Posted on November 17, 2025 Share this article:

Is Coimbatore’s Real Estate Market Set for a Boom in 2025? Here’s What Experts Say

Coimbatore closed 2024 with a statistic that turned heads across mortgage desks and family WhatsApp groups alike: home-sales volume jumped 36%, the fastest pace among India’s 15 largest tier-2 cities, while the combined value of these markets rose 20% year-on-year. With metro rail earthworks scheduled to begin in March 2025 and an airport terminal that will quadruple in size, the question doing the rounds is no longer “Should I buy in Coimbatore?” but “How soon can I get a unit before the boom becomes a blast-off?”

The 2024 score-card that started the buzz  

PropEquity data shows Coimbatore outsold every comparable city even as average ticket sizes crept upward, proof that demand is both volumetric and price-elastic. “We saw similar momentum in Surat and Indore two years ago, but neither matched Coimbatore’s 36 % clip,” says a senior analyst at the data firm. Money-control quotes him adding that “pricing power this strong is rare outside the top-seven metros.”  

Radiance Realty’s experience mirrors the macro story. Its premium villa enclave Radiance Splendour—63 villas on 4.2 acres in Vedapatti—was fully sold ahead of schedule; buyers, mostly garment exporters and tech entrepreneurs, paid an average ₹ 1.2 crore per unit. Check the project page and you will see every villa tagged “sold out”. Clearly, local liquidity is not an issue.

Macro drivers turning heads  

Infrastructure is the loudest bull-case.  

- Metro: Tamil Nadu approved the Detailed Project Report in February 2024; Line-1 (Ukkadam–Airport, 20.4 km) and Line-2 (Junction–Valiyampalayam, 14.4 km) will be entirely elevated along Avinashi and Sathy Roads. Land acquisition begins March 2025, signalling that physical construction is barely 12-15 months away.  

- Airport: The Airports Authority of India has already taken possession of 605 of 627 required acres. The new 75,000 sq m terminal will handle 4,200 peak-hour passengers and add 14 aero-bridges; the runway extension to 3,800 m opens direct routes to Europe and South-East Asia. Compound-wall completion is targeted for September 2026, effectively making the deadline legally binding.  

Add rental yields of 2.5% in suburban pockets and up to 4.5% around IT hubs such as Saravanampatti, and you have the classic twin-engine story: infrastructure-led capital growth plus income yield that beats bank deposits.

Micro-markets that will move first  

Avinashi Road: Already the city’s commercial spine, the corridor will host seven metro stations. Grade-A office stock is below two lakh sq ft—tiny compared with Chennai’s suburbs—so any fresh supply here typically leases within two quarters.  

Sathy Road–Saravanampatti belt: Home to Coimbatore’s start-up grid and Kumaraguru College, the stretch accounted for 28 % of new apartment launches in 2024. With Line-2 passing through Gandhipuram and Saravanampatti, rentals are projected to rise 8-10 % annually even if the wider market settles.

Voices of caution & optimism  

Tier-2 depth is improving; Coimbatore could outperform even Bengaluru periphery on percentage returns over the next 36 months,” says the PropEquity outlook note. Local CREDAI office-bearers counter that “buyers must still prioritise builders with completion track-records; approvals alone don’t pay rent.  

Radiance Chief Operating Officer V. Srinivasan points to the firm’s quality-assurance protocol—40,000-plus digital checkpoints, on-site QA/QC labs and a history of early hand-overs. Radiance Flourish, for instance, received completion clearance on 25 October 2024, five months ahead of the contractual date (see customer testimonials). “When investors see physical delivery before schedule, the yield maths becomes real,” he adds.

Investor & end-user playbook – five takeaways  

1. Enter early in the Metro corridor catchment before construction starts.  

2. Prioritise RERA-registered, phase-completed projects to avoid delays; verify approvals on the TN-RERA portal.  

3. Leverage current home-loan spreads; every 25 bps hike trims eligibility by ~3 %.  

4. Target 3BHK+ formats; scarcity premium as land costs rise.  

5. Insist on developers with QA/QC labs and documented early delivery—check Radiance Flourish example and statutory compliance page for sample reports.

Radiance call-to-action

For buyers who have watched Chennai prices run away, the city offers a rare blend of yield today, capital growth tomorrow and a quality of life index that still feels like old-school Madras. Explore Radiance Realty’s current inventory—Imperia villas, Regalia plots and the upcoming high-rise Crest—at the Coimbatore projects hub or book a site tour via WhatsApp. If the experts are right, 2025 may be the last window to board before the metro—and the market—leaves the station.