Kochi is one of the most sought-after property market among Indians and NRIs and irrespective of the dull real estate market, property prices in Kochi have shown double digit growth.

Property prices in Kochi grew by 12.8 per cent in the October-December quarter of 2017. The average capital values across the major micro markets of Kochi, which was below Rs 4,000 per sq feet till recently, has now reached Rs 5,000 per sq feet.

Why is Kochi’s real estate market performing better?
There is a general perception that owing to the fact that Kochi residents are primarily employed in the Gulf, the surplus money has been able to transform the city into a coveted metro city. An estimation suggests that one-fourth of the home buyers in the city are expat professionals hence boosting the luxury segment and multiple property investments.

Commercial growth
Kochi is growing commercially and it’s tourism and international trade is on an all-time high. The IT sector has also ventured into Kochi due to the lower costs and friendly climatic conditions. As a result, the demand for quality office spaces, hotels, retail outlets and residential apartments has increased over the years.

The factors that have boosted Kochi’s property market
Kochi has significantly emerged as one of the key commercial and industrial hubs of Kerala, making it a profitable investment option for Indians and non-resident Indians (NRIs) alike. Also, Kochi has seen remarkable infrastructure development, with access to world class healthcare and educational facilities, making it the city that it has become now.

Also, Kochi is the only city in Kerala with metro rail connectivity and a container terminal to facilitates international trade. To top it up, major IT parks, like Kochi Infopark and SmartCity at Kakkanad, have transformed the city into a key IT hub, bringing in more people for jobs and hence increasing the demand of residential homes.

The IT sector and Landmark initiatives
Kochi’s landmark infrastructure initiatives, and government initiatives like single window clearance and concessional power tariff, have been instrumental in driving up property prices in the city. The Kochi Metro has also provided a welcome boost to the realty market.

The healthy growth in the IT sector has ensured that Grade A office stock expanded from less than five million sq ft in 2012 to 10 million sq ft in 2017, resulting in an increase in residential prices. The city has three primary markets – Marine Drive, Kakkanad and Edapally, out of which Kakkanad has emerged as a prominent IT corridor. 90 per cent of the IT developments are envisaged along this corridor.

Educational institutions and medical facilities
The mushrooming educational institutions and medical facilities across the city have led to a constant flow of migration into Kochi, from other areas of Kerala and other neighbouring states, making it a densely populated city. There are also plans to transform Infopark into one of the major IT parks in the country. Established in 2004, it has already attracted investments from IT majors like TCS, Wipro, Affiliated Computer Services, OPI Global, IBS Software Services and US Technology. The IT majors and MNCs in Kakkanad, have also led to a surge in housing development in and around Kakkanad. In a nutshell, there are multiple demand drivers that have led to the growth of the real estate market in Kochi and not just the Gulf money.

Kochi’s USPs
Booming tourism and international trade.
Inclusion in the first 20 Smart Cities.
First tier-2 city to have a metro rail.
Proliferation of educational institutions and medical facilities.
Healthy investment from NRIs.

Some statistics:
Number of properties listed in Kochi - 288
Property prices in Kochi start from - Rs. 1.80 lakhs
Average price of properties in Kochi - Rs. 77.84 lakhs
Most expensive property listed in Kochi - priced at Rs. 6.65 crore
Number of localities in Kochi showing an upward trend - 13
Numbers of localities in Kochi showing a downward trend - 7

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The figures are taken from one source and may vary from source to source. Members are more than welcome to give their real time inputs.
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