Tag Archives: Coimbatore city

Time to expand business districts of Coimbatore

Posted on by Track2Realty
Track2Realty Exclusive

Bottom Line: With CBDs (Central Business Districts) of Coimbatore getting saturated, it is time to create more SBDs (Secondary Business Districts) and PBDs (Peripheral Business Districts. 

Coimbatore city, Coimbatore lifestyle, Coimbatore real estate, Coimbatore property market, Malls in Coimbatore, Multiplexes in Coimbatore, Coimbatore nightlife, India real estate news, Indian property market, NRI investment in Coimbatore, Track2Media Research, Track2RealtyThe state of any given real estate market in general and its commercial market vibrancy in particular is often evaluated on the desired index of its Central Business Districts (CBDs). The CBDs along with the Secondary Business Districts (SBDs) are indicative of the real estate growth prospects in any feasibility study of the developers’ before the launch of a new project in the city.

In recent times, the cities that have attracted sizeable investments due to hectic economic activities in and around the CBDs and SBDs have rather managed to take the concept of the business districts to the next level of Peripheral Business Districts (PBDs). Times Property takes a look at the Coimbatore city to understand the dynamics of business districts and the growth prospects ahead.

The emergence of the concept of business districts in the city has been more by default than by design. The advent of the big corporate houses and the emergence of the city on the wish list of the young professionals led to the occupancy level in some pockets be defined as the business districts. 

And hence, to say that Coimbatore needs more CBDs and SBDs, if not PBDs as of now, to shape up as the corporate city would be stating the obvious.

For long even as the city property market has grown by leaps and bounds the concept of business districts has not been as prominent in the city property market as in most of other urban centres that have been witness to phenomenal urbanisation and real estate growth along with economic opportunities.

After all, the city itself for long was not referred as the business destination in the collective consciousness. It was more referred as the pensioners’ delight and due to its climatic conditions it attracted the retired people from across the South India. However, slowly the city gained ground as a corporate city and started attracting young professionals as well.

In terms of the city’s business districts, traditionally Coimbatore’s business destinations have been Avinashi Road, Gandhipuram and RS Puram and it seems even though the growth pattern of the city has been in a dynamic mode the business districts could not grow beyond these established locations. 

The developers’ focus has also been more to cater to the growing demand of housing. This is despite the fact that everyone within the built environment maintains that Coimbatore needs more CBDs and SBDs to shape up as the corporate city. To make the growth pattern of the city holistic and sustainable, it is time for Coimbatore to create more business districts.

Analysts find various socio-economic reasons ingrained in the city living why Coimbatore has thus far shied away from creating multiple business districts. Of course, the reluctance on the part of the government and absence of policies that could encourage the developers are also being cited as reasons. However, everyone feels it is time to relook at the rise and growth of business districts in the city that could be a magnet for investment, growth and more economic opportunities in the city.

Admitting that Coimbatore business districts thus far have been traditional pockets of business centres only, Smitha Parasuraman, General Manager – Residential Services with Colliers International says Coimbatore  definitely requires to look at expanding its CBD options to tap the extensive potential that the city has to offer to investors and developments. Currently, there is limited land available for development in CBD. The SBD and PBD can emerge as the new growth corridors and if planned well could be the newer CBDs of the city.

“Coimbatore’s business destinations could not grow beyond Avinashi Road, Gandhipuram and RS Puram because till three to four years ago people in the city being conservative by nature were not willing to travel beyond established CBDs. However, the shift in the next generation has been encouraging people to travel beyond these locations and developments have started coming up in locations like Sathy Road, L&T Bypass Road and Pollachi Road.  Earlier, these were only ideal choice for industries,” says Parasuraman.

Defending Coimbatore’s real estate for being a slow mover towards creating more business districts T Chitty Babu, Chairman & CEO, Akshaya Homes rather feels that the concept of CBDs and SBDs culture itself is new to India. He maintains that most of the Indian cities have grown organically and by default than by design (except Chandigarh). This is the case of not just Coimbatore, but also all the Indian cities.

