While Ooty and Coonoor have their bustling spots, imagine owning your own sanctuary of tranquility. Of waking up to crisp, eucalyptus-tinged air and setting out on long walks to de-stress from your city life. With the India Meteorological Department (IMD) predicting an “above-normal number of heatwave days” this summer, it’s no wonder people are already dreaming of month-long holidays in mist-clad hills. In Tamil Nadu, this would include Ooty and Coonoor in the Nilgiris, known for their water bodies, scenic trails, tea gardens and colonial era bungalows.
Over the past two years, the real estate market in the Nilgiris has experienced a significant surge, attracting diverse buyers, ranging from the who’s who of the corporate world to retirees seeking a quiet lifestyle to ambitious youngsters who want to make a smart investment. Experts in the real estate sector argue that Ooty, once a popular destination, has now become saturated. They say Coonoor and Kotagiri are the two primary regions being considered by buyers. Property prices here have soared over the past two years and land, which was previously valued at ₹4 lakh to ₹5 lakh per cent has now exceeded ₹10 lakh (depending on the location) per cent.
Kotagiri for budget-friendly options
“Coonoor has evolved into a settler’s paradise, while Kotagiri has become an investor’s playground,” says Ashish Kishore Mehboobani, founder and managing partner of Avant Realty by A&N consultants. “Before COVID-19, the market was healthy — but the pandemic completely shifted the market dynamics. People started seeking silence over city noise, views over skylines, and clean air over chaos. Real estate in Coonoor is no longer for the ordinary — it’s aspirational and curated. Kotagiri, on the other hand, is value-rich and offers budget-friendly opportunities for anyone dreaming of a place in the hills,” he continues.
Having consistently tracked the real estate scene in this hill station, Mehboobani observes that Upper Coonoor is equivalent to Chennai’s Boat Club Road. “Brooklands, Tiger Hill, Upper Attadi, Bandishola and Bettati are sought after for their exclusivity, colonial charm, and natural beauty. In Kotagiri, the belt between Kotagiri town and Kattabettu is getting attention for its convenience and pristine views,” he explains, adding that the next hotspots are just beyond the town limits — within a 10 km radius of both Coonoor and Kotagiri. “Areas like Aravenu, Kodamalai and parts of the Ketti Valley outskirts are quietly but quickly gaining traction,” he says.
Coonoor wins over Pune
In Coonoor, prices in premium pockets now range from ₹8 lakh to ₹16 lakh per cent, while Kotagiri ranges between ₹2.75 lakh per cent and ₹6 lakh per cent depending on view, access, and location. Local developers in this area mention that the price of a ready-to-move-in home ranges from ₹75 lakh to several crores of rupees. Colonial-era bungalows, which come up for sale, are priced from ₹3 crore to ₹6 crore and can go up to ₹15 crore. These properties often include expansive gardens or, in some cases, a small tea estate. Developers reveal that a few properties are still up for grabs with a price tag of above ₹15 crore. “Some of these properties are over 100 years old and they include antique furniture that are made of rosewood and teak wood. If one has to source such furniture elsewhere, it would cost them a few lakhs of rupees as rosewood is very expensive now,” a real estate developer in Coonoor points out.
Nostalgia, the driving force
So what is driving the real estate market of Nilgiris, which like Kodaikanal and other hill stations, is part of the Western Ghats? Nilgiris is a distinctive destination where property buyers often share a deep emotional connection to the area. Many have personal ties, having studied or spent formative years in the hills. Coonoor town has become a favoured retirement locale for army officials who trained at the Defence Services Staff College (DSSC) during their younger days.
Many actors and filmmakers who have visited this hill station for their shoots have ultimately chosen to make it their second home. Locations in and around Sim’s Park and Bandishola have become a coveted destination for some of the most prominent industrialists and tech giants in India’s IT sector.
Interest from Hyderabad and Kochi
“A few of our clientele, particularly those in their early 60s and 70s, have shown a growing interest in the Nilgiris region. They’re drawn to the idea of setting up summer offices, joining the ranks of India’s elite who already have a presence there. Also, we’ve observed a trend among residents from urban cities like Chennai, Hyderabad, Kochi and Thiruvananthapuram, who prefer acquiring second homes in hill stations to escape the intense summer heat,” explains Jerry Kingsley, India head, Value and Risk Advisory & City Lead Capital Markets, Jones Lang LaSalle (JLL). “In addition to this, a prominent Indian hotel chain has recognised the potential in these region. They are establishing a new homestay in Coonoor, further enhancing the appeal of the Nilgiris as a prime destination for luxury vacation accommodations,” he reveals.
Nature and safety, a big plus
V. Ramkumar, a retired corporate professional has lived in several cities across India and abroad. Over time, the question of where to settle has begun to occupy his thoughts. Originally from Hyderabad, with his wife hailing from Mumbai, they had considered Pune as their retirement destination. “Initially, Pune seemed like the perfect place. But I realised that the city’s traffic and pollution were becoming increasingly difficult to tolerate. I always had an interest in nature and wildlife, and decided to move to the Nilgiris,” he shares.
Years ago, he had purchased a parcel of land in the Nilgiris and when retirement was finally on the horizon, he and his wife built a home here. “Crime rate is less, people are warm and the cost of living is reasonable here,” Ramkumar notes. Real estate analysts point out that the presence of historic clubs and the Wellington Gymkhana Club Golf Course is attracting the cosmopolitan crowd.
S. Sridharan, director, Lyra Properties and EC Member, CREDAI National confirms that the region has become a popular retreat for middle-aged individuals seeking a break from burnout, with many venturing into activities such as vegetable gardening. “Local communities are selling land as they move to Coimbatore or other areas, and many bungalows are being sold by owners whose children have moved abroad and no longer wish to maintain the properties,” he says.
Approvals and other challenges
While owning a home in the hills offers numerous advantages, such as breathtaking views and a peaceful environment, it also comes with its fair share of challenges, agree real estate experts. The availability of premium homes, both modern and refurbished, is limited due to several factors such as strict approval processes, scarcity of prime land, and high land costs, says Kingsley. These constraints create a competitive market for desirable properties, potentially driving up prices and requiring buyers to balance preferences with practical considerations, he adds.
Sridharan explains that one of the key challenges of real estate development in Coonoor, as in many other hill stations, lies in navigating the approval process. “Obtaining three essential No Objection Certificates [NoCs] from various departments, including the mines and forest departments, is crucial. Only after securing these can developers or individuals proceed with their projects,” he says. The mines department assesses land levels, while the forest department ensures compliance with environmental regulations.
Unauthorised layouts are also a concern, especially as roads are being laid without proper approval. “To address this, there needs to be a common set of rules for everyone. The approval process should be streamlined by the government to make it easier and more efficient,” he adds.
Published – April 25, 2025 04:56 pm IST