IT to boost Coimbatore realty

The real estate demand in Coimbatore, Tamil Nadu for much the same reasons as in other parts of the country- hardening home loan rates, increased cost of land and construction.

The state-government initiative to promote IT park and the private IT SEZs is expected to generate employment and hence boost demand for realty.

Reportedly, Mysore a prominent IT company was able to purchase land at about Rs. 10 lakh per acre, but in Coimbatore the price is around Rs. 50 lakh to Rs. 1.5 crore per acre within a 10-km radius. This steep price is set to have discouraged potential IT investors in the city.

Earlier, the cost of the land would constitute about 30 per cent of any project, but currently, it accounts for nearly 50 per cent of the cost within the city and about 30 per cent in the outskirts.

Also, the developers and builders seem to be unable to offer budget flats in the Rs. 20 lakh-Rs. 30 lakh price range within the corporation limits. The demand is extremely low for such flats outside the city limits.

Currently, 5,000 flats are under-construction and another 5,000 in the planning stage. As said earlier, the realty demand can be boosted only with the growth of IT in this area.