Coimbatore an emerging realty destination: JLLM
International real estate consultancy Jones Lang LaSalle Meghraj (JLLM) has identified Coimbatore as an emerging real estate destination. JLLM’s recent white paper in this context traces the evolution of this city’s real estate market, identifies its numerous market drivers and showcases its indisputable prospects as the perfect South Indian real estate investment destination of the future. “It is time to sit up and take notice of Coimbatore’s status as a highly promising alternative IT/ITES and biotech destination. This Tier III city has everything it takes, including telecom, power, a highly skilled work force, a rapid pace of infrastructure development and a pro-active Government that is aggressively promoting the city.”,” said Ramesh Nair, MD, Chennai, Hyderabad, Jones Lang LaSalle Meghraj.
“Our findings in this study indicate that Coimbatore will emerge as a favoured destination for real estate investment in the long run,” remarks Abhishek Kiran Gupta, head–research, Jones Lang LaSalle Meghraj. “There is a huge potential for local, national as well international developers in the real estate sector in Coimbatore. As a result, we are of the opinion that there is no better time than now for developers, investors and occupiers to strategize and collaborate to reap the long-term benefits of right investments in the right place,” he adds
Some interesting points from the white paper:
• Coimbatore is the second largest and fastest developing city in Tamil Nadu after Chennai with a corporation area of 105.6 sq km and a population of 1.1 million as of 2008 according to the census findings.
• The city is strategically located between Chennai, Bangalore and Kochi and is well connected by rail, road and air.
• With three universities, five other deemed universities, 25 engineering colleges, 14 polytechnics, more than 65 arts and science colleges, 44 MBA institutions, medical, nursing, law and other colleges, the city boasts of an excellent talent pool that drives the growth of diversified industry verticals.
• Apart from Technology Up gradation Fund Scheme for textile industry, Tamil Nadu government has come up with lucrative incentives for IT and BPO sectors that has evinced increased interest among local as well as national developers to set up IT parks and IT SEZs.
• With 1.57 million sq ft of office space as of end-2008, the Coimbatore commercial office market is likely to quadruple in the next 3-4 years.
• Hospitality sector in Coimbatore is dynamic due to the business climate prevailing. The rapid IT development and the growth in the textile and automobile industry, will drive the business demand in the years to come.
• Entry of IT majors like Tata Consultancy Services, Cognizant, Spheris, Perot Systems and Bosch etc., have resulted in increased occupancy rates in hotels.