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- Kerala property bubble busted. The artificial inflation of the property in Kerala has taken a dip. During the artificial inflation period the property was sold on price felt by the seller without any relation to the investment vs returns.
Think carefully before investing in Kerala during this Artificial inflation period as the prices are falling drastically. The best way is analysis the place you are going to invest in Kerala and check what happened in this place in the last 20-30 years in terms of development (new buildings, town development, road infrastructure development, entertainments, schools and hospitals) . You will be shocked that nothing much changed in many places in Kerala unlike other states in India
Also remember to check if you can sell the property once purchased in Kerala as the market trend is when you buy it costs a fortune but when you try to sell it there is no buyers in the market to buy it
Some of the key artificial inflation factors where;
1. Airport : Plot near Airport, how many of these investors actually use these Airports. In major countries people move away from the Airport for residential due to noise and security. This was used efficiently as a method to sell property in Kerala. The commercial property in this area makes business sense.
2. Colleges: The major privatization of the higher education has made a large impact on the price of property value which again was artificially introduced by the sellers. The residential investors might have 1-2 kid but why do you need to be so close to the colleges if the infrastructure to reach it is good.
3. The roads: In kerala the major drawback is people don't like to give land for road development but if someone develops a small single line road near the land the property price goes up by 10-20 times. This again is purely artificial inflation method used in Kerala.
Trivandrum Rising - Our city tomorrow and how we can help it develop.: No More National Highways for Kerala!
Reducing national highway width: State hopeful of positive response - The New Indian Express
4. Riverside property: The sale of 5-10 cents near the river in many cases ended up not usable due to building regulations from the council. Again this was used so well during this period to inflate the price
5. The modern age of cars have never been factored into the kerala housing development. If you are staying in a residential house normally in the modern day of both people working there will be 2 cars and no residential houses/flats have parking for 2 vehicle. If you are lucky you will find one parking but to get your car into the parking area you will have to go through such a narrow path that it is unbelievable and if you manage to go through it then reversing or taking a turn is impossible.
The widths of vehicle lanes typically vary from 9 feet (2.7 m) to 15 feet (4.6 m) so please check if there is path for 2 vehicle before purchasing any property in Kerala, again you will be shocked that it is not there.
The other major problem in Kerala:
The politician and local business people do not like to see transport infrastructure development due to the impact it has on their personal interest. As an example if there is proper 4 line fast roads in Kerala, the people are not restricted to staying inside the City and they will be able to move in and out of the area of residential lets say 30-40 Km radius away from Kochin in 20-30 minutes which has heavy loss for the local business people and politicians who are trying control this market because people will drive to the nearest city to do their purchases. Look at the other states, they build Golden roads, this did not happen in India due to politicians and people working against it to protect their interests.CommentQuote0Flag
- Originally Posted by KevinA Khajeej Times Report on 24th November, 2007 says, Malayalee Realtors India Pvt. Limited (Maa), a leading property company promoted by prominent NRIs from the Gulf and the US, is developing a state-of-the-art township in Kochi.
Spread over 55 acres of prime land near Kochi International Airport and the Smart City project, the self-contained township — Smart Village — will feature 1,668 housing units, including luxury villas, row houses and apartment complexes in the first phase. The construction of this phase is to begin next month, said B. Sreekumar, a director of the company, who is based in Dubai.
"In the second phase of the project, which is on the drawing board, Maa proposes to construct healthcare, educational and technology complexes, in addition 10 acres of Ayurvedic herbal garden in line with the company's vision to provide quality living units and modern infrastructure in an eco-friendly setting," Sreekumar said.
Sabu Karikkassery, Chairman of Maa said his company is pondering a joint venture with foreign investment companies to develop and promote the township. The second phase will focus on buildings suitable to the IT industry.
He said Kochi's property sector is poised to sustain the current vibrancy and growth given the predicted population growth and economic developments. By 2011, the city's cosmopolitan population is projected to grow seven per cent. "Apart from the Smart City project, which promises to transform the city dramatically, the city has several other mega projects under way including the container transshipment terminal being developed by Dubai Ports World, Sobha Hi-Tech City in Maradu.
He said real estate prices have gone up by 25 per cent over the past one year. The increasingly high cost of property in the city is driving many buyers to the suburbs. "With city becoming more and more congested with heavy traffic movement, deamnd for proeprties on the city outskirts is on the upswing," a property analyst said.
The first phase of the Smart Village was launched in 2006 by former Maharaja of Travancore, Uthradom Thirunal Marthanda Varma.
The promoters of the company, which is committed to facilitating quality living and infrastructure development, mostly comprise members of World Malayalee Council, said Karikkassery.
Do anybody know the progress or fate of this project?
Sobha hitech city is not yet started
- Donnt get carried away by these off plan projects. Nothing has taken shapeCommentQuote0Flag