Kochi has been an NRI investment hub of Kerala. Inspite of the influx of real estate investment, there has only been a marginal price appreciation in the past few decades. But with the slated infrastructure development, the real estate industry in Kochi is to witness a sea change.
The financial capital of Kerala, has geared up for the ongoing metro construction. The much awaited Metro Rapid Transit System (MRTS), will ease traffic congestion in the city and suburban areas. Set up with an estimated cost of Rs. 5181 crores, this important infrastructure project is slated to finish by 2016.
The metro will have 22 stations connecting Aluva and Pettah. Kochi has faced rapid urbanisation in the past decade, with a steady growth in population. Although Kochi has been an NRI hotspot, it has been attracting investment from the migrant population of the city. Several new infrastructure projects like the Kochi International Container Transhipment Terminal (ICTT) also known as the Vallarpadam Terminal, launched in 2011, Smart City SEZ (Special Economic Zone) and other upcoming IT Parks at Kakkanad has been developed in the city. This has given a severe push to employment and industries in the region which in turn improved the real estate development around these regions. With the growing IT sector, the demand for apartments in Cochin has also increased.
The city has out-shined its capital city Trivandrum, in terms of growth and development. Since the announcement of the Metro project, the real estate prices witnessed an escalation especially in the suburban areas like Aluva and other key CBD (Central Business Districts) like the Marine Drive in Kochi. With easy access to the surrounding areas of the metropolitan, the major price appreciation is expected to be around the city limits. According to recent reports real estate prices of properties in Kochi are said to appreciate by 10% to 15% in 2014.
Another report by Geojit BNP Paribas Property Services suggests that, within 500 metres of the 22 metro stations the prices appreciation can even go up to 50% in the next few years, leading to the completion of the metro project. Many developers are now looking at Kochi as a viable investment option. As a result the sales volume will also go up in the city.
North Kochi is already witnessing an increase in prices with the commencement of metro work in the region. This infrastructure project will act as a necessary catalyst to boost the economy and real estate in the region, also providing great return of investment to existing property owners.
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