Kochi is a city with a historical significance and known for its tourism. However, the real estate sector of Kochi is equally valuable. Read on to find out:
Kochi or Cochin (as known by many) is the highest densely populated city of Kerala and is an integral part of the extended metropolitan region with a population of 2.1 million. It is classified as B1 grade city which is the highest among all the cities of Kerala. Not only it is more densely populated, it is also the commercial capital of Kerala and the hub for business, trade and economy. The role of Kochi in the development of the state can be understood by the fact that Kochi’s growth (around 14.4 %) is a decisive factor in calculating the GDP of the entire state.
Kochi is connected with all the prominent cities of India by rail and road and is recognised as one of the fastest growing second-tier metro cities. The migration rate of people from other cities to Kochi has increased in the last decade (since the year 2002) owing to better career opportunities in the city. The significant business sectors in Kochi comprise of construction, shipbuilding, manufacturing, transportation or shipping, seafood and spices exports, chemical industries, Information Technology (IT), tourism, health services, and banking.
Real Estate in Kochi:
The scenario of real estate in Kochi is alluring and tempting. The number of real estate enthusiasts have diverted to Kochi to explore a high-potential untapped market. Interestingly, unlike many other famous and developed cities, Kochi offers development in real estate in all sorts of sectors – that is commercial, residential and industrial.
Commercial Real estate:
Since, Kochi’s one of the major revenue sources is tourism (around 20%) and it is a centre of attraction for tourists from all across the world; the hotel industry in Kochi is at its zenith. This beautiful city which is bustling with tourists almost throughout the year caters its guest with a range of hotels. Needless to say, a number of grand hotels and resorts are in construction which supports the commercial real estate of the city.
For the tourists and for the residents, the big names in real estate and construction have jumped in the arena raising malls, institutions and universities.
Industrial Real estate:
Construction and manufacturing in Kochi are being carried out at a massive level and industries have been lined up to get settled in Kochi. More than 250 industries in Kochi manufacture chemical and petrochemical products, pesticides, rare earth elements, rubber processing, chemicals, fertilizers, zinc and chromium compounds and leather products.
Apart from this, it is planned to establish a metro network in Kochi so as to felicitate better transportation services. This has enhanced the property returns in Kochi from 16% to 30% which is almost double. The overall growth is expected to touch 60% very soon.
Residential Real Estate:
Since a number of NRIs prefer staying in Kochi because of the French and Portuguese influence in Kochi’s culture, their need for a well-appointed apartment in Kochi turns advantageous for the residential real estate. Moreover, the areas near the metro stations (as discussed in the previous section) will definitely observe a growth in prices and overall value. To tackle the rising population, township projects have also been planned; however they may take a considerable amount of time to take a physical form.
In a nutshell, Kochi is emerging as an attractive option for real estate investors and buyers. By the year 2020, it is predicted that it will be the next big city of Southern India and would compete with Metropolitan cities like Chennai and highly developed cities like Hyderabad.
Rashmi Walia writes on for 99acres.com, India’s most popular online portal for giving real estate services. Log on to 99acres.com to search apartment in Kochi, House in Coimbatore, etc.