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4 reasons to invest in Kochi, Kerala

Posted by gladrealtors on December 17, 2015
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When compared to active real estate pockets of Delhi, Mumbai, Pune or Bangalore, Kochi’s real estate market appears to be slow. However, there is good news for investors. Infrastructural development, commencement of the much-awaited Kochi Metro, Smart City initiative and opening up of various job avenues in the city are steadily contributing to the property market.

Check out the properties in Kochi

Here is a look at factors that make Kochi a stronghold:

Kochi Metro

The 25-km long stretch between Aluva and Petta would link important junctions like Companypady, Ambattukavu, Kalamassery, Edapally, Palarivatom, Ernakulam South, Elamkulam etc. This is a promising corridor for the growth of real estate in Kochi.

While convenient transport is the agenda, real estate is banking upon locations along the stretch. Property prices have already been on the rise. An optimistic Briji Abraham, a city-based realtor at Everlast Properties says, “Kochi is the business and commercial capital of Kerala. Although Trivandrum might boast of real estate growth, the actual transactions are happening in Kochi and infrastructural developments are always welcome since they invite investors.”

Smart City

Kerala is making an ambitious endeavor in the establishment of the Kochi Smart City, a business township, set to be operational by 2015. It aims to revolutionise the job market in Kerala, estimating 90,000 openings by the year 2020.

This scenario would be favourable for anyone working and investing here. Not only would more jobs create more housing demand, it would also help to create a rental market as well.

The realty growth is expected from the non-locals who would move to Kochi for job opportunities. The cost of living as well as operational expenses is way less in Kochi when compared to the other metros.

Investors can take a cue and wait for Kochi to take off as a major IT destination in the near future. Raguvendra EK, local consultant at Fort Cochin Homes says, “Kochi does not lag behind in literacy, but we do so in terms of generating employment opportunities. Once the job market expands, we are sure to attract double the number of investors we do now.”

Booming of micro-markets

Suburban areas such as Palarivattom, Edapally, Vytilla, Panampilly Nagar, Kadavanthara, Palarivattom are brimming with upcoming projects on a smaller range.

“The region along the Edapally Bypass is gradually transforming into a retail hub and fresh supply of mall spaces can be seen every now and then,” says Hari Balan, a realtor at Shree Krishna Properties. Balan explains, “Kochi is cosmopolitan. Buyers here are much younger and come from diverse backgrounds. To suit their needs, Kochi is coming up with a variety of outlets for recreation, investment and business opportunities.”

This is not all! Áerotropolis and a special economic zone for aircraft related manufacturing units, the development of Vytilla Mobility Hub that is set to channelise the city traffic – all are set to mobilise the capital and rental market of Kochi.

Property prices outlook

As per the data with Magicbricks, multi-storey apartments are popular with 31 per cent of the buying population preferring them. Prices are in the range of Rs 20-68 lakh for a 2BHK unit. Sizes vary from 650-1572 sq ft. If you opt for a 3BHK unit, you would have to spend between Rs 23 lakh to Rs 4.5 crore. Sizes here could range between 800-35000 sq ft.

Although the rental market is not very established, Mani, a city-based broker says, “Demand is more for fully-furnished accommodation. For a 1000 sq ft flat that is close to the IT park, the rent might be as high as Rs 50,000 per month, which youngsters take up on a sharing basis.” Otherwise, flats are available in a broad range of Rs 8,000 per month in Kadavanthara or Kakkanad to Rs 45,000 monthly in Marine Drive.

Hence, if you are a prospective investor in Kochi, do not hold back. The upcoming development in the city assures good returns for any investor with a long term vision.

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