Coimbatore, Madurai, Trichy, Salem future engines of growth for TN, says report

Chennai:

 Coimbatore, Madurai, Trichy and Salem are the cities which will fuel the next phase of growth as the state government has lined up several projects to spae the future of these cities, according to a report by Jones Lang LaSalle, a global real estate firm.

The report ‘Advantage Tamil Nadu: Conquering beyond Boundaries’ which was released by Deputy Chief minister O Paneerselvam during STATECON, organized by Confederation of Real Estate Developers Association of India (CREDAI), the four cities stood out in terms of per capita income and score based on 12 key growth-related elements which were grouped in three main sun-indices which include socio-economic momentum, enhanced connectivity infrastructure and high value incubators.

The four emerging hotspots have shown the potential to emerge as business destinations backed by business friendly policies and connectivity with hubs like Chennai and Bengaluru resulting in growth of several industrial clusters.

The report stated that two industrial parks in Moperiplayam and Kallapalayam, developed by Coimbatore District Small Industries Association (CODISSIA) with state government are expected to become operational before mid-2019 and Tamil Nadu Electronics Industries Association plan to establish electronic manufacturing cluster in Coimbatore will spur the real estate growth beyond the corporation limits of Neelambur and Vellalore.

Similarly, Madurai’s Vadapalanji IT Special Economic Zone which is set to become operational by end of 2018, and development of two industrial corridors(Madurai-Tuticorin and Madurai-Coimbatore) is expected to attract major business houses and create job opportunities. Similarly, the setting up of AIIMS will also make Madurai a major medical hub in South India.

“The major economic activity will continue to be tourism and agriculture but it is predicted that the upcoming industrial corridors will help to diversify and expand economic base of the city,” the report stated.

In Trichy, the defence corridor and and SIPCOT’s plan to set up 1,000 acre industrial estate near Manapparai is likely to open up new avenues for real estate development.

Similarly, Salem will thrive on its aerospace park and proposed 277km Chennai-Salem Expressway which will make the city attractive for investments. Mining, manufacturing and warehousing potential will support the city’s development, the report stated.

Factfile:

Coimbatore:

1.  Growth in residential real estate market is expected beyond the corporation limits like Neelambur and Vellalore

2.  Proposal ffor various flyovers to increase connectivity within the city

3.  Affordable projects announced in peripheral locations of Mettupalayam Road and Avinashi road.

4.  Warehousing set to gain traction

5.  Growth in hospitality industry with completion of upscale hotesl such as Vivanta by Taj, ITC Welcome etc

Madurai:

1.  Vadapalanji IT SEZ to be operational by 2018 end

2.  Opening up of AIIMs to make the city major medical hub

3.  Tow industrial corridors (Madurai-Tuticorin and Madurai-Coimbatore) to attract major business houses.

Trichy:

1.  Sipcot planning 1,00 acre industrial estate near Manapparai

2.  Upcoming ITC food processing unit and artificial diamond manufacturing unit in Viralimalai region

3.  City strategically located and connected to Chennai and Bengaluru and provides scope for industrial and manufacturing growth

Salem:

1.  Part of defence corridor and selected to become one of the smart cities

2.  TN promoting development of IT and IT enabled services industry with proposed IT park in the city

3.  Proposed 277km Chennai-Salem Expressway

4.  Aerospace Park located at Salem-Namakkal Road to attract increased investments

(Source: JLL)