Guide for Coimbatore Residential Real Estate Investment

Coimbatore, sometimes shortened as Kovai, is a major metropolitan city in Tamil Nadu. It is the 16^th largest urban agglomeration in India, as per data from the 2011 Census. Referred to as Manchester of South India, it was ranked 7^th best city in India in  the Ease of Living index in 2020. In addition, Coimbatore is selected as one of the 100 Indian cities to participate in the flagship initiative’s development of Smart Cities.

This city is in the top 10 best cities in India almost every year. So let’s understand how investing in residential real estate in Coimbatore might be profitable for you.

Top Reasons to Invest in Coimbatore Real Estate

Here are some reasons why you should invest in residential real estate in Coimbatore:

Excellent Job and Business Opportunities

Coimbatore offers all the modern facilities that a person requires to be happy. In addition, the development of the automobile manufacturing and IT sector has increased job opportunities in Coimbatore. Besides this, the city offers great connectivity, public transport and other social facilities that enhance its residential real estate sector. 

Safety

When you think of moving to a city, safety and security are essential factors.   The robust code of Coimbatore’s police force, along with their vigilance, has transformed this place into one worth living, moving and working in. But, apart from these, people of Coimbatore are humble and open-hearted. 

Education Hub

Coimbatore is transforming into an educational hub. There are several  schools, colleges and universities in the locality.  In addition,  popular research institutes like the Centre for Bioscience and Nanoscience, Arts Research Institute, Central Institute for Cotton Research, etc., are also situated here.

Residential Real Estate Investment Opportunities in Coimbatore

Here are some localities in Coimbatore that are suitable for residential property investment: 

Race Course

The race course is referred to as the poshest locality in Coimbatore. It is also known  as the Switzerland of Coimbatore. People in the high-income bracket consider staying here. There is greenery and neatly laid walking tracks. It is a paradise for joggers and strollers. There are many eateries present here as well. The rate of residential property here ranges around ₹10,000 per square foot.

Saravanampatti

It is an educational hub and  a paradise for students.However,  this area also has  many  townships with gated communities. These townships have apartments where students share accommodation at nominal rates. 

Female students get special accommodation facilities making it one of the best places for women to stay. There are healthcare centres and shopping centres as well. The rate of residential property here ranges around ₹4000 per square foot.

Kovaipudur

Well-known as little Ooty of Coimbatore, this place has three general colleges and a polytechnic college. The temperature here is cooler than in the main Coimbatore city. You can indulge in sporting activities like cricket, football and volleyball here. The rate of residential property here ranges around ₹3000 per square foot.

Read Also: Guide for Nagpur Residential Real Estate Investment

Things to Consider Before Buying a Residential Property in Coimbatore

Here are some points that you might want to keep in mind before purchasing a residential property in Coimbatore:

RERA Compliance

Before opting for a property, it is wise to check whether the property adheres to the norms of RERA. RERA, or the Real Estate Regulatory Authority (RERA), is a statutory body aiming   to maintain transparency and accountability in India’s real estate sector. RERA is an administrative body formed by the Real Estate (Regulation and Development) Act of 2016, under the Government of India and is present in all states.

You can check whether a particular property or builder in Coimbatore is adhering to the norms of RERA by looking their details up on the RERA portal of Tamil Nadu. 

Budget

You should always allocate a budget before purchasing a property. Although there are loans available, you should plan to pay the down payment, monthly instalment, and all other charges like stamp duty and registration charges. 

Resale Value

You should evaluate the escalating rates in property prices for a particular location in the upcoming years.  Assess the locations that will witness completion of the development projects like highways and metro connectivity. It will  result in the rise of property prices in the future. 

Stamp Duty in Coimbatore, Tamil Nadu

The rate of stamp duty applicable in Coimbatore, Tamil Nadu, is as follows:

Registration Charges in Coimbatore, Tamil Nadu

The state government of Tamil Nadu has kept the rate of registration charges in Coimbatore equal. The registration charges applicable in Coimbatore are:

Coimbatore Residential Real Estate Sector: What’s the Forecast?

Coimbatore,  the second largest metropolitan city in Tamil Nadu, ranks top as one of the best places for real estate investment. You can invest in residential property in this city at a low budget and yield huge benefits in the future. As the city is growing  fast  in terms of economy, job opportunities and living standards, more professionals are settling here from various parts of the country.

The Coimbatore property market has been witnessing a revival in demand for residential real estate in the aftermath of the covid-19 pandemic. According to the  Confederation of Real Estate Developers Association of India (CREDAI), customers are looking for larger  residential units in Coimbatore. In addition, the city is growing as a significant nexus for sustainable and well-established residential real estate due to its Smart City program.

Residential Real Estate vs Other Asset Classes

Here is the comparison between residential real estate and other asset classes: 

Residential Real Estate vs Gold

Real estate lets you earn passive income every month, which is impossible in gold.  However, real estate requires a huge quantum of money , while gold investment requires comparatively less   investment. 

Residential Real Estate vs Stocks & Mutual Funds

Real estate offers more consistent returns in comparison to stocks and mutual funds. However, returns are much higher in the case of the latter. Moreover,real estate requires more than mutual funds in terms of the quantum of investment.

Residential Real Estate vs Bond

Real estate offers much higher returns in comparison to bonds investment. Even tax benefits are much better in the case of real estate. However, bonds are more secure and highly liquid investment options. 

If you wish to invest in low-risk bonds and earn stable returns of 9-11%, register on our platform today and start your investment journey. 

Residential Real Estate vs Commercial Real Estate

Residential real estate has more tax advantages if a homeowner takes out a mortgage. However, returns are much higher in case of commercial real estate, as the tenants are mostly businesses and companies. 

Discover More: Guide for Coimbatore Commercial Real Estate Investment

Here is a tabular representation to compare the different asset classes on the basis of returns, liquidity, risk, volatility and ticket size:

Steps to Invest in Residential Real Estate in Coimbatore

Here are the steps that you can follow if you wish to start investing in residential real estate in Coimbatore:

Step 1: Prepare an investment budget and  list of the locations that suit your requirements. 

Step 2: Plan a field visit to the shortlisted locations to assess them in terms of infrastructure, connectivity and amenities. 

Step 3: After finalising a location, prepare the necessary documents like the sale agreement, encumbrance certificate, title deed, building plan, etc. 

Step 4: Complete the payment process. Make sure to complete the stamp duty and registration formalities. 

Step 5: Lastly, consider purchasing an insurance policy to  safeguard your finances if  your property incurs any damage in the future. 

Read More: Guide for Indore Residential Real Estate Investment

Final Words

Coimbatore has a high demand for luxurious and modernised living, which includes modern amenities, a healthy lifestyle  and spacious homes. Moreover, the city offers low-budget investment prospects  compared  to other metropolitan cities. Outskirts of Coimbatore are seeing a major spike in real estate investments due to its connectivity to other parts of the country. 

Frequently Asked Questions (FAQs)