Property Investment in Coimbatore: A Comprehensive Overview

Coimbatore, the second largest city in Tamil Nadu, is currently ranked as one of the top locations for real estate investment. The city offers affordable residential properties with the potential for substantial returns in the future. Thus, if you want to know about property investment in Coimbatore, come along!

What is Property Investment in Coimbatore?

Coimbatore, known as the 'Manchester of South India', is undergoing development as a smart city by the Indian government as it has been selected as one of the 100 Indian cities to participate in the Smart Cities initiative's development. Since then, this city has experienced increased demand for residential properties and increased market value.

The city is experiencing rapid economic growth, infrastructure, job opportunities, and living standards. With the establishment of the IT and ITES sector in a prime location, professionals from across the country have chosen to settle in Coimbatore.

Factors To Consider Before Property Investment in Coimbatore

Economic Growth

Coimbatore has a strong and varied economy that provides a solid base for investing in real estate. It is called the "Manchester of South India" because of its thriving textile industry. The city is also a key manufacturing, engineering, and information technology centre. The city's numerous multinational companies like ABT info systems, Aperta, Dutch Plantin Coir India, FEIN Power Tools India and industrial parks like Anna Industrial Park and Kisan Park Industries create a consistent need for commercial and residential properties, making Coimbatore an attractive investment option.

Infrastructure

In recent years, Coimbatore has experienced significant growth in its infrastructure, establishing itself as a city with promising prospects. The town features strong connectivity through well-maintained roads such as Trichy Road, Mettupalayam Road, Palakkad Road, and Pollachi Road, as well as the Coimbatore International Airport, which serves as a key transportation hub for the industrial areas of Coimbatore. Additionally, the upcoming Coimbatore Metro Rail project is set to improve internal connectivity within the city. Coimbatore is well-linked to major cities like Bangalore, Mumbai, Delhi, and Kolkata through national highways like NH 544, NH 81, and NH 181, facilitating easy access to and from the city.

Affordability

Coimbatore offers a variety of residential options, including plots, apartments, and villas, to suit various budgets and investment preferences. The living expenses are lower, and the average property price ranges from Rs. 50 Lakh to Rs. 77 Lakh.

Rental Yield

With such ongoing improvements in Coimbatore, the rental yield in the locality has spiked. Thus the average rental yield for property investment in Coimbatore is around 4%.

Potential for Growth

Coimbatore has been recognised as one of India's 100 Smart Cities, attracting more infrastructure, technology, and sustainable growth funding. The government's emphasis on boosting sectors such as textiles, IT, and manufacturing enhances Coimbatore's appeal as a prime location for investment.

Demand of the Location

The increasing population and influx of professionals in Coimbatore have created a higher need for housing. Investment in residential property in Coimbatore guarantees a 10–15% increase in marketability in 2024, making Coimbatore an attractive investment.

RERA

The Real Estate (Regulation and Development) Act (RERA) is significant because it promotes improved governance and transparency within the real estate sector. This legislation is crucial for enhancing project efficiency, establishing standards, and ensuring quality.

Builder Credibility

Real estate projects by well-known developers such as Sree Daksha Property Developers, Green Field Housing, Bhuvana Promoters, and Casagrand Builder are expected to increase in value over time due to their strategic choice of prime locations and meticulous project planning.

Steps To Property Investment in Coimbatore

Step 1: Conduct a market survey and finalise your investment budget.

Before searching for a property in Coimbatore, conducting a market survey and determining your investment budget for residential properties is important.

Step 2: Shortlist a few properties based on your requirements.

When selecting properties for investment, take into account the location, potential sale value, and type of property. To evaluate different choices, consult with real estate agents, browse online listings, and participate in property expos.

Step 3: Plan a field visit to the properties to assess daily lifestyle.

Potential buyers should visit properties in person to assess factors such as infrastructure, transportation access, and proximity to hospitals, as these elements significantly influence the decision.

Step 4: Check the background and property documents.

Conduct a comprehensive background check on the property using RERA guidelines to prevent fraud and legal disputes and carefully review all property documents pre-purchase.

Step 5: Prepare all the necessary documents to purchase the property.

The procedure includes gathering all necessary paperwork for buying a property, such as the sale deed and agreement. Collaborate with legal experts to verify these documents and intricacies related to the transaction.

Step 6: Pay for the property, stamp duty and registration charges.

When buying a house, you must cover costs such as stamp duty, registration fees, property ownership transfer, and service fees for real estate agents or consultants.

Benefits of Property Investment in Coimbatore

Medical Facilities

Coimbatore is home to several highly regarded hospitals that provide excellent healthcare services at affordable prices. These include NG Hospital & Research Centre, Sree Abirami Hospital Pvt Ltd, and Kongunad Hospital. Dependable healthcare facilities make Coimbatore an appealing destination for individuals interested in investing in residential property.

