You would have heard of a large number of prospective buyers, especially tradesmen who have established a considerable market in Chennai moving into the city. You would have also heard of Chennai city being home to many migrant techies from other parts of India and abroad. Can this success story be replicated in Coimbatore? Let’s find out.
Not only have new start ups set their base in Coimbatore but be ready to hear of business analytics set to emerge as the new IT in the city giving employment to many and in turn calling in many of the techies from elsewhere. “There are companies that are eying Coimbatore for their expansion plans. Among the existing big names are the Tidel Park, Hitech Infrastructure and Rathinam Technopark that house several companies and are a source of increasing housing demand,” says Vikram Ratnam of Prime Realty.
As per sources, these companies are eying special economic zones for an investment but the larger question is how these may contribute to the number of jobs and thereby retain a larger number of willing candidates to stay back in the city. “Till now Coimbatore was known only for its textile industry. A sizeable chunk of young population consisting of fresh graduates looking out for IT jobs and the inclusion of IT can be a major attraction for settlers,” says Ashish Kanth of Yogya Prop.
It is interesting to note that despite the stagnancy in the market, Coimbatore market seems to be picking up. “Buyers are not making big purchases but there are transactions with respect to plots especially in the peripheries. Sulur, Perianaikenpalayam, Singanallur, Peelamedu, Madukkarai and Negamam have seen some registrations although this is in no case a boom because the number of investors, both NRIs and locals was far more five years back,” says Ratnam.
“Areas that command higher prices such as Gandhipuram did not have many takers making it quite certain that actual buyers are looking for practically priced properties and believe that with the expansion of jobs and businesses, the peripheral areas have the potential to tap buyer interest,” concludes Kanth.
Trend watchers point out that buyers need to be aware of the increasing number of fraudulent real estate incidents happening in the market. Aggregators have been luring mid-income buyers with cheap, discounted but unapproved layouts. Consequently, a proportion of buyers were taken aback when they understood that these layouts were distanced from any kind of conveniences- social or physical infrastructure and civic amenities. These areas would either be hill or forest areas. Official sources have issued a warning and said that if they give in to advertisements without research, they might be losing out on their life’s savings.
Consumer activists have come out with a three point guide-
- If the plot is being sold at a rate lower by 25% or more than the area’s ongoing rate, it is time to verify
- Acquire an encumbrance certificate from the land registrar’s office, which takes one to five days and check in the same office if the land has got DTCP approval
- Buyers should also go to the DTCP or LPA office and again cross check if the land is approved
With an increasing number of jobs, realty becomes a desirable investment. Be careful before you make an investment.
Source: Times of India / Sneha Sharon is a part of the Magicbricks- Content & Research team and is a market research enthusiast.