While the established real estate players from outside Tamil Nadu test the waters first in Chennai before entering Coimbatore, the Bangalore based Salarpuria Sattva Group is making a foray into Coimbatore before entering Chennai market.

The present status of the realty market in the city where it is under some pressure due to economic slowdown has not put off the company as it is confident of the market bouncing back since Coimbatore boasts of many positive features that draw people to it.

Bijay Agarwal, Managing Director, Salarpuria Sattva Group, explaining the logic of choosing Coimbatore ahead of Chennai in an interaction with Business Line , said, “From an investment point of view, Chennai is a matured market, but Coimbatore is just beginning to get on the fast track”.  

He said State government was giving push to the city’s development which was now unfolding. As the city industries grow and the widely-travelled people are drawn towards it, premium builders like himself sense that this was “the right time” to enter the Coimbatore market. 

On the strategy of entering a market that was already having a lot of unsold home inventory, he said the major advantage of the first residential project the company will be shortly launching was its location – at the Lakshmi Mills circle on Avinashi road. This was in the heart of the city, between the railway station and the airport.

Reasonable pricing

Without divulging the project cost or apartment pricing, Bijay Agarwal said the company planned to “enter the market with a complete product at reasonable pricing”. The company would bank on its core strengths of the lifestyle it offered, quality of construction and timely delivery.

Coimbatore for real estate market

Conceding that Coimbatore was going through a rough patch, he said the city has too many good things going for it to be under pressure for long. The city’s charm was its strong foundation – from basic industries to IT, support services, education, health care, retail etc. Besides, its great location, which is close to hill stations, ensures salubrious climate that gets it a thumbs up from developers. He said his group believed that the down time was the best time to invest to reap rewards when the market bounces back.

Reposing faith on the Coimbatore project location – Lakshmi Mills junction that is more commercial than residential now – , Bijay Agarwal said years of experience had given his company the expertise of what combination would make for a successful development and he saw great potential for residences in a central location like the Lakshmi Mills circle in the city. He explained in the company’s projects in Bangalore, Hyderabad, Kolkata, Pune, Jaipur, Goa and Vizag, almost always it was location that attracted investors who got ‘excellent ROI (Rate of Return)’.

He added that the company ‘will soon be announcing a good price to early buyers’. The project would have apartments in different sizes - 1, 2, 3, 4 BHKs and would come with premium features.

He mentioned his company was ‘very bullish about Coimbatore’ and was in the process of acquiring more land. Its future plans included foraying into commercial, retail as well as township development here.

Elaborating on the group’s plan in Tamil Nadu, Bijay Agarwal said it was in the process of ‘finalizing a few land parcels in Chennai’ and was ‘looking for more’. It would also enhance its presence in Hyderabad, Chennai and Bangalore. It has significant presence in Kolkata, Jaipur, Pune, Goa and Vizag too. 

Without divulging the financials, he said his company was growing at 40 per cent year on year. The three decade old company is into both commercial and residential projects. 

Related Topics
comment COMMENT NOW