Coimbatore: The fast developing Coimbatore-Tirupur-Erode Industrial Corridor is all set to give a boost to realty in Coimbatore. Industries and developers are already gearing up for the upswing.
"Coimbatore has traditionally been an economy that was primarily dependent on textile. The advent of the Industrial Corridor is slowly changing the economic scenario. Even upto a couple of years back it was a few IT and Healthcare industries that set up shop here. What the industrial corridor is doing is driving the market even while it is still coming up," says Hiten Parek, CEO of Deven Auto Parts, who recently bought a large land parcel to expand his factory further, in the vicinity of the corridor.
According to sources from the Confederation of Indian Industry (CII) South, the corridor is expected to attract an investment of about Rs 14,700 crore to create further infrastructure. This in turn is expected to create investment opportunities to the tune of about Rs 43,000 crore. Sources are predicting creation of jobs for approximately 18 lakh white and blue collar personnel. This has already translated into residential developers planning to expand their offerings.
As per informed sources, a large established developer is in the final stages of negotiating for a 10 acre land a short distance from the corridor, to develop the area's largest luxury apartment complex. "We are aware of the growth potential of this region, hence the plan is to develop a project here that would be the basis on which all our future projects will be valued," says the marketing head of the company.
Land prices have already reported a marked increase. As per the latest PropIndex (Jul-Sep 2014), the quarterly report on the Indian residential sector brought out by Magicbricks, key areas like Saibaba Colony, Ganapathi, Peelamedu and Saravanampatti reported a noticeable increase in property values. While the former two recorded a 6 per cent increase, the latter two saw a moderate 4 per cent increase.
"Land costs will go up significantly as the Industrial Corridor becomes operational," predicts Parek. "We also expect this to have an impact on the construction costs. Property prices are going up steadily and going forward, I would expect the prices to progressively increase by at least 10-15 per cent in the next few months."
What is further spurring the growth is that this corridor is close to other upcoming corridors. According to a Jones Lang LaSalle study, the Kochi-Coimbatore-Thiruvananthapuram area is an emerging metropolitan hub and the Coimbatore-Tirupur-Erode Industrial Corridor will contribute further to the industrial growth of the state.
"We need to realise that these cities are small in terms of area," says Vishnu Srinivasan, proprietor, Visesh Realtors, a Chennai based real estate agent, who opened a branch office in Coimbatore a few years back. "Tirupur is just 50 km from Coimbatore and both these places have been established business centres for generations. Before, it used to be restricted to textiles and small automobile parts manufacturing units. But with greater global awareness the very same companies expanded their operations, resulting in small auto units developing patented specialised gear boxes that have takers among racing enthusiasts in the international market."
Several players in the higher education sector have bought land in the Coimbatore-Tirrupur-Erode-Salem area with an eye to developing areas along the NH 47 into a knowledge hub.
All in all being a small city sure has its advantages.