The Kerala real estate sector is seeing one of the fastest economic growth spurts in this season. The rapid growth in the real estate sector can be attributed mainly to the population increase in Kerala, and also the easy availability of finances for people to invest more in real estate.
The Kerala real estate segment comprises of a good mix of thoughtfully planned building projects, including high end commercial establishments, hi tech office spaces, comprehensive residential layouts, and even sophisticated IT parks.
Kerala is indeed God’s own country, blessed with the best of what nature has to offer. And this plays a direct role in the upward mobility of the real estate market. The state is blessed with good weather year round, and ample greenery to brighten any real estate space. Kerala is also an internationally acclaimed tourist destination, so several tourist cities are seeing a major growth now despite the recession that took a toll on the tourism industry in the last decade.
Key cities like Kochi, Trivandrum and Calicut are acting as people magnets, attracting more investors especially in the real estate sector. Let us look at the current real estate trends in these three major cities.
Kochi
Kochi is a strategic port city located in Ernakulam district. Often referred to as Ernakulam, the Government of India has classified Kochi as a Tier-II city. The city is home to the Kinfra Hi-Tech Park and major chemical industries such as FACT, TCC, IREL, HOCL and Kochi Refineries. Some industrial parks like the Cochin Special Economic Zone and Infopark have also been set up at Kochi. The city also boasts of commercial maritime facilities such as the Port of Kochi, the International Container Transshipment Terminal, and the Cochin Shipyard.
When it comes to tourism, Kochi ranks first in the number of international and domestic tourist arrivals in the state of Kerala. According to a survey conducted by the Nielsen Company (in association with Outlook Traveller magazine), Kochi is ranked the sixth best tourist destination in the whole of India.
Kochi is also the commercial capital of Kerala, and is fast becoming a real estate hot spot with several major developers hoping to build up their presence in the city. The steady growth of the property market in Kochi can be largely attributed to the city’s infrastructural development, commencement of the much awaited for Kochi Metro, the Smart City initiative, and the large number of job opportunities in the city.
The metro connecting Aluva and Petta covers a 25 Km stretch, linking important junctions such as Companypady, Ambattukavu, Kalamassery, Edapally, Palarivatom, Ernakulam South and Elamkulam. This is a very promising advancement for the growth of Kochi’s real estate market.
Kerala is in the process of establishing Kochi Smart City – an ambitious endeavor towards creating a business township with will definitely revolutionize Kerala’s job market. The realty sector is expected to see exponential growth as more non-locals migrate to Kochi to fill up new job openings in the city. Living costs and operational expenses are also much lower in Kochi when compared to other metros, so the city does attract a wider segment of people.
With new mall spaces coming up along the Edapally – Maradu bypass, Kochi is slowly but surely transforming into a major retail hub. Even suburban areas like Palarivattom, Edapally, Vytilla, Panampilly Nagar, Kadavanthara have upcoming projects on a smaller scale. All these advances only prove that there is going to be more action in Kochi’s real estate market.
Kozhikode
Kozhikode is Kerala’s third largest city with a population of more than 20 lakh people. The majority of the city’s inhabitants are employed in the Middle East, and it is their remittances that serve as a major source of the city’s economy.
Almost every business sector has its industrial establishments in Kozhikode. Whether it is the business of producing mineral water, manufacturing compressors, material handling, wire netting, pipes, oil and essentials, fiber glass producers or latex processing, Kozhikode has it all. The major industrial hubs in the city are located in Feroke, Karapparambu, Nadakkavu, Kasargod, Kannur Chettikadavu and Cheruvannur.
Kozhikode city boasts of the presence of at least 40 IT companies. The fact that the city is just 6 hours away from Bangalore, and 4 hours away from Mysore, and the presence of major educational institutions like IIM Kozhikode, are just an indicator of the major IT hub that the city is going to become in the coming years.
Major infrastructural developments are underway in Kozhikode, including the State Government’s plans to connect the city through mono rail. Based on the research data compiled by Indicus Analytics on residences, earnings and investments, Kozhikode ranks as India’s second best city to reside in. And according to a study conducted by ASSOCHAM in 2007, it was ranked eleventh in job creation among Tier-II Indian cities.
With all the current and upcoming business and infrastructural advancements, the real estate market in Kozhikode is definitely on the fast track towards incredible growth.
Trivandrum
Trivandrum, Kerala’s capital city is also the second largest city in the state. As state capital, Trivandrum is home to a large number of State and Central Government establishments. It is no surprise that Government employees account for a large portion of the city’s population. Trivandrum is located very close to the neighboring state of Tamil Nadu, so it serves as a major entry point between the two states.
The majority of developments in Trivandrum are happening in places like Vattiyoorkavu, Vazhuthacaud, Vellayambalam and Technopark. The job openings at Technopark are attracting a variety of IT professionals to the city, thereby giving the city’s real estate market a huge boost. The Vizhinjam harbor project is also in the works, and will be a game changer in the real estate industry once the work commences.
The State Government also has plans to develop a mini metro rail project in Trivandrum which will be a major development in the city, fueling its economic and real estate growth. All major real estate builders and developers have a strong presence in Trivandrum with quite a few residential and commercial projects in the works. Real estate investments in the state are sure to take a turn for the better in the days to come.
Kerala is definitely going through some huge lifestyle changes in this era. The earning potential of the people in the state has drastically increased, and so has the growth in health and family welfare schemes. This has directly led to the rise of the real estate business in Kerala.
The present generation is also changing it’s general outlook and there is huge progress in their socio-economic status, causing more people to build homes at an early age. Home financing has also become easier to avail, encouraging more people to get a head start on their dream homes. With the increased developments that we’re seeing in Kerala’s major cities, now is the best time to start investing in real estate.