Kochi – the hotspot for real estate

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Kochi is considered as the queen of the Arabian sea and it is a new hot spot destination for every traveller. Besides traveller there is one other section also that has fixed their eye on Kochi i.e Estate giants. What is so unique about Kochi that attracts almost every property dealer towards it, not only domestic property dealer are showing their interest but also big property dealers especially from the middle east are investing in Kochi.

Many big- big real estate developers like like DLF, Sobha Developers, Ansals, Purvankara, Confident Group, Oceanus, Unitech, Nitesh Estates, Housing Development and Infrastructure (HDIL), Prestige Group, Emaar MGF and Parsvanath Developers have moved upon the Kochi, the financial and industrial capital of Kerala. All of them have invested a big amount in The port city of kochi, collectively they have invested around $2.5 billion during the last 6-8 months.

 

Well known business group from the Middle East that have forayed into kochi are KGA Group of Kuwait, EMKE Group of Abu Dhabi and Indroyal and many of them have also invested in the Hospitality sector to establish a new star luxury Hotels chains.

During the last few months many real estate companies have announced to enter into kochi, around half -a-dozen developers have announced their plans also.If we consider the property prices then the prices of the city have appreciated by around 60% in recent time. Many real estate companies have already acquired huge parcels of land. An industry observer and a former builder said, “Boom of Property development and real estate activities have overshadowed the state’s tourism sector,it has effected the tourism sector. This wave of Industrial development has witnessed the emergence of many developers and projects”.

 

Last year HDIL had announced its plans to set up an IT park at Kalamassery, near Kochi and for that they have already purchased a 70-acre plot from the government-owned HMT. Bseide an IT part, It is also setting up Cybercity in the HMT land, which will have IT space, hospitality, retail and entertainment projects also and the total investment cost in the project is estimated and it it would be around around Rs 2,000 crore.

 

As per the Kerala Builders Forum chairman George E George: “Till a decade ago, only local property dealers were involved in all the real estate activity of each city and everything related to property was driven by local builders only.” After araising the resources through the public issue rout all the bigger players acquired the financial muscle to launch multi-city operations. “Many of them yet lost the chance to deep their roots in chennai and banglore as the rates peaked before their entry,” he said. “But in case of Kochi they entered the right time and spotted the opportunity in Kochi and that has turned a triumph card for them,” he further added.

 

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The largest township in Maradu, Kochi, is being set up by the Sobha Developers which would be very large in size and will be called as the Sobha Hitech City. Maradu is turning into a high-tech suburb of Kochi as many tech companies has found potential in Maradu, Kochi.May tech companies have initiated their projects in Maradu like commercial projects, 5-star hotels, shopping malls and IT projects. The calculated amount of investment in the projects has been estimated around Rs 5,000 crore. Nitesh Shetty,CMD of Bangalore-based real estate firm Nitesh Estates, said that the apparent horizon the port city of Kochi has changed drastically and dramatically over the last few years and infact, it is still on change of good side and if you see Kochi now you will find today it is one of the fastest growing cities in the country. He further added, “ Today every NRI who has settled in abroad want a home in Kochi and I am not talking about few, These NRI’s are large in numbers. The main reason is increasing IT sectors and jobs which offers grand investment opportunities for real estate”. While giving more information he said, “ His company has also acquired 5 acres of land in Kakkanad near Kochi recently”.

 

As they have purchased, the same way, in 2006, India’s real estate giant DLF purchased 3.78 acres in Kochi from the state government for Rs 78 crore. On this 3.78 acres the DLF Group is planning to build a shopping mall, a multiplex and a 250-room deluxe hotel in Kochi. A senior HDIL official said, “ Kochi is ready for a big jump in real estate. The commissioning of Vallarpadom international container terminal and numerous IT parks will make Kochi the preferred destination for highly-paid executives.

 

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According to builders, They are not getting the proper outcome even if all the big builders have been focusing on the land of kochi, the supply is still grossly not sufficient when compared to the potential demand. For example, in the next 3 years, the Infopark alone will create close to 30,000 to 40,000 jobs in Kakkanad, the city’s IT destination. But because of the bad supply if you put together the supply by all the builders would be just 10,000 to 12,000 apartments and if we talk abot the Smart city project , this project is expected to generate nearly 90,000 IT jobs in the next one decade as many IT developing companies are showing their interset and various private developers are also developing IT parks in Kakkanad and nearby locations.