Coimbatore, the second-largest city in Tamil Nadu, has firmly established itself as a major centre for manufacturing, education, and healthcare. Known for its thriving textile industry, Coimbatore hosts a vast array of micro, small, and medium enterprises (MSMEs) alongside large-scale manufacturing units, making it a significant hub for textile production. The city’s economic landscape is further diversified by a rapidly expanding service sector. With the ELCOT Special Economic Zone accommodating major multinational corporations such as Wipro and Tidel Park, the city’s role as a crucial player in the services industry has been heightened.
Major Factors Driving Growth
The robust services and manufacturing sectors in Coimbatore not only drive the local economy but also attract a substantial number of skilled technical professionals from surrounding regions. This influx of talent and the city’s dynamic economic environment have been pivotal in Coimbatore’s consistent growth. Besides, in recent years, the city has experienced remarkable advancements in both physical and social infrastructure, enhancing its economic activities and leading the city to be ranked seventh on the Ease of Living Index in 2022.
Coimbatore has also made notable progress in the healthcare sector, emerging as a key destination for international medical tourism in India.
The city’s reputation in healthcare is bolstered by the availability of high-quality medical services, well-developed infrastructure, and excellent connectivity through its airport. These factors have also contributed to Coimbatore becoming a preferred location for senior living with the city housing the second-highest number of senior living projects in India, most of these projects being concentrated in the eastern and southern parts of the city.
Customer Profile: Who is Buying a Home in Coimbatore?
Currently, Coimbatore’s real estate market is driven by a diverse group of buyers, including local residents, non-resident Indians (NRIs) looking for senior living options or second homes, and individuals attracted by the city’s developing economic environment.
Trends in the residential market indicate a rising preference for 2 BHK and 3 BHK villas and apartments, with land plots also being highly sought after. A significant trend among end-users is the high value placed on amenities and facilities, which heavily influence their home-buying choices. This emphasis is not limited to end-users alone; NRIs and investors are also increasingly evincing interest in villas and luxury apartments, drawn by the exclusive amenities these properties offer.
Emerging Residential Hotspots
The strategic positioning of Coimbatore’s commercial hub on the eastern side of the city, near the international airport, has significantly boosted its status as a key micro-market in the region. The airport’s proximity, enhancing connectivity, makes it a prime location for businesses and fosters a thriving commercial environment. This commercial growth has a cascading effect on the residential real estate sector.
The eastern and northern parts of Coimbatore, particularly localities like Saravanampatty, Peelamedu, Kalapatti, and Thudiyalur, have seen a surge in residential activity. These areas are highly sought after due to their location advantage and the amenities they offer, making them ideal for professionals seeking residences near their workplaces, leading to average capital prices of INR 5,000/sqft to INR 9,500/sqft, and a substantial price appreciation of 20–25 percent in these areas.
Emerging areas like Ganapathy and Sai Baba Colony in the north, and Singanallur and Vilankurichi in the east, are also catching up. With average capital prices ranging from INR 4,500/sqft to INR 7,500/sqft, these areas are becoming attractive alternatives for homebuyers and investors looking for more affordable options without compromising on connectivity and amenities. These regions offer potential for further development and price appreciation, reflecting Coimbatore's expanding urban landscape and its capacity to accommodate growth.
Outlook
The outlook for Coimbatore suggests sustained growth in its eastern and northern sectors, driven by available land and proximity to key commercial hubs and the airport. Strong interest from NRIs and international individuals is expected to persist, bolstered by international air passenger traffic growing three times faster than domestic flights. Additionally, Coimbatore is set to maintain its dominance in the senior living market, with prominent developers partnering with healthcare operators, appealing to retirees seeking favourable living conditions.
