Slow Growth in Real Estate Coimbatore
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Laxity in promoting Coimbatore as next IT destination after Chennai,time-consuming approval process, speculative land prices, conservative nature of people and lack of political clout are some of the key reasons identified behind the sluggish growth in real estate in the techcity. Speakers at a forum organised by Confederation of Indian Industry (Coimbatore) and Jones Lang LaSalle Meghraj (JLLM) here on Tuesday. However, believed the realty sector has enough potential and it is poised to pick up growth in about six months to one-year.
In his presentation on Coimbatore Edge, Ramesh Nair, managing director of JLLM, Chennai and Hyderabad regions said branding Coimbatore, as a single entity is very important for the growth of the city. Also, the city has the capabilities to be promoted as a highly promising alternative IT/ ITES and a biotech destination. “There is a huge potential for local, national as well as international developers in the real estate sector in Coimbatore,” Abhishek Kiran Gupta, Head – Research, JLLM said. He cited high literacy rate, more number of people graduating out of many renowned colleges and the city’s contribution to the growth in the per capita income of the country.
“Coimbatore is a self-made city and we haven’t had a trigger point yet. If only the city had got an IT park five years ago when Chennai got it in 2000, it would have propelled a greater growth today,” said Ashok Bakthavathsalam, managing director, KG Information Systems. D R Sekar, chairman, Builders Association of India (BAI), Coimbatore Chapter added that getting approvals for land and buildings have been a difficult and laborious process in Coimbatore and whole of Tamil Nadu.
“Compared to other neighbouring states, the approval process takes a long time in TN and therefore all promoters are shying away from investing in the state,” he said, adding a single window system is the need of the hour. Rajesh B Lund, vice president of Confederation of Real Estate Developers Association of India (TN) said, apart from the delay in approvals, the market fell when the new projects were about to take-off. “It led to a lull in the construction industry,” he added.
Of the proposed seven SEZs in Coimbatore, only three including Tidel Park are under construction now. Likewise, many companies evinced interest to build malls in the city but today only two projects – Brooke Fields and Fun Republic are getting ready. “The lack of night life in Coimbatore and the delay in IT infrastructure has led to slowdown among retail mall developers,” said A Sridharan, managing director, Covai Propery Centre. “Coimbatore is not a modern city and it is also conservative and not used to mall culture. But, after these two malls start operations, people will get used to it,” added Mr Sekar. Also, with the new generation starting to work, the city is bound to catch up with experiencing a new culture”, he said.
On land values, Mr Rajesh Lund said though prices have dropped drastically compared to the all-time high in 2007-08, the landowners still stick to the high prices and are not willing to sell lands. About the city attracting big investments, he added, once infrastructure falls in place investments would automatically flow in. He also hoped that non-resident Coimbatoreans would return to the city and invest here. Mr Ashok added that with the opening of the Tidel Park and the IT-SEZ in Keerenatham village, nearly 16,000 seats would be created in another 1 to 1.5 years time. “If these new professionals are to come to the city, then there would be huge demand for affordable housing and also serviced apartments,” he added. Already leading promoters in the city have planned to construct budget houses costing Rs 15 lakh to Rs 20 lakh each.
HDFC branch head S Ramesh Kumar expected the market to pick up since the costs have come down. “Also with the fall in interest rates, a large number of people would be attracted to real estate now,” he said, adding the future trend also points to a reduction in interest rates.
Please post your thoughts about the Coimbatore city in the comments section. Also mention what you like and dislike in Coimbatore?
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Vivek said:
“Coimbatore is not a modern city and it is also conservative and not used to mall culture. But, after these two malls start operations, people will get used to it,” added Mr Sekar.
Coimbatore is the city which living in cosmopolitan from the past. I think you must know before comment like not a modern city. It’s a pool of young tech people(not only IT).
Mall culture not used to any of the Indian cities before some years. Don’t talk like by birth everybody used to mall culture.November 23rd, 2009 at 10:11 am -
krishnas said:
Hello Vivek,
Thank you for the comments.
Coimbatore is real good place to enjoy our life. What I really worry is, these tech people will spoil the city like Bangalore and Chennai because of the traffic,pollution,ect. They should not destroy the nature in the city.If you look in Bangalore, it was very cool because of the tress every where in the city. But, now they cut all the trees only buildings every where. I don’t agree that development is not just bringing the companies and malls. They should maintain the nature.
Thanks,
KrishnaNovember 23rd, 2009 at 5:04 pm -
Vivek said:
Hi Krishna,
I have given a comment for Sekar’s statement. I noted that. His statement seems to be discouraging the Coimbatore city and its value.Eventually, development means cutting trees, pollution and population this is a formula of our Indian cities. Anyway, already there is no cultivation most of the area near by Coimbatore. Only our nature source is western ghats. At the same time living without any facilities, infra development doesn’t mean living with nature.
November 27th, 2009 at 7:19 am -
krishnas said:
Hello Vivek,
I would agree with you. The development of all the facilities in the city is good. I was more interested in seeing those developments in all the city. I have changed my mind set now, because the government and politicians they are mis using their powers and goving approval for all the real estate people. I never appreciate one who construct a building where few years back there is a lake. It happened in chennai and bangalore. There is no proper drainage facility. Do you think these are the healthy developments. If you don’t know the fact I will tell you one thing, from the research it shows that India will suffer the sever productivity after 20 years because the peopel who die from heart diceses will be very high.
If India is destroying the agriculture, it is going to be very serious after 5-10 years. As arundatiroy told, there going to be blood shed every where if the congress not focusing on the common people and making only rich getting richer.
http://timesofindia.indiatimes.com/india/What-Muslims-were-to-BJP-Maoists-are-to-Congress-Arundhati-Roy/articleshow/5159882.cmsThank you for the conversation.
Thanks,
KrishnaNovember 28th, 2009 at 5:58 pm -
Vivek said:
Hi Krishna,
I think you havn’t get my point from the begining. I wanna clearify somethings to you.#1 – If you have time, travel along with your family that too with your child in a two wheeler from cbe to mettupalayam vise versa. After traveling you will definetly think about the unsafe journey. You can see british concerete road untill now and it’s very slipery and road is in a bad condition, such a narrow road and heavy traffic in that total strech. Likewise Trichy road(now only works started but it’s too late). Yesterday only I read in hindu widening NH-47 Avinashi road. This is also expecting from long time.
http://www.hindu.com/2009/12/03/stories/2009120354450500.htm
#2 – Making these kind of things better is called Infra development, facilities when talking about a city. Not the private aparments nor buildings that too as you told constracted in the lakes. This is what I specified before.
#3 – How your attached link is related to this topic!? We are talking about Coimbatore and you are taking this topic in a different track. But anyway my suggestion is below #4
#4 – I’m living in Singapore past 5yrs. Here also poor is there. But you can’t see that difference like India. Even poor and rich staying in the same building called HDB and travels in the same public transport. Like that if you get 1lac or more per month behave like this. Dont buy a car and dont buy or stay in rich apartment that too which constructed in the lakes and also government has to create like that infra. Do you understand now what I mean by Infra development.
December 4th, 2009 at 1:06 pm
