Neighbouring areas around Chennai like Coimbatore, Trichy and Madurai are gradually gaining momentum in the real estate space. Factors driving growth here are the peaceful and pollution-free environment coupled with affordable residential values that these Tier II cities offer. In recent times, Trichy has gained popularity as a realty destination for middle income buyers who want to invest in a calm and quiet place.
Market sources revealed that the employees of Bharath Heavy Electricals Ltd (BHEL) and the people working at the reputed educational institutes like National Institute of Technology (NIT), Bharathidasan Institute of Management (BIM) and Sastra University, Indian Institute of Management (IIM) are increasingly investing in Trichy’s residential space.
Noor Mohamed, Proprietor, Bharat Construction said that although this market has been seeing good demand in the past 1 year, but the ‘current’ position is dull. “The main incentives for Chennai buyers are the low budget 2BHK flats available here in the range of Rs 25 to 35 lakh. As for the rental market, demand has been maximum for 3BHK apartments with rental values between Rs 15,000 to 20,000 per month,” Mohamed added.
When speaking about the portfolio of buyers, Mohamed said that BHEL employees, bank officials and local businessmen are investing here apart from Chennai-based businessmen with a long-term investment viewpoint.
Mohd Rila of Crescent Residency said that people are getting attracted to this location, primarily because of ‘good quality’ in townships and gated communities that have come up in the last few months.
Rila said that due to developers launching projects here, market values of land have also seen a rise in recent past. Residential plots are the most active category in Trichy. MagicBricks.com statistics show that over 50% of the listings are in the plots category. Of the rest, builder floors and multi-storey apartments are seeing maximum supply. According to MagicBricks.com, of the total listings on the real estate portal, 56% properties are residential plots, 19% are builder floors, 12% are multi-storey apartments, 8% are residential houses and 5% are villas.
Usha Kumar, Managing Director (MD), Visranthi Builders said that residential values in Trichy have been rising for the past few months as more investment is being made from locals as well as Chennai residents. “In the past six months, capital values have increased by 20% in Trichy,” Kumar added.
The maximum demand has been in the Rs 30 to 35 lakh budget in localities like Thillai Nagar, Annamalai Nagar and Vayalur Road, Kumar said. Education and industries are the primary sectors because of which demand is taking place. “The growth of industries like BHEL, GK Industrial Park is propelling developers to set up projects and buyers to invest in these projects. Trichy could also evolve as an IT destination if MNCs in Chennai set up branches in and around this area,” Kumar added.
RP Builders & Property Developers Ltd, Sebco Property Developers, JK Promoters, Rohini Housing, Vignesh Flat Promoter, Manghalam Estates, Ganesh Builders are the established players in Trichy. Other groups entering this market are Pelican Gorup and RP Builders & Property Developers Ltd.
Road infrastructure too is witnessing a breakthrough with Reliance Infrastructure having completed two key road projects in Trichy. One is the Trichy – Karur Road, covering a length of 80 kms. The project is operational since October 2011 and the estimated cost of the project is Rs 7.3 billion. Secondly, Trichy – Dindigul Road covers a length of 88 kms and has been operational since September 2011.
Trichy is also a famous tourist destination with places such as Jambukeswara temple, Srirangam, Rockfort temple, among others. Apart from having a strong education and industrial base, Trichy also has many healthcare companies like Vasan Health Care, Kaveri Medical Hospital (KMC), Cethar Vessels, and Visranthi Mental Healthcare, among others.
Neha Kashyap, MagicBricks.com Bureau
Source: http://content.magicbricks.com/trichy-gains-popularity-as-a-realty-destination
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