Real estate appreciation in Kerala

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It has been reported that real estate prices in Kochi and neighboring areas have risen by 25% in a year overall and by as much as 50-70% in prime areas. Growth of the IT/ITES sector has been driving up prices particularly in areas near the projected Smart City areas.

The IT/ITES sector has been expanding rapidly in Kochi driving demand for both commercial as well as residential real estate. With a number of major IT MNCs announcing the opening of their offices in Kakkanad (a satellite city of Kochi) the demand for Kochi flats and apartments not to mention land has gone off the roof.

Kochi and Kerala in general is seeing an influx of IT professionals drawn by its proximity to a number of IT Parks. This is driving up real estate prices. A flat in the main cities of Kerala that would have cost approximately Rs.1,500 - Rs.1,700 per sq.ft. a year ago is now going for Rs. 2,500 - Rs. 3,000 per sq.ft.

Thiruvanathapuram the capital of Kerala and Kochi the economic and tourist capital of Kerala are growing rapidly with IT companies and real estate developers attracted by their proximity to the IT Parks. A number of reputed builders have recently announced a string of residential and commercial complexes in these areas.

Other areas seeing real estate appreciation in Kerala include Thrissur, and the number of satellite cities around the Kochi city perimeter. Unfortunately, infrastructure development has however not kept pace with the frenetic residential and commercial development. However, all attempts are being made by the government to achieve this overall development. The winds of change are already blowing and there is cause to be optimistic.