COIMBATORE: An upbeat mood prevails among real estate buyers in Coimbatore, particularly after Diwali and the sentiment is better compared to last year, according to Rajesh B Lund, President, Confederation of Real Estate Developers’ Associations of India (Credai), Coimbatore.
The association, in an effort to woo the NRIs, who account for about 20 per cent of investment in real estate in Coimbatore, is organising its property show styled `FAIRPRO’ in the city on Jan 3 and 4, 2015, marking it the first time it is organising two FAIRPROs in a year.
Speaking to newsmen in Coimbatore ahead of the realty fair, he said the mood among the property buyers was much better, particularly after Diwali and it was `upbeat’ and he expected good business from the fair. He said normally, the annual edition of FAIRPRO was organised during August by CREDAI, Coimbatore. But this year, it decided to hold an additional edition of the property fair at the beginning of the year in January with a view to cater to the requirements of the NRIs visiting their home land during the vacation.
Lund estimated that the NRI buyers accounted for about 20 per cent of the property purchases in Coimbatore. Apart from the districts in Tamil Nadu bordering Coimbatore, people from Palakkad district in neighbouring Kerala also evinced interest in investing in real estate in the city.
While conceding that the new project launches during 2014 were fewer in Coimbatore compared to the previous year, he said some of the launches could have been delayed as the promoters would have awaited all statutory approvals before launching them. But the overall status of the realty market here was better compared to many other cities.
On the issue of service tax levy on new property purchases which pushed up the overall cost of acquisition, he said that with the Government not inclined to relax the levy, the buyers were left with no choice. The developers also had to contend with frequent increase in input costs like rise in cement prices which upset their project cost calculations and hike in labour costs, making it difficult for them to cut prices.
Lund hoped that with the State Government promising mega investment in infrastructure development in the city, the city would expand, giving a further push to real estate development in the city.
The FAIRPRO has attracted participation by 25 member developers of Credai and on show would be about 50+ properties with prices ranging from ?20 lakh to ?3 crore. Banks and HFCs also would have stalls offering various finance options.