Demand for residential apartments has shown signs of revival in Tiruchi after the slowdown by the impact of COVID-19.
Most promoters, who kept a low profile in 2020 and 2021, focused on finding takers for completed flats during the post-pandemic period. They did not show a hurry to launch new projects. They followed a ‘wait and watch’ approach in launching new projects. The approach is said to have helped promoters to clear the unsold flats. Except for a few, most promoters are reported to have cleared the stocks. They have now begun new projects.
According to industry sources, about 50 projects have been initiated in the recent past. While the focus of the promoters is still on Srirangam, thanks to non-resident Indians (NRIs), who prefer to buy flats in the temple town to spend their post-retirement life, new projects have come up in Karumandapam, K.K. Nagar and Vayalur Road. A few promoters have launched their projects in Kattur on Thanjavur Road. However, areas such as Thillai Nagar, Woraiyur and Cantonment have hardly new projects. Twenty-five more projects are on the pipeline.
“We have observed that the demand of new flats has gone up. It has motivated us to start new projects,” says S. Anand of Jayam Builders in Tiruchi.
Huge land costs in Thillai Nagar and Cantonment have driven away the promoters to upcoming and developing areas such as Vayalur Road, Karumandapam and K.K. Nagar, he adds.
Industry leaders say there has been sharp increase in land, labour and material costs during the post COVID-19 period. It was expected that the change of guard in the State would bring down material cost and registration and stamp duty. But, they continue to go up under the current regime too and it has impacted the sale price of flats too.
“The average cost of the projects has gone up by 10% to 15%. It has reflected on the rate of new flats,” says another promoter.