While a considerable number of residents of Kerala reside in foreign countries, real estate in Kochi has always been of interest to the NRI. Lately, the push created by the influx of IT/ITeS-based companies into the property markets has also led to a surge in property prices in Kochi.
A large number of employees are moving to the city and the demand has visibly impacted capital prices and rental values of properties here. Nevertheless, NRIs are not afraid of the same and real estate investment in Kochi is still one of their preferred options, sources have informed.
According to Kochi Property Dealers, most NRIs seek sea-facing residential properties in the city. Perhaps for this reason, the communities around Marine Drive and MG Road are the most upscale residential areas in the city.
However, vacancy rates in these areas are at their lowest and hardly any properties are available for sale. Furthermore, market experts believe that prices are currently too high and do not offer room for further growth from an investment perspective.
Consequently, NRI investors have reportedly shown interest in suburban sites such as Kakkanad, Edappally, Kalamssery, Ankamali and Thripunithura.
Extensive construction activities are underway in these areas, and real estate majors like DLF, Puravankara, Sobha, Prestige and Brigade Group have lined up their ambitious projects in these areas.
Given the demand for high-end residential properties, international players are also eyeing the Kochi property markets. Recently, Dubai-based Emaar Group also launched its project in the city.
Property Values in Kochi
Given the boom in Indian real estate over the past two years, apartment prices at Marine Drive have soared by almost 300%, from Rs 1,500-Rs 2,400 psft to Rs 5,000-Rs 7 000 psft, between 2005 and 2007.
The capital values of apartments located in the aforementioned suburbs range between Rs 1,500 and Rs 4,000 per square foot (Source-MagicBricks.com).
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