“Any city needs a proper plan in creating the right clusters – business, leisure, entertainment, shopping, to form a designated area like a CBD to emerge. I agree that it is the time to look at planned CBDs. Areas like Avinashi Road and RS Puram are known for its traditional textile mills. They flourish because of trading and textile mills and with related business vicinity. As textile mills are no more active in Coimbatore it is time to come up with set of new businesses. This will transform the city by creating a new business area and that will trigger more development,” says Babu.

Analysts point out the fact that the city-based developers alone should not be blamed for not creating very many business districts. The developers in the city have mostly followed the cyclic pattern of demand and supply. They rather lament that to a large extent absence of land releasing is responsible for the near no growth of new CBDs in the city. There is no large land parcel available for growth as  the old corporate groups are neither willing to develop further nor parting with their land for development which is restricting the further growth of the city. 

The government authorities have also not come up with any plan to create more business districts in and around the city. Analysts point out that for any CBD to be planned, good size of land is required. Even though Coimbatore is an ideal place for developing such business centres, the progress has not been there leading to the traditional business pockets getting over-occupied and hence rentals going northwards.

This also prohibits the rise and growth of Small and Medium Enterprises (SMEs) in the city. It is hence suggested that all the stakeholders – real estate, business bodies & government – should collectively work towards creating more business districts through a consensus and joint action.

Keeping in mind the growth pattern of the city the authorities should also be flexible to release land parcels with incentives for the new business districts. Land release should be made an encouraging proposition for the developers; it has always been a complicated process thus far.

Coimbatore has all the necessary traction points to emerge as one of the key corporate city and contribute significantly to the Indian economy. The real estate developments thus far suggest that the both the developers’ willingness and the investment appetite is there in the city but the lack of quality business destinations have been a deterrent.

Coimbatore emerging as a lifestyle city

Posted on by Track2Realty
Track2Realty Exclusive

Bottom Line: Coimbatore is no longer a property market for retired and budget conscious buyers; the lifestyle has gained ground in the city.

Coimbatore city, Coimbatore lifestyle, Coimbatore real estate, Coimbatore property market, Malls in Coimbatore, Multiplexes in Coimbatore, Coimbatore nightlife, India real estate news, Indian property market, NRI investment in Coimbatore, Track2Media Research, Track2Realty“Coimbatore is turning out to be a lifestyle city? You must be joking. Right?” Well, you will also have the same reaction if you are not keeping a close track of the developments in this part of the world. Contrary to the general perception that Coimbatore is a cost conscious city where realism is reflective at every level and per capita expenditure not very high; the city is slowly but surely emerging in an altogether different direction.

Coimbatore has today all the pre-requisite fundamentals of a lifestyle city that is high on the wish list of the corporate sector and the young professionals. The best part is that this development has happened in the last few years when the market conditions otherwise have been bearish; something that suggests the wave of change is here to stay.

Hence, it is important to understand that Coimbatore is no longer a city that can easily be defined by the given parameters of a tier II city. It is rather a hip and happening city where the multiple demand drivers are working in tandem to make sure it gives a tough competition to other metro cities of the country, most notably Bangalore and Hyderabad in the southern part of the country.

Developers active in the city are so confident with this growth of the market that they even suggest that Coimbatore has the potential to emerge as the best South Indian city and one of the best property markets across the country. An outside view may suggest otherwise, as the city still is an end user driven market and the demand drivers are need based and not speculative elements or investor groups.

However, a closer look at the upcoming projects across the major micro markets of the city suggests that the developers have already realised the change of mindset of the new age buyers. It is reflective in terms of the offerings also and affordable luxury as a concept that is a misnomer in other parts of the country is increasingly gaining ground in the city.

The residential offerings that always maintained the price band of below Rs. 5000 per sq feet has now breached that psychological barrier in the last over a couple of years. Coimbatore has been one property market which has been least affected by the overall economic slowdown. It has rather accelerated the pace of developments and the city clearly shows a tectonic shift in the market and reflects the buyers’ preferences for lifestyle driven apartments.

