Vilankurichi, Coimbatore

Tamil Nadu has launched a Rs 1.5 lakh crore mission to improve urban infrastructure across the state, with Coimbatore being a key focus. The mission includes plans for drinking water, sewerage, solid waste management, roads, greening, waterbody restoration, and social infrastructure.

In 2026, construction costs in Tier-2 cities like Coimbatore are estimated to be 10-15% lower than in major metros, offering a favorable 'sweet spot' for residential investments. While material costs may fluctuate, factors like government permissions, utilities, and contingency buffers are crucial considerations for budgeting.

Land acquisitions for real estate projects saw a slight dip in the last fiscal year, but listed companies remained active, particularly in Tier II and III cities like Coimbatore. These developers are increasingly focusing on housing projects in these cities, driven by shifting consumer demand towards branded developers.

Construction of a bridge over Kanthayar near Sirumugai in Coimbatore district has resumed, which will improve connectivity for tribal hamlets. The Coimbatore Western Bypass project is nearing completion and is expected to significantly ease traffic congestion and improve logistics. In the real estate sector, Coimbatore is emerging as a key Tier-II city for office leasing, with activity nearly doubling in FY25 .

The Coimbatore Corporation's proposed 2026-27 budget primarily features ongoing projects, such as the Noyyal river front development, bio-CNG initiatives, and waste-to-energy plants, including provisions for the completion of projects like the Ukkadam bus terminal and underground drainage works.

Coimbatore's real estate market demonstrated steady growth in 2025, with Vilankurichi plots experiencing a 24.7% annual rise. Peelamedu and Saravanampatti averaged ₹4,900–9,450 per sq. ft. The report notes that urbanization is deepening in Tier-II cities like Coimbatore, supported by new highways and metro extensions, which have strengthened buyer trust through RERA compliance.

The second Master Plan for Coimbatore, released by Chief Minister M.K. Stalin, outlines a vision for the city's development by 2041. Key proposals include a 119.3 km outer ring road, nine industrial clusters, and five economic corridors, aiming to foster economic growth, improve transport systems, and accommodate a projected population of 58.4 lakh.