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.
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.
Kochi's residential real estate market is evolving with a focus on sustainable living, cost-effectiveness, and modern amenities.
Let's see what is causing value appreciation of real estate 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.
Here how technology is transforming and re-shaping Kochi's real estate market:
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.
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.
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.
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.