Kochi real estate is going through a consolidation phase
The real estate market of Kochi is going through a consolidation phase. Since a lot of real estate investment in Kochi is done by Non president Indians (NRI’s), project delays and global financial recession damped the real estate sentiment of the city. The city’s real estate market has successfully managed a positive trend with some good decisions including development of IT hub in Kakkanad and central business district (CBD) in Marine Drive region.
Kochi’s real estate market has slowly but surely started a consolidation phase after a sluggish last couple of years. There are a number of well established pan India builders offering world class infrastructure around the city. Kochi also has a number of well reputed domestic builders including Asset Homes Pvt Ltd, Ultima Builders and Developers and Skyline Builders who were the first builders from Kochi to have attained the highest popular CRISIL DA2 rating.
The International Container Trans-shipment Terminal (ICTT) near Port Kochi and the integrated transit terminal of Vyttila Mobility Hub along with the Kochi Metro are sure shot game changers as far as real estate pricing in the city is concerned. The Kochi Metro project which is expected to be operational by 2017 is one of the highly awaited trigger points. Not only is it expected to redefine urban city travel, it is likley to boost the city’s real estate market up on a positive cycle. If conservative estimates are to be believed, the overall real estate across Kochi including Fort Kochi is likely to give returns between 8 to 10 percent on investments made as of today. Since Good urban connectivity is one of the most important factors when it comes to correlating realty prices, the regions with close proximity to the Kochi Metro route would easily give more returns compared to other parts of the city.
Most analysts are quite optimistic about the Kochi real estate market in the medium to long term. The good pace of infrastructural development and IT facilities in Smart city in Kakkanad is not only going to offer jobs in the city but also increase the influx of working professionals boosting the average rental prices.
