Tamil Nadu’s Tier-II Cities Could Get You Better ROI
According to the Economic Survey 2018, Tamil Nadu has the lowest stock of vacant homes in India, Coimbatore and Chennai with the least number of such homes which is appreciable. Here’s a look at Tier-II cities of Tamil Nadu that real estate experts believe have ample potential.
Coimbatore’s plus point is its electronic manufacturing cluster, Codissia Industrial Park and the upcoming IT developments. If you are looking at property options, try looking at Neelambur and Vellalore. These areas are beyond corporation limits but in the long run, investments herein could prove worthy.
If you are looking at prominent residential locations, Race Course and ATT Colony are plush neighbourhoods commanding anywhere between Rs 7,000-13,500 per square foot (sqf). Other notable investible destinations include Saravanampatty, Ganapathy, Kovai Pudur, Selvapuram, Singnallur, Ramanathapuram with price values between Rs 2,500-6,000 per sqf.
Madurai, on the other hand, has AIIMS, Madurai-Tuticorin industrial corridor and the Vadapalanji IT SEZ.
Popular residential destinations include Anna Nagar, KK Nagar, Avaniyapuram, Sambakkulam, Chokkikula and Iyer Bungalow with price values between Rs 3,000-7,000 per sqf.
Upcoming job opportunities in industrial corridors may lead to more housing demand being generated in the city. As of now, Madurai sees over 20 million tourists and therefore commerce and hospitality segments get to serve them. Besides that, a floating population of about 77 million people who come to Madurai every year is an opportunity in itself for the real estate segment. The Smart City projects worth Rs 300 crore have also started. This is likely to impact the city favourably.
Salem is the defence corridor, has the Chennai-Salem Expressway, aerospace park and other proposed IT developments. These make Salem a city fit for investments. Going ahead, manufacturing, warehousing and mining are also being touted as Salem’s support system. Employment generated within these sectors could contribute favourably and could lead to increased housing demand for mid-priced units, especially apartments.
Fairlands, Yercaud Foothills and Arisipalayam are among the prominent residential locations in Salem. The broad range of price values is Rs 3,000-7,000 per sqf.
This education hub is also set to witness megaprojects taking off. Among the existing strengths of the city include 1,000-acre SIPCOT Industrial Estate near Manapparai, food processing units and artificial diamond manufacturing. If you are going by an investor’s logic, there is a lot of vested potential when it comes to student housing opportunities. One can expect sizeable rental returns by putting their homes on rent in Trichy.
The talent pool in the city also makes it a viable destination for investment. Further, with the smart city projects taking shape, it is expected that real estate will benefit more.
Prominent investment opportunities include neighbourhoods of Thillai Nagar, Raja Colony, KK Nagar, Woraiyur, Srirangam and Crawford and the price range is between Rs 3,500-8,000 per sqf.