5 Reasons why Kochi will be the next hotspot for realty investors

As the commercial capital of Kerala, Kochi already enjoys a reputation as a vibrant and cosmopolitan city of south India and is a leading Tier II city today along with the likes of Nashik, Baroda and Goa.

From a realty perspective, the Kochi market might appear to be small and insignificant but with most major cities reeling under a slump today, its Tier II cities like Kochi that are expected to be the target of the next big investment boom.

Here’s a look at the five key factors that make Kochi an attractive destination for realty investors looking at options across Tier II cities today.

Kochi Metro
The first 25-km long stretch connecting Aluva and Petta is expected to become operational later this year. The Metro will also link other important destinations along the way including: Companypady, Ambattukavu, Kalamassery, Edapally, Palarivatom, Ernakulam South and Elamkulam among others.

The coming of the Metro has already boosted Kochi’s realty prospects in a big way with property prices along the Metro corridor on their way up, making it an attractive proposition or investors. 

Smart City Tag
The state is already making serious attempts to transform Kochi into a Smart City under the 100 Smart Cities initiative. Plans include setting up of an IT SEZ at Kakannad in Kochi which is likely to generate employment opportunities for an estimated 90,000 people.

Expanding the job market is likely to attract more investors to Kochi’s real estate to leverage the city’s growing importance as an IT hub.
 
Rise of the micro markets
Already fast developing areas like Edapally Bypass are gaining a reputation as a retail hub with a number of shopping malls under various of construction.  Elsewhere upcoming suburban locations including Kadavanthara, Palarivattom, Edapally, Vytilla and Panampilly Nagar are experiencing a development boom with numerous projects across all budgets.

What’s more several other upcoming projects like the SEZ for aircraft related manufacturing units and Vytilla Mobility Hub – which is likely to streamline the city’s traffic, look destined to change the fortunes of Kochi’s rental and capital market drastically.


Well-developed social infrastructure:
While pending connectivity issues are expected to be taken care of by the upcoming Metro, Kochi offers the chance at a quality lifestyle with extremely low pollution levels and a relatively crime-free society. According to experts, given its leisurely lifestyle and calm living, Kochi makes for an excellent destination for senior citizens looking for solitude and younger families looking to invest in a second/holiday home. 

Reasonable Rates:
While realty rates in Kochi have begun the upward climb courtesy many of the initiatives mentioned above, they still remain a lot cheaper than other destinations in the south like Chennai and Coimbatore. With average capital rates hovering in the range of INR 4,000-6,000 psf and approx INR 9,000 psf for upmarket locations, Kochi remains a very affordable destination for both buyers and investors looking for great deals.

So regardless of if you’re a potential investor looking for excellent returns or a buyer looking for a city that ensures a high-quality lifestyle, Kochi is one destination that deserves a closer look.