Demand up for retail space as more brands want to open shop in Coimbatore

Coimbatore’s property market is seeing an upward demand trend for retail space as more brands want to open shop here.

Be it supermarkets or branded showrooms, they are looking at presence in multiple locations in the city.

S. Visweswaran, president of Coimbatore Association of Realtors, says lot of companies and brands are coming to Coimbatore. Brands in different sectors such as textiles and automobiles are looking at opening outlets in Coimbatore, Erode, and Salem in this region. Hence, their demand for space is high. Some of the brands and supermarkets already present in the city want to expand in different areas. They also want warehouses. Hence, there is a demand for large retail spaces.

According to JLL India, not many new retail properties came up in the last two years, resulting in inadequate supply for retail space. The demand is from all segments of retailers and across the city. There is a need for 800 sq.ft to 1,500 sq.ft. retail areas and there are not many options now.

Another realtor points out that after the implementation of GST and e-way bill, Coimbatore has become a hub for movement of goods. The demand for large warehouses has picked up. A couple of industries have also set shop in the district in the last one year.

Mr. Visweswaran adds that the demand for space in the educational segment and small IT companies is growing. These IT companies are willing to buy space too. Coimbatore also expects more multiplexes spread in different main locations, he says.

According to JLL India, the residential rentals have, however, not increased much in the last couple of years. The growth in residential rentals is specific to a few localities and also depends on the property. Across the core areas of the city, the demand is mainly for rental properties of less than ₹15,000 a month in the residential sector.