E-Commerce, Startups Help Coimbatore Garner Rich Rental Returns
As per a recent study by a leading real estate consultancy group, Coimbatore is recognised as one of the top 10 cities in India that provides low-priced real estate investment prospects. This manufacturing centre is a part of India's popular Smart Cities initiative. The Coimbatore-Salem Industrial Corridor along with other infrastructural developments such as the Gandhipuram Flyover, Ring Road, Western Bypass and Eastern Bypass will create a positive impact on the real estate market of Coimbatore. The corridor alone is anticipated to bring in investment of around INR 14,700 crore as stated by the Confederation of Indian Industry (CII) South. Good infrastructural prospects along with increase in property prices and annual rental yield makes Coimbatore a great option for investment. Demand for residential units in posh areas such as Avinashi Road, R.S. Puram and Race Course is increasing. However, many low-priced projects are coming up in Saravanampatti, Avinashi Road and Trichy Road.
MakaaniQ brings out top five localities wherein the rental rates have increased over the last few months:
Peelamedu is the hub for budding startups. The most desired areas of Coimbatore for setting up of offices are Coimbatore Hi-Tech Infrastructure (CHIL) and the Saravanampatti SEZ and the TIDEL Park located in proximity to Peelamedu. Infrastructural developments and affordable prices are the main reasons that attracts start-ups to Peelamedu. These start-ups encourage opportunities for the rental sector creating demand for rental apartments in Peelamedu.
In South India, Coimbatore is the biggest non-metro city for the e-commerce sector. In terms of software production, Coimbatore is ranked second in Tamil Nadu followed by Chennai. This commercialisation creates demand in different areas of the locality. Avinashi Road is one of the localities that has witnessed an increase in the rental rates because of the commercialisation and infrastructural development in Coimbatore. It is a posh area of the city but is facing traffic issues. This is the case with all the localities that have turned into commercial hubs. The traffic police of the city have decided to install six more traffic signals at Avinashi road - Codissia junction, Trichy Road -Sowripalayam road junction, Trichy Road - Perks school junction, Trichy Road -SIHS Colony junction, Sathyamangalam road - Kalapatti Road junction and Sathyamangalam road -Thudiyalur road junction. This will improve the livability score of all these prominent localities of Coimbatore.
In Coimbatore, more than 200 acres of IT campus is under development phase and around three million sq ft commercial office space is operational. These educational and commercial set ups are widely distributed in the city. Saravanampatti is an area wherein one can see this combination of educational and employment opportunities. The locality has educational institutions such as SNS College of Technology, SNS College of Engineering, KGISL institute of technology, Dr. SNS Rajalakshmi College of Arts and Science and KV Institute of Management and Information Studies. The presence of KGISL Campus, CHIL IT SEZ, KCT TechPark at Saravanampatti creates great employment opportunities thus pushing the rental rates of apartments in Saravanampatti. Moreover, rental demand is strong as such educational institutes add to the need of housing, thanks to outstation students and working professionals.
Ganapathy is another locality of Coimbatore that has witnessed an increase in the rental rates. The locality is well-facilitated with roadways and the upcoming ring road will further boost transportation in the locality. Even the airport can be easily accessed from here. Along with this, the locality has a well-established social infrastructure.
Podanur is highly preferred because of its affordable property prices. It works well for an investor who seeks rental returns. The locality has good livability score with 30 schools, 25 hospitals, 41 bank branches, 45 ATM's and 41 restaurants. Moreover, the locality enjoys proximity with Coimbatore Railway Station and the Coimbatore Airport. This creates a positive impact on the rental market of apartments in Podanur.