Trivandrum, or Thiruvananthapuram as it’s called in Malayalam, is not merely just the administrative capital of Kerala. It is rapidly emerging as a tech and investment hub. If you are an NRI deciding where to invest your savings, this will be valuable for you. Here is a clear and actionable guide to real estate investment strategies in Trivandrum and why NRIs prefer flats in Trivandrum over foreign stock portfolios.
Thousands of new jobs have been created in the recent past thanks to the establishment and growth of IT parks and the Kazhakkoottam IT township. This has led to a strong rise in demand for quality, affordable rental homes and lifestyle apartments. Recognizing this opportunity, reputed builders in Kerala are developing well-planned residential projects in and around the area. These factors make it highly lucrative for NRIs looking to buy apartments to rent out, helping them earn a steady income while also benefiting from long-term value appreciation.
With high remittances coming to Kerala, there is adequate liquidity in the market. A steady demand from NRIs who seek investment avenues that are both safe and tangible ensures that flats will always be needed, and that there will be capital appreciation in the future.
Sales of residences in Thiruvananthapuram surged sharply, showcasing rising buyer confidence.
The average prices for apartments in city pockets are in a range of ₹4,800–₹8,000 per sq ft; this makes the choice of locality crucial.
Normal rental yields for apartments in good neighbourhoods, and close to IT hubs and educational institutions, fetch about 3.5%–5.5%. This is a good, steady monthly income.
Real estate is a tangible asset that is not as volatile as, say, the stock market. Many NRIs prefer this avenue as it is safer.
Such practical benefits are the reason that several NRIs prefer property along with or instead of foreign stock portfolios. This is especially true if they want the dual advantage of an additional monthly income and a retirement nest egg back home.
It makes sense to buy a flat near employment hubs like Sreekaryam, Kazhakkottam, Jagathy, and Poojappura, to ensure maximum tenancy and minimal vacancy.
Selecting reputed builders with a good track record for delivery minimizes the risk of delays and non-completion.
It is important that you choose the flat size according to the kind of tenants you target: 1-2 BHK flats for sole occupants, young professionals, small nuclear families, and 2-3 BHK flats for families with older children, extended families, etc.
It makes more sense to purchase ready-to-move-in flats so that you can immediately start earning an income.
You must consider all related costs like stamp duty, registration, property tax, maintenance charges, furnishing and decor, management costs and so on, in addition to the cost of the flat, to calculate your actual yield.
Planning a combination of capital appreciation and rental yield is ideal, as it can help optimize cash flow and appreciation.
Liquidity: Real estate is not very liquid, and converting it to cash can be slow. There are chances for supply to be in excess of demand in certain pockets, which can bring down rents. Changes in regulations and taxes can happen suddenly, especially local taxes, FEMA, etc.
Is Trivandrum the right place for you to invest? If you are an IT professional, a young family, or an NRI looking for stable, tangible returns along with a home in Kerala, flats in Trivandrum offer an excellent combination of rental income and capital appreciation. This is more so when those flats are close to IT corridors and trusted builders.
Varma Homes has some of the best 2 and 3-BHK apartment projects in the most desirable localities in Trivandrum. Check out our premium lifestyle apartments that reduce commute and offer world-class amenities.