Kochi Registers Highest Growth In Property Prices. Should You Invest?
Those who have been closely observing Kochi’s growth as a real estate destination would not be greatly surprised by the fact that this southern city has left behind all metropolitans and some of its key competitors in value appreciation. The Reserve Bank of India House Price Index (HPI) shows Kochi saw property values increasing over 28.8 per cent in the third quarter of the financial year 2018-19 when compared to the same period last year, the highest seen in any city. In contrast, overall rates in 10 key residential markets grew only 4.7 per cent, the HPI shows. Data available with Makaan.com also show rental yield in Kochi has increased 4.10 per cent in the past one year.
What could be behind Kochi’s tremendous rise in times of realty distress?
Some would tell you it has much to do with the Metro network
If you are not already familiar with this fact, the time you got to know Kochi is the first Tier-II city in India that has a running Metro network ─ mind you, the city was chosen over Kerala capital Thiruvananthapuram for the launch of the mass transit project. The Kochi Metro has already been running here for two years now providing better connectivity while working its magic on city real estate, mass transit systems are widely credited for. As work progresses to connect other localities in the city under Phase-II of the project, rates are seen appreciating in areas that would be on the Metro map in the near future.
Some would also link it to the smart city tag
Kochi is among the 99 cities that would be developed under the Centre’s Smart City Mission. Betting on brighter prospects, domestic as well as NRI investors are betting heavily on brand Kochi.
Some others would credit the city’s growth because of its emergence as an IT hub
Exorbitant prices in Bengaluru and Chennai commercial real estate have nudged domestic start-ups and entrepreneurs to look for new and affordable space in the south. Hiring skilled workforce in these two cities where some the world’s biggest IT giants have offices is also comparatively expensive, especially for a start-up.
Just so we are clear, Kochi is the financial capital of a state that boasts 100 per cent literacy rate. What comes handier than Kochi in that case if you plan to start a business? Trend watchers are acutely aware of this opportunity. The four-lakh-square-foot IT park here, Infopark Smart Space Kochi, is their answer to that.
Some others would credit it to the rich NRI
A large part of Kerala’s migrant population lives in the UAE. Since immovable assets are the top choice for Indians, these NRIs like to park their money in real estate back home, fuelling the demand from outside. That is not all. Data available with Makaan.com show Kochi is a preferred destination for NRI investors and not just those who are from Kerala and settled in the UAE. Increasing demand from NRIs is another key reason why rates in Kochi have been consistently increasing.
Planning investment in Kochi?
In case you are planning to invest here, you might consider localities such as Kadavanthra, Elamkulam, Warriyam Road, Kaloor and Maradu. Data available with Makaan.com show these localities have seen highest livability score.
In case you are planning to invest in apartments, you would find a huge variety in terms of pricing. A unit may cost you as less as Rs 15 lakh or as high as over Rs 2 crore, depending on the locality, the unit size, the amenities offered in the project and the builder brand. Currently, there are 970 ready-to-move-in and 524 under-construction projects in Kochi.
Sector biggies such as Tata, DLF, Puravankara and Sobha have projects in the city.