When the top markets were struggling not so long ago, the real estate property prices in Cochin have shown more growth. Below are the factors that fueled this double-digit growth and the city’s best investment destinations.
As per the National Housing Bank RESIDEX, Cochin property prices grew in the fourth quarter of 2017 by 12.8 percent. This came at a time when the ten best property markets in the city were struggling against a likely price correction. Besides, the average capital values across Cochin’s major micro-markets were below 4,000 rupees per square feet. Furthermore, almost all the big developers have launched residential projects in the city.
This then raises the pertinent question of how a tier-2 city, which is cost-conscious, is doing better than established property markets in tier-1 cities and what the real demand drivers of Cochin’s property market are. There is a perception that thanks to the huge number of Cochin residents working in the Middle East, the ‘Gulf money’ transformed this nondescript city to a thriving metropolis. A conservative estimate indicates one-fourth of the homebuyers in Cochin are expats. However, this may be true for only the luxury housing sector.
Nowadays, Cochin is developing commercially, with international trade and tourism booming in the metropolitan city. The IT segment has turned to Cochin, also, owing to the lower cost of conducting business per square feet and a better climate. This is fueling the demand for office spaces, retail outlets, residential apartments, and hotels.
Factors That Boosted Cochin’s Property Market
Cochin has emerged as a major commercial and industrial hub of the state, which makes it a lucrative investment option for both Indians and NRIs. The city has witnessed remarkable infrastructure growth, with access to state of the art educational and healthcare facilities.
This augmented the property demand, particularly in the luxury housing segment. Furthermore, Cochin has the biggest international airport in the state. The demand for quality luxury apartments is quite high in Cochin and there are some developers, which can offer the same. Marine Drive is regarded as a prime real estate area and fine projects along this stretch still command a premium price.
However, if you are even an NRI looking for good investment opportunities, the stock of apartments from the top builders in Kochi will not disappoint you at all. The sector is healthy and competitive enough to further grow in the coming years.