The future of real estate in Coimbatore is pinned to the by-pass

The Manchester of South India, Coimbatore, is writing its tale of success as the fastest-growing economy in the world owing to its massive manufacturing sector. The city is home to over 30,000 small, medium, and large industries - from textile and jewellery mills to poultry and software industries.

Coimbatore is growing as a significant nexus for well-established and sustainable residential and commercial real estate, thanks to an increased need for commercial activities, the Smart City programme and industrial demand. The housing market has seen a significant increase in demand, especially in the Coimbatore By-pass and the need for second homes and retirement communities is unrelenting.

The bustles of development in Coimbatore’s By-pass doesn't compromise the quality of living, as it remains one of India's most pollution-free cities. With its best in class civic facilities, coherent mobility, intelligent transport system and a breath of fresh air through a constant increase in the city's green cover, Coimbatore is quite deservingly one of the 20 smart cities in India.

Coimbatore: A Smart City

Out of the 20 cities that competed in the Smart Cities Challenge, Coimbatore was one of the cities chosen in the first round . The expected outcome holds the potential to be a sequel to OMR's growth or one that beats it. It has set the tone to be a mirror to India's growth.

A Smart City's core infrastructure elements would include adequate water supply, reliable electricity, sanitation, efficient urban mobility and public transportation, affordable housing, robust IT connectivity and digitalization, good governance, sustainable environment, safety and security of citizens, and health and education.

Creating walkable communities reduces traffic, pollution, and resource depletion while boosting the local economy, encouraging relationships, and ensuring security. Not just for vehicles and public transportation, but also for pedestrians and cyclists, the road network is built or restored, and necessary administrative services are available within walking or cycling distance.

Coimbatore: The next real estate hub

According to a recent JLL report on Emerging Hotspots in India, Coimbatore has been classified as one of the top 10 locations that offer low-budget real estate investment prospects. The city is expected to attract new investments into its real estate industry in the near future due to the following characteristics:

Vellalore Integrated Bus Stand

The corporation of Coimbatore is setting up an integrated bus stand to complement the rampant development in the city. With a budget of RS. 168 crores, the 60-acre Integrated bus stand will accommodate as many as 140 buses, 112 parking stations and 18 roadways from the parking area.

The primary purpose behind this initiative is to reduce traffic congestion on Pollachi Road, Palladam Road, Mettupalayam Road and Sathy Road. This will also induce a better flow of traffic towards Coimbatore’s By-pass. As of January 2022, the Vellalore integrated bus stand is 60% on its way to stop traffic jams and contribute towards the city's growth. This will become the main bus stand for all mofussil and town buses.

This new, extraordinary bus stand will have a lot more than just bus halts. The 60 acres long bus stand will include parking facilities for over 104 cars and 1,200 two-wheelers. The plan includes the construction of retiring rooms and restrooms for the comfort of bus drivers and conductors. Additionally, the facility will include an information centre, a first aid centre, a police booth, a commercial complex, a restaurant and billboards.

Expansion of Coimbatore International Airport

Another crucial leg to Coimbatore's Smart City Plan is its evolving airport. What had started back in 2010 still receives complete support from the government—a total of Rs. 1,132 crores are allotted for the airport expansion plan.

As of October 2021, 7 new aprons will be added to the airport, making it 18. The addition of aprons will accommodate base flights that make night halts at the airport and leave for their destinations in the early hours. New aprons may encourage airlines to operate more base flights and take advantage of the State Government's VAT exemption on aviation turbine fuel for flights between 11 p.m. and 7 a.m. The new expansion plan also includes a runway of 12,000 feet of 627 acres.

Widening of Coimbatore's By-pass

Growth has kickstarted in Coimbatore By-pass, widening to transform into an 8-lane road from 4 lanes. All set to become the nearing future of real estate in Coimbatore, the By-pass is expected to attract Rs. 12 lakh/cent, displaying a high potential for real estate investors.

The Coimbatore By-pass lies only 10 minutes away from Singanallur and the railway station and 20 minutes away from the airport and more areas like Ukkadam, Peelamedu, and Avinishi road.

Defence Industrial Park

The state government of Tamil Nadu is eager to take the union government's defence industrial corridor a step forward and establish a defence industrial park of over 500 acres, costing up to Rs. 225 crores. With five nodes in Chennai, Tiruchirappalli, Coimbatore, Salem, and Hosur, Tamil Nadu will host one of the two proposed defence industrial corridors. This corridor is projected to result in the development of new defence manufacturing facilities and clusters and the requisite testing and certification facilities and export facilitation centres.

While the detailed project remains under preparation, we stand confident that this project will drive success to Coimbatore. Once this park turns to reality, it can attract investments of over Rs. 3,500 crores. Giant industries like Reliance, Tata, and L&T will establish their bases in the region for manufacturing defence equipment.

A Facelift to Real Estate Demand

India's long-term goal of becoming self-sufficient in the defence and aerospace industry could benefit area real estate. A swarm of auxiliary companies will follow large-ticket investments in defence and aerospace, strengthening the regional ecosystem.

This will aid in the growing demand for industrial lands, offices, commercial spaces, and warehouses in the area. Similarly, residential demand will also rise as commercial activity rises, particularly in production clusters. Major developers will pivot to these areas and undertake new launches and township projects to meet the changing demand.

Future of real estate: Coimbatore By-pass

Coimbatore By-pass, the city's main thoroughfare that connects it to the railway station and the airport, is undergoing commercial and residential development.

The fast-track development in the By-pass has caught the attention of real estate developers and investors. The growth in Coimbatore has been propelled by the increase in real estate opportunities along with infrastructure development. Since 2018, the real estate market of Coimbatore has seen an increase of over 45%.

The land value in Coimbatore’s By-pass has increased by 80%, and the sales conversion rate rose to 100% from 60% after the announcement of the bus terminal proposal. There will be a continuous demand for residential property across the city due to the city's robust real estate market. With the expansion of infrastructure and connectivity across the city, demand will grow even more, particularly around the Coimbatore By-pass, thanks to low pricing and various options to pick from.

Coimbatore is calling - It has developed into a strong and expanding real estate economy. This tier-II city has a distinct economy, high-quality education, a large labour pool, and well-defined sustainable development goals, making it a desirable site in South India with high expectations for future investments. The city's real estate market will boom in the future, thanks to the emergence of optimistic attitudes and the city's business-friendly atmosphere.

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