Travel and Sightseeing Opportunities

Coimbatore is more than just a city known for its industries; it is also a cultural and spiritual significance centre. The city boasts renowned temples like the Temple of Adiyogi Shiva Statue, Sidhapudur Sree Ayyappa, Eachanari Vinayagar Temple, and Dhyanalinga Temple, making it a diverse and welcoming residence place. Other sightseeing options include Vydehi Falls, Isha Yoga Centre, and Kovai Kondattam.

Growing IT Sector

Coimbatore hosts several research institutes and key employment arenas like Saravanampatti, Kalapatti, and Avinashi Road. Major software firms such as Amazon, HCL, Bosch, Wipro, and CTS have opened offices in Coimbatore, leading to a surge in demand for residential properties and creating a promising investment prospect.

Long-Term Growth

Over time, the Coimbatore real estate market has steadily increased property values. With ongoing infrastructure improvements, residential areas have shown a strong potential for long-term appreciation, such as Avinashi Road (35%), Siganallur (20.2%), and Ramanathapuram (14.6%), over the last 5 years.

Amazing Connectivity

Coimbatore can be easily reached via Trichy Road, which serves as the primary entrance into the city from the Southern and Eastern regions of Tamil Nadu. The city is also well-connected through Coimbatore Junction railway station and Coimbatore International Airport, linking it with different cities and towns across India. However, there are no waterway connections to Coimbatore.

Top Locations for Real Estate Property Investment in Coimbatore

Race Course

Race Course is a wealthy neighbourhood. It's often compared to Switzerland. It is a popular spot for fitness enthusiasts and nature lovers, offering a sanctuary for joggers and walkers who prioritize health and environmental consciousness. Some of the residential areas in the locality include Elysium The Address, Global Bella Casa in Peelamedu, and Casagrand Amber in Kallimadai. The average property price for this area is approximately Rs.13,000 per square foot.

Saibaba Colony

Saibaba Colony is a prestigious residential area in Coimbatore with affluent residents. The region boasts numerous banks, restaurants, and dining options due to its proximity to job centres such as AK Tech Park and Bharati Park. Numerous residential communities like Patteeswara Heritage, RR Yazh, Marutham Bhaghya, and RR Harmony offer exceptional facilities and services. The average property price ranges from Rs. 4,200 to Rs. 29,000 per square foot.

R S Puram

R.S. Puram, located west of Coimbatore, is a prestigious neighbourhood popular among working professionals. It is known for its reputation as a hub for shopping and education within the city. Many housing developments offer exceptional facilities and services, such as Dhiya Brindhavan, Town Elite City, and Sree Dakshas Ivadvi. The average property price ranges from Rs. 6,384 to Rs. 10,469 per square foot.

Peelamedu

Peelamedu, a residential neighbourhood in the eastern part of Coimbatore, is known for its mix of standalone houses and high-rise apartment buildings. Its appeal is enhanced by its proximity to the Coimbatore International Airport and various technology parks, such as Tidel Park and ELCOT SEZ, which cater to the IT industry. Numerous residential communities like Ravi Murugaa Sai Gardenia, Chathamkulam Kadambari, and Globus Arima Legend provide outstanding amenities and services. The average property price ranges from Rs. 4,846 to Rs. 20,230 per square foot.

Avinashi Road

Avinashi Road is near the Civil Aerodrome Post and the BR Puram Industrial Estate in Indira Nagar. This area features upscale residential properties, including apartments, individual houses, and land parcels such as Casagrand Jubiliant, Sattva Navaratna Residency, and Vakaman Kota Gold Fields. Serving as a vital thoroughfare connecting neighbourhoods in both the eastern and western parts of Coimbatore, it also offers convenient access to the city's airport. Property costs vary between Rs. 4,346 and Rs.17,308 per square foot.

Conclusion

What is Property Investment in Coimbatore?

Coimbatore, India's 'Manchester of South India', is developing as a smart city due to economic growth, infrastructure, job opportunities, and IT and ITES sector location.

Factors to Consider Before Property Investment in Coimbatore:

• Economic Growth
• Infrastructure
• Affordability
• Potential for Growth
• Demand of the Location
• RERA
• Builder Credibility

Steps to Property Investment in Coimbatore:

• Conduct a market survey and decide your investment budget.
• Shortlist properties based on your requirements. Visit the properties to assess their infrastructure, transportation facilities, hospital proximity, etc.
• Do a background check and verify all the property documents.
• Prepare the necessary documents, such as the sale deed, agreement, etc.
• Pay for the property, including stamp duty and registration charges.

Benefits of Property Investment in Coimbatore

• It offers medical facilities.
• There are chances to travel and explore different sights.
• It has a growing IT sector
• It shows sustained growth.
• It has amazing connectivity.

Top Locations for Real Estate Property Investment in Coimbatore:

• Race Course
• Saibaba Colony
• R S Puram
• Peelamedu
• Avinashi Road