Analysts point out to the fact that Coimbatore is no longer just a retirement destination or the last choice of those buyers who could not afford the relatively costly markets of South India, like Chennai or Bangalore. As a matter of fact, the city has rather shaped up different than what it was actually thought of in the early stages of evolution of property market over here.

In order to understand the economy of the city in general and its property market in particular one has to find answer of certain pointed questions about the city. What has changed this thought process? Has the city’s economy reached its optimum level of boom? Whether there are more commercial activities in the city? Have big brands found a natural destination in Coimbatore the way they found cities like Gurgaon or Pune in the early stages of evolution?

The answer to most of these questions is behind the success of Coimbatore as an emerging lifestyle city. Most importantly, most of these answers are in affirmative, even though it may be just the first flush of aspiration for the city. The young expat professionals in Coimbatore coming from across the country have nevertheless changed the lifestyle choices and preferences in this rather conservative city.

Today, because of this working class expats Coimbatore no longer bears the look of a tier II city that has its economy dependant on the local small scale business. It is blossoming into a corporate city though the scale and volume has not reached to the peak level, compared to other big metro cities.

Ravindran P, a local property agent agrees that lifestyle choices are changing the city fast. He terms Coimbatore city as one of the new lifestyle cities which is growing at a fast pace. There has been a sea change in the kind of life people are living there. One of the recent trends which have risen exponentially is gymming.

“With numerous individuals looking to lead a healthy life, they have turned their attention to living a health life which has given rise to loads of new gymming enthusiasts. Secondly, various other activities like extracurricular activities and hobby perusal are also some of the new trends seen to be rising in Coimbatore. All these aspiration driven living are having their effect on the demand in the real estate market as well,” says Ravindran.

A spokesperson of CRISIL Real Estate Ratings finds a reason behind this growth of Coimbatore as the new lifestyle city. According to him, Coimbatore property market is tilting towards lifestyle options because the young professionals are opting for those.

“In recent times demand in the Coimbatore housing market has been triggered by the growth of the IT/ITeS and manufacturing industries in the city. Employees working in these companies, including migrants, are creating this demand, which is also paving the way for a lot of townships. Hence there are a number of townships under construction in the city. These young working professionals have fueled the consumption cycle of the city’s economy, which has had a corresponding effect in the growth of the property market, including retail outlets, malls and office spaces,” says the spokesperson.

The trend of lifestyle and aspiration driven developments are not confined to residential segment only. It is rather very much visible in the commercial properties as well. The growth of the business of the city beyond just Small and Medium Enterprises (SMEs) has ensured that quality office spaces are being developed and the mushrooming IT/ITeS sector has made sure that there are occupiers for these spaces as well.

The rental growth may not have been phenomenal but at least the spaces are being occupied at a time when the economy has been slow moving and commercial property has been worst hit in some other cities that are better positioned on the corporate aspiration level.

The brands across the segment are also nowadays flocking to the city; thus making sure that the growth of the retail space is steady, if not phenomenal. The young aspirational working class has made sure that these brands are not out of the business in the city. On a macro level it has made sure that the growth is heterogeneous and it is across the developments, including hospitality.

It is not just about the branded hotel chains but today there are entertainment and lifestyle options increasingly spreading in the city. Multiplex culture is also witness to a decent business. Coimbatore is increasingly scaling up on the index of aspiration level and lifestyle choices.

So, Coimbatore is no more a non-descript city on the real estate landscape that has only the occupiers driven by affordability. Nor is it a city which can just be termed as the tier II city waiting for its moment of growth.

The catalysts of the growth are already there and it is quite obvious that if the city could maintain its upscale momentum in a bearish market, Coimbatore can emerge as one of the key lifestyle markets once the overall economic sentiments are bullish. Coimbatore has indeed arrived with a bang on lifestyle and aspiration that is fuelling the corporate culture in the city.