Kochi realty prices on an upswing

After a long lull, Kochi is now witnessing a gradual rise in prices of residential properties prominently driven by end users.

Though the demand had started surging more than a year back, initially it did not directly translate into increase in prices because an estimated 500-600 apartments were lying unsold just a year back.

Not only have most of these flats been sold out during the last few months, but based on genuine inquiries and bookings, lots of new schemes are coming up in suburbs such as Edappally, Kakkanad, and Tripunithura areas.

A few new schemes are also coming up in the heart of the city adjacent to the international stadium, Kaloor, as well as on the Manikath Road in Ravipuram. Many builders are also scouting for land for development in other posh areas such as Thevara and Vytilla.

Though there has been only a faint recovery in prices during the last one year, Anil Kumar, marketing manager of Southern Investments, expects the property prices in Kochi to move up significantly during the coming two to three years.

"However, they won't be quite anything like they were ten years ago," he clarifies.

A member of the Kerala Builders Forum said that lately there has been a spurt in the demand for budget apartments in the price range of Rs 400,000 to 15 lakh (Rs 1.5 million) in Kochi.

A number of projects, which were stalled by a few promoters are being revived in the wake of renewed buyer interest.

Builders are on the lookout for vacant land to undertake additional projects, which in itself is an indication of market vibrancy, he added.

A real estate consultant Radhakrishnan Nair attributed this to easy availability of housing loans at low interest rates, improving economic outlook and more and more NRIs investing in real estate because of declining interest rates in fixed deposits.

Though there is no dramatic price rise in the commercial property segment, there is definitely improvement in terms of offtake because of many new companies setting up offices here.

With many new international airlines including Gulf Air, Emirates, Oman Airways, Saudia Airlines setting up base here due to commencement of direct flights to Kochi, the demand for good quality commercial space has been on a rise.

The rentals and prices of commercial property are expected to surge in the coming months as Kochi is increasingly being perceived as an upcoming city and is aggressively being promoted by the state government as an IT destination.

Though currently it does not have many ITES companies of any significance, yet it holds a lot of potential to attract many.

Moreover, Kochi's status as a tourist destination as well as a major venue for big conferences and international events continues to grow.

During the last ten months, about a dozen conferences of national and international importance have been held in the city, with eight of them at the Le Meridian Convention Centre situated in Maradu alone.

The international events included the Global Investors Meet, The World Ayurveda Congress 2002, International Cardiology Conference as well as the Second World Congress of International Energy and Mines Organisation.

And the national-level events included the meet organised by The Travel Agents Association of India, ENT National Conference, The National Neonatology Conference, The Indian Dental Conference.

And slated for the end of this month is the India International Boat Show 2003.