CASH
IN on budget flats in a big way. Amid a flurry of constructions
of huge factory buildings and lavish residential colonies in and
around Tirupur, the trend of constructing small size apartments
catering to the low and medium segment is taking shape.
Sky high
The galloping material costs, acute shortage of construction workers
and sky-high land price have not deterred constructions.
Though not in a fully organised manner, construction of low-end
apartments is taking place in the town in a silent way, says R.
Easwaran of KRC Constructions and Infrastructure Limited. Though
apartment culture is yet to gain momentum in this developing town,
investments are taking place on budget flats mainly to create
assets and to enjoy maximum rental benefit out of them.
Unlike big projects these activities are small but spread across
the town.
New trend
Mr. Easwaran points out that this is a new trend to Tirupur
and landowners and investors are adopting this line to cash in
on spiralling house rents.
"Numerous such constructions are going on. If anyone has
land of one ground or two, it may not require huge investment
to construct six or eight flats comprising a single bed, hall
and kitchen on them. Considering high rental income in this housing-starved
town, they could regain the money easily,'' he said.
Apart from its nature of safe investment and increasing property
value is also pushing the investor to choose it.
Low response
Compared to other cities, the response to apartment culture
may be low here.
But surely it is gradually increasing, says M. Kalaiselvan, a
civil engineer.
Increasing land cost deters middle class people to own an individual
house in a prime locality and the apartment system comes in handy.
North Indian businessmen, who started to settle down in the town
a decade ago, have shown the way of living in apartments.
Vacant apartments are being occupied for the last few months
in the town, clearly underlining the demand for houses and scarcity
of land. Mr. Kalaiselvan says promoters too are willing to sell
houses or flats instead of selling vacant land and there is good
response for such projects.
Construction of high-end luxury apartments by a few big names
is on the way and there is a class to buy them.
Likewise, construction of housing colonies and apartments ranging
between Rs. 12 lakh and Rs. 15 lakh to cater to the middle class
segment is also progressing in different parts.
On the absence of massive apartment projects for the middle class,
Mr. Easwaran says still there is doubt in the minds of promoters
whether there will be enough takers for such flats.
But he is confident that in the coming days the trend will go
down well.
