Why should you own a second home in Coimbatore?

Coimbatore is one of the sought-after cities in South India for real estate investment, especially second homes. The transformation of this tier-2 city from a small industrial town into a preferred real estate investment destination has been influenced by several factors, including the emergence of the IT sector, the growth of the healthcare and educational sectors, and infrastructure projects, including the Coimbatore Metro. The city attracts homebuyers across categories, including IT professionals, families and NRIs. A significant portion of the homebuyers in Coimbatore includes those seeking second homes or retirement homes. With a well-developed social infrastructure, Coimbatore provides the right environment that meets the lifestyle needs of a modern home seeker. Moreover, the availability of advanced healthcare facilities and affordable property rates is why the city attracts families and retirees. In this guide, we explore the major factors that drive Coimbatore’s second homes market.

Coimbatore Housing Market Overview 2025

Coimbatore’s real estate market is currently in a growth phase, with demand seen across both emerging and well-established neighbourhoods. Reputed developers are launching new residential projects to meet the growing housing demand. The city caters to every buyer’s housing needs by offering a diverse range of properties, including apartments, villas, and residential plots. The property market across several cities, especially tier-2 cities, is witnessing growing demand for plotted developments from developers and investors alike. Coimbatore is among the popular cities, namely Hyderabad, Bangalore, Jaipur, and Mysore, that offer ample investment avenues for property buyers. 

Further, the property prices in Coimbatore have been witnessing an upward trend. According to Housing.com, the average property price is Rs 5,879 per square foot (sqft). Given the high demand from from property investors, the city shows a robust growth potential in residential real estate, including niche categories such as senior living and luxury properties, driven by evolving buyer behaviour.

4 reasons why Coimbatore’s second home is growing

#1. Strategic location advantages and connectivity

Coimbatore, in Tamil Nadu, is close to popular tourist destinations such as Ooty, Kodaikanal, and Kerala. This has generated a lot of interest among second-home buyers in the city. Besides, urban centres such as Chennai and Bangalore are also easily accessible from Coimbatore. The city has good connectivity to other cities through road, rail and air. Arterial roads such as Avinashi Road Flyover (GD Naidu Elevated Expressway) and Coimbatore Bypass (L&T Bypass) make the city easily accessible from neighbouring regions. Moreover, new infrastructure developments such as the proposed Eastern Ring Road, the Karur–Coimbatore Expressway, and the Coimbatore Metro. These developments are expected to positively impact the city’s real estate market, driving new residential projects. The city has a strong railway network connecting major cities such as Chennai, Bangalore and Kochi. Further, the Airports Authority of India (AAI) has undertaken the Coimbatore airport expansion project to accommodate the growing number of passengers and ensure comfortable air travel through upgraded facilities. This is expected to boost property investment in areas near the airport, increasing demand for properties.

#2. Well-developed healthcare infrastructure

Coimbatore’s is a sought-after medical hub, driving the medical tourism industry. The city’s healthcare infrastructure includes top-rated super-speciality and multi-speciality hospitals offering affordable, world-class medical facilities. Owing to this, the city attracts a large number of people from across India and other countries. As patients and their families come to the city for treatment and recovery, the second-home market sees steady demand. Moreover, the availability of healthcare infrastructure captures the interest of homebuyers with senior citizen family members. A significant percentage of this homebuyer category includes NRIs and affluent buyers seeking a comfortable retirement away from busy city life. Hence, the city is an ideal market for developers to launch their retirement communities and senior living projects.

#3. Employment and educational opportunities

Coimbatore’s economy is primarily driven by its healthcare sector and by thriving industries such as manufacturing and automotive. Further, the rapidly growing start-up ecosystem and IT industry are attracting many young working professionals to the city. With the influx of new domestic and multinational companies, the job market is set to grow. The demand for housing increases as people continue to move to the city in search of better opportunities. Young home seekers prefer to lead a modern lifestyle with access to various amenities at their doorstep. This has generated a significant demand for gated communities in Coimbatore. Many people, primarily residents of another city, consider making Coimbatore their second home, boosting real estate development.

#4. Affordability and high ROI 

Real estate investment in tier-2 cities is much more affordable than in tier-1 cities. Due to economic growth and other factors, real estate prices continue to rise not just in metropolitan cities but also in tier-2 cities. In Coimbatore, property rates have nearly doubled in several localities in recent years. Despite this increase, property rates remain affordable compared to top cities in South India, such as Chennai and Bangalore. Singanallur (Rs 5,036 per sq ft), Villankurichi (Rs 7,494) and Peelamedu (Rs 11,200) are thriving localities in Coimbatore that have seen YOY price appreciation of 9% to 28%. 

With infrastructure upgrades and overall growth of the city, property investment is expected to bring profitable returns for the buyer. For those investing in a property for rental income, the city offers a steady demand from renters. Coimbatore is also known for its prestigious educational institutions, including medical colleges, engineering colleges and business schools, which draws student population to the city. Moreover, demand also comes from people who come to the city to avail of healthcare. The city sees significant demand for rental properties year-round.

Top locations in Coimbatore for buying a second home

Housing.com News Viewpoint

Buying a second home in Coimbatore can be considered a smart investment decision and a lifestyle upgrade for many. Some of the unique selling points of the city are its strategic location, high liveability index, excellent returns on investment, and future growth potential. Coimbatore has several affordable localities for property investment. There are also some high-end neighbourhoods with availability of properties in the premium segment. Before investing in a second home, prospective homebuyers must assess their needs – whether for investment and rental purposes or for end-user use. This will help them make an informed decision on location, property type, and other key aspects. 

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