Property transactions in Coimbatore had a volatile year in 2020. Transactions comprising sales, lease and mortgages plummeted in the first quarter of 2020 owing to COVID-19 related lockdown. Our data on property registrations in Coimbatore reveals that a quick recovery in property registrations seen post-lockdown didn’t sustain very long. Overall, property transactions in Coimbatore follow a pattern wherein the most number of transactions are registered during the first quarter of the year
Strong Growth in Sales while Mortgage Sees Decline
Coimbatore saw a 45% increase in the share of sales transactions in the three years since 2018. According to reports, Online real estate classifieds and brokerage firms are also seeing increased interest amongst potential buyers in Coimbatore properties. In the same period, the share of mortgage transactions went down by 40%. However, mortgage transactions went up slightly in absolute numbers from 19362 in 2018 to 19914 in 2020. Lease transactions have been stagnant around 1% or around ~600 transactions a year over the same period.
Potential for Growth in Lease Market in Coimbatore
While lease transactions have been stagnant over the past three years in Coimbatore, developments in warehousing and data centres may propel a growth phase of leasing and rental markets in Coimbatore. Coimbatore is rightly placed to benefit from potential warehousing and data centre booms expected for Tier-II cities in the near future. According to reports, property consultants in Coimbatore already see an uptick in demand for industrial and warehousing properties. A positive factor for Coimbatore is its strategic location bordering Kerala and Tamilnadu while not so far from neighbouring Karnataka as well. As such, Coimbatore is a preferred choice for warehousing and distribution infrastructure for FMCG and consumer durable companies especially since the introduction of GST reforms and subsequent removal of checkposts
