Demand for rental spaces increases in Coimbatore 

COIMBATORE Demand for commercial spaces for rent has shot up in Coimbatore city in the recent months

Demand for commercial spaces for rent has shot up in Coimbatore city in the recent months, pushing up the rental rates too.

C.R. Shivakumar, president elect of National Association of Realtors India, said demand for office and retail space was high here, mainly on Avinashi Road and there was hardly any availability. The demand for retail space was from national brands of lifestyle and food products such as footwear and tea. “Absorption of office space is high on Avinashi Road,” he said.

In the case of retail space, the demand goes beyond Neelambur on Avinashi Road, near Annur, and towards Pollachi. “Currently, the Coimbatore rental market is in a good phase,” he added.

According to a leading property consultant here, there is almost no availability of 10,000 sq.ft plus area for offices and retailers in Coimbatore. For smaller spaces also, the demand is good but, again, availability is a challenge. The rental rates have gone up for these two segments and is likely to go up further. “There is a huge revival after COVID-19 for commercial and retail spaces,” the consultant said.

Delay in getting approvals and the slowdown in economy during COVID-19 brought down launch of new projects. Hence, availability of quality space was limited now, the consultant added.

Regarding residential rental space, Mr. Shivakumar said the demand was limited to certain pockets in the city and these areas had seen a hike in rental rates. But, it was not spread across the city.

The consultant added that the demand for rental houses was higher in school zones. In other areas, the growth was flat. However, there were indications that the city’s population was growing and the demand might pick up again in the coming months.