Trichy Road, Mettupalayam Road, Saibaba Colony, TV Samy Road, Pankaja Mills Road and Circuit House Road.
This area also has mainly non-IT buildings. However, in the future it can see the entry of a few IT parks.
The PBD consists of Pollachi Road, Sathy Road, Palakkad Road, Kovaipudur and Saravanampatty.
This is the emerging IT hub of Coimbatore with 91 per cent of the total area being IT space.
The Coimbatore office market is dominated by local developers.
Retail market
The retail market is segmented into High Street and Retail Malls and the prime retail activity is on the Avinashi Road, Trichy Road, R.S. Puram and Mettupalayam Road.
The study says that Coimbatore has joined the shift towards organised retail market with about a million sq.ft. of retail mall space expected to come up by 2011.
Two malls that are under construction are likely to be operational by 2010-2011.
Residence
Coimbatore has four micro markets and there is a major shift from independent houses to apartments.
Hence, developers are offering a mix of individual houses, twin houses and apartments. This segment has seen entry of national and international developers into Coimbatore.
The residential market is likely to see a future supply of over 3,300 dwelling units by the end of next year and nearly 1,100 more dwelling units are proposed.
Hotels
Hospitality sector in Coimbatore is in the growth phase with opportunities for new entrants.
The hotels have seen over 60 per cent occupancy rate during the off peak season and this goes up to 90 per cent in the peak season. With two five star hotels and one four star hotel under construction, the average rate is expected to grow.
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