Coimbatore: With land and labour cost shooting up, property prices in Coimbatore have risen considerably. This has slowed the growth of the real estate industry in Coimbatore. Coimbatore seems to be exhibiting a similar trend like that of other Metropolitan cities, in the real estate sector.
Though the property prices have been soaring, the infrastructure facilities still need improvement. The city has been completely occupied by countless residential and commercial constructions, leaving no space for new projects. All upcoming projects are at the outskirts of the city.
Unfortunately the property prices are up even in the outskirts. The developers are left with no choice but to pass on the financial burden to the investors. The middle income groups have to bear the brunt of such property price hikes.
Cement price, steel costs have increased four folds thereby increasing the property prices to a major extent. To keep a check over the costs and improve sales is becoming difficult for the developers. Investors preferring low budget homes in Coimbatore are backing out on their plans to buy a property which has become an issue of concern as far as real estate investment in Coimbatore is concerned.
Areas like Ramnagar, Vilankurichi, Vadavalli have been under the trend of rising property prices. Despite of concessions on property loans given by the bank, investors are still giving it a second thought.
Coimbatore will see a huge demand in the real estate sector in the years to come provided the quality of infrastructure is as high as its soaring property prices.