Apartments in Erode — standing tall, growing strong

Apartment culture is catching on in Erode.


THE CHOICE: With land price escalating by the day, there are many takers for flats these days. Flats also give a sense of security.

THE HOUSING construction industry has risen like a phoenix — overcoming a couple of years of mistrust and anti-apartment sentiment among the public.

Flat promoters say the mistrust had to with the bitter experiences a section of the public suffered in the hands of a few apartment builders — accused of dishonest practices and not handing over property in time. However, the public, flat promoters say, have risen above the lumber of the past.

Perception


As for the anti-flat perception, M. Jaganathan of Sree Kumaran Promoters says: "People prefer individual houses to flats — which has more to do with the region being an agricultural area. With this textile town retaining its umbilical cord with agriculture, most of those wanting to invest in houses are in some way or the other, landholders. The pride of owning a land is, they say, not quite there when they go in for a flat. In individual houses, though, the customers enjoy owning a land, plus house."

However, this could be an expensive proposition, say builders, pointing to escalating land cost. "Erode has limited land availability, in the sense, that most of them are agricultural lands, whose owners are reluctant to part with their traditional property and give up agriculture. This leaves flat buyers with little option but to buy land at a premium price and construct a house — shouldering the burden of high land price and a house. In a flat, though, the land cost is slightly lower, as it is shared among the flat occupants," points out K.P. Duraisamy of D.R. Apartments.

A couple of other reasons for people to go in for flats are proximity to their children's education institutions and appreciation of property value.

R. Mohanraj, president, Erode District Civil Engineers Association, says people want to reside close to their child's school or college. This includes those from towns around Erode as well.

"With a good number of education institutions in Erode, particularly on and abutting Perundurai Road, flats are coming up on Teachers' Colony, Thindal stretch of the Perundurai Road," he says adding that those who work in those institutions also prefer to have their houses nearby.

Investment option


There is also another reason for the mushrooming flat culture, promoters say. "Young engineers from Erode who work for a handsome salary in IT companies, look for a safe investment option back home — the first of which is a flat," say Mr. Jaganathan and Mr. Duraisamy. "You can find parents of well-placed engineers buying flats," adds Mr. Mohanraj.

The promoters also point to value appreciation of flats, which for almost all middle class families is the biggest investment in the earning period. "Prior to buying a house, a customer also thinks about the appreciation of flat value, which in Erode's case is happening on Perundurai Road," says Mr. Jaganathan. Says Mr. Duraisamy, a square foot of flat in Thindal costs around Rs. 1,000 as against Rs. 700 a year ago.

Further, as against just two or three enquiries a few years ago, promoters say they get around 10 to 15 a month, and around 70 per cent of them translate into successful deals.

What does the customer say? R. Selvamani, with Tamil Nadu Electricity Board, has a flat on Perundurai Road near Erode. He has rented this out, and stays in a rented apartment at Thindal, where his son's school is.

He says: "It is a safe investment, especially on Perundurai Road. With the flat value appreciating by the year, I might sell it when I require a good sum. Besides, flats are safe to live in and comfortable as well." The future, promoters say, will only be bright as Erode is growing and more companies are setting shop in Perundurai SIPCOT — near Erode. And they add, as land prices escalate, people will turn to flats!