Property sector in Coimbatore sees revival of demand 

COIMBATORE Though raw material costs have shot up for the construction sector, demand has revived an

Though raw material costs have shot up for the construction sector, demand has revived and is high in most of the property segments in Coimbatore.

According to sources in JLL, the demand and supply of space is high for warehouses. In the office space, the supply for higher area such as 10,000 sq.ft is relatively low, compared to demand. On the retail side, the supply is expected to pick up gradually. With more number of people moving into Coimbatore, the demand for housing has picked up.

Gugan Ilango, president of Confederation of Real Estate Developers’ Associations of India, Coimbatore, said the property segment demand at present is similar to what was seen in 2009 or so. The buyers are all end users. The demand is more in projects that are in progress and will be completed in a year. Many people who were living in nearby towns and have moved abroad want to buy a house for their parents or family members in Coimbatore city. The migration of people to Coimbatore has also increased in the last one year. Inventory available with the promoters is not high at present.

Another new trend is people from places such as Andhra Pradesh investing in a second home between Coimbatore and Udhagamandalam. They are looking at properties close to Coimbatore but in the Nilgiris, he said. The demand is expected to remain high in the coming days too, he added.

However, high raw material prices have hit some of the property segments.

Paneerselvam, chairman of BAI, Coimbatore, said cost of all the raw materials - from steel and cement to pipes and paints and labour charges - have gone up manifold. The basic construction cost works out to almost ₹ 2,600 per sq.ft now. Those who are building smaller independent houses are delaying the projects and those who have taken government orders are facing uncertainties.

General secretary of Tamil Nadu AITUC Construction Workers’ Union N. Selvaraj says the raw material prices are very high. Contractors, who take up smaller projects and those who do labour contract are the worst hit. There are many building owners who get the raw material and engage workers directly to do smaller works. Such construction activities are affected, he said.