03 Oct-2023

Real Estate Market Trends in Kochi

Posted onOct 03, 2023
by by Ajmal T V
Kochi, Real Estate Market Trends in Kochi

Anyone who is serious about investing in real estate must stay up-to-date with market trends; what types of properties are commanding more rent? Which localities are in high demand. What are the new regulations being introduced? What is the right time to buy or sell?

By knowing the answers to these and other questions, investors can make smart decisions to maximize their ROI. Market trends help investors identify opportunities and exploit weaknesses to make profits.

Kochi is the biggest, most developed, and most cosmopolitan city in Kerala, and is also its commercial capital, with several corporate offices and IT companies headquartered here. This in turn attracts professionals to the city in droves, creating a huge demand for housing. Apart from residential properties, there is a huge demand for commercial and industrial properties as well. Infrastructure development has been rapid too; all these factors make Kochi the ideal city in Kerala for real estate investors.

Residential Real Estate Trends in Kochi

Recently, the residential real estate market is undergoing a radical transformation. Several factors influence the demand and supply in this sector:

The rapid growth of the IT sector and tourism has led to a burgeoning economy, attracting professionals and investors, and increasing demand.

Kochi metro and highway projects have improved infrastructure and connectivity, making it a more appealing city to live in. Areas along the expanding Kochi metro project are seeing more real-estate development.

RERA regulations and the PMAY initiative have also impacted demand and supply. The state government has introduced affordable housing schemes, which are ideal for first-time buyers or low-income groups.

These are the key Residential Trends

  1. The IT corridor comprising SmartCity Kochi and Infopark has spiked demand for housing in surrounding areas.
  2. There is a sudden mushrooming of affordable housing projects to cater to the needs of the middle-class buyers and investors.
  3. Flats in Kochi remain the number one choice due to the convenience and security they offer; villas in gated communities rank second.
  4. Neighbourhoods that have schools, healthcare facilities, IT parks etc. are the most sought after - like Edappally, Palarivattom, Kadavanthara, etc. Tripunithura,  Vyttila, Eroor, and Vazhakkala are preferred for their pleasing surroundings in addition to availability of essential services.
  5. More people are demanding sustainable construction and eco-friendly initiatives like rainwater harvesting, green spaces, solar powered lights, and proper waste disposal systems.
  6. Smart homes with automation are gaining popularity as they are more secure and make life easy.
  7. The real estate market in Kochi has remained pretty stable, with steady appreciation as expected

Kochi's residential real estate market is evolving with a focus on sustainable living, cost-effectiveness, and modern amenities.

Real Estate Value Appreciation in Kochi

Let's see what is causing value appreciation of real estate in Kochi:

  1. There's a high market demand for properties especially in localities close to commercial hubs and essential services
  2. Waterfront properties, and those close to transportation hubs and safe localities appreciate rapidly
  3. Properties with modern amenities, green spaces, and security spaces command high prices.
  4. Which Neighbourhoods are the most sought-after and have the highest appreciation
  5. Vyttila - at the intersection of major roadways, it's a popular neighbourhood for buyers and investors
  6. Kadavanthara - a major commercial centre and prime residential area
  7. Thripunithura - the land of temples and a rich heritage, it's a tourist destination
  8. Palarivattom - an important commercial centre in the heart of Kochi, with proximity to the Infopark
  9. Edappally - home to Lulu Mall, this area is a bustling commercial hub

Infrastructure and Connectivity in Kochi

It is no secret that infrastructure development has a massive impact on the real estate market. When there is infrastructure, it attracts businesses; this gives rise to a need for property development, both commercial and residential.

Kochi has several infrastructure projects in the pipeline. The Kochi Metro is being expanded, and the Kochi Water Metro project has also been proposed. Roads and highways are also being built to improve the city's connectivity with other cities not only in Kerala but also in other states.

There is no doubt that the improved connectivity with better and more roads, metro, and so on, will give rise to demand for housing along the areas that are being connected; in fact, there is already an increasing demand for real estate development in new areas which are now being connected by Kochi Metro and highway projects.

Technology Integration in Kochi

Here how technology is transforming and re-shaping Kochi's real estate market:

  1. Proptech solutions like virtual tours are becoming increasingly common. AR and VR technologies deliver immersive experiences to prospective buyers and investors.
  2. Property developers and real estate agents alike leverage mobile apps and websites to list properties and market them, reaching more people easily.
  3. Blockchain is making its entry slowly into the real-estate market as it facilitates transparency, reduces risk, and streamlines processes related to property deals.
  4. Data analytics tools are popular with real estate professionals as they offer actionable insights into market trends, buyer preferences, prices, etc.
  5. Developers and agents also use CRM software to deliver personalized services to customers.
  6. Online mortgage calculators enable buyers to check loan eligibility and their EMIs, streamlining the financing process.
  7. Home automation solutions allow buyers to control appliances, ambient temperature, lighting, and more from their mobile apps.

Sustainability and Green Building in Kochi

There is a rising demand for sustainable construction practices, eco-friendly and green initiatives among buyers and investors, as awareness spreads about the need to protect the environment. More people are demanding energy-efficient electrical equipment and lighting, green energy sources like solar panels, rainwater harvesting, proper waste segregation and responsible disposal, more green spaces, and so on.

The state government has also announced various initiatives to promote eco-friendly construction and green buildings. Certificates will be awarded based on several criteria, beginning with the land chosen for construction. Incentives are in the form of reduced tax liability and so on.

Real Estate Regulatory Changes in Kochi

As property tax rates were fixed in 1995 and not revised for the past thirty years, the Kochi corporation is proposing a plan to bring more buildings into the tax purview. An additional payment for extra FSI has been proposed.

Future Projections in Kochi

As a city with a major port, efficient and expanding Metro system, wide roads, excellent connectivity, and tremendous commercial activity, one can only say that the future of the real estate investment strategies in Kochi is very bright. We can say confidently that the demand for high-quality real estate projects will only increase in this metropolitan city. The city is already witnessing high economic growth and urbanization. With nuclear families becoming the norm, one can predict a spiralling demand for flats in Kochi. 

Conclusion

It is evident that the residential real estate market in Kochi is growing, but there is a shift towards affordability and sustainability, with the availability of modern amenities. Important areas and types of housing are evolving to cater to the eclectic needs of the changing demographics and the growing population. It is definitely an exciting time to get involved in the real estate market in Kochi.

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