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July 2024

Top 5 Areas to Buy Property in Kochi

If you are planning to make a residential purchase in Kerala, Kochi offers some of the finest opportunities. Known for its trade, commerce, infrastructure developments, and scenic views, Kochi is poised for immense growth. The real estate market here is gaining momentum. Kochi, formerly Cochin, is the food capital of Kerala, located on the scenic Malabar Coast. In 2018, the city topped the list of emerging megacities in India by Jones Lang LaSalle (JLL). In recent years, Kochi has been witnessing significant development in various sectors, including real estate. Prominent developers and investors, both national and international, are investing in the city’s promising future.

If you wish to buy a property and capitalize on Kochi’s growth, now is the time. Here are the top areas in Kochi to buy a residential property:

1. Kakkanad

Kakkanad is a well-developed locale strategically positioned along SH-41 and connected via major roads like Infopark Road, NH-66, and NH-544. The presence of the city’s prominent employment hubs, such as Cochin SEZ and KINFRA Industrial Park, drives housing demand in Kakkanad. Home prices average around Rs 5,350 per sq ft and are expected to increase with a dedicated metro station planned on the Pink Line of Kochi Metro. The area has seen a property price growth of over 26 percent in the past five years. Kakkanad’s residents appreciate the availability of public transport and safety, giving it a 4.3 rating out of five on the 99acres Ratings and Reviews platform.

2. Aluva

Situated along the banks of the Periyar River, Aluva is a major transportation hub in the Kochi metropolitan area. It boasts proximity to Aluva Metro Station, Railway Station, and Cochin International Airport, located 11 km away. Home prices in Aluva are around Rs 4,450 per sq ft. The locale’s rental units are popular among students of nearby colleges. Residents rated Aluva 4.2 out of five, citing its excellent connectivity via various modes of transport. However, waterlogging during monsoons and traffic congestion are noted issues.

3. Vytilla

Vytilla is one of the largest and busiest intersections in Kochi’s road network, with premium housing options starting at Rs 7,450 per sq ft. The area is well-connected, with a dedicated station on Kochi Metro Line 1 and proximity to NH-66 and Ernakulam Junction. Vytilla has seen a price hike of 41 percent in the last five years. Residents praise its public transportation, access to hospitals, educational institutes, and markets, earning it a 4.2 rating out of five on the 99acres Ratings and Reviews platform.

4. Kaloor

Kaloor is a residential cum commercial hub in the heart of Kochi, with connectivity via NH-66 and Kaloor Metro Station. Home prices in Kaloor are around Rs 8,250 per sq ft. The area has experienced up to 57 percent price growth in the last five years. Kaloor hosts several premium societies and offers excellent connectivity and well-maintained roads. Residents rated it a solid four out of five on the 99acres Ratings and Reviews platform.

5. Tripunithura

A major satellite township in the east of Kochi, Tripunithura offers a premium living experience with independent houses, residential plots, and upscale apartments. Home prices in Tripunithura hover around Rs 4,950 per sq ft. The area benefits from connectivity via NH-85, SH-15, and Petta Metro Station. Tripunithura has seen over 15 percent rise in property prices in the last five years. It boasts sound civic and social infrastructure, with educational centers, malls, and recreational hubs nearby. Residents rated Tripunithura 4.2 out of five on the 99acres Ratings and Reviews platform.

Investing in Kochi’s real estate can yield significant returns given the city’s rapid growth and development. These top areas offer promising opportunities for both investors and homebuyers.

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Kochi’s Market Growth and Investment Shifts.

As Kochi continues to grow, I foresee a significant shift in market focus toward tourism, positioning it as a key player.

Investment in rental properties will appreciate only if these properties are flexible enough to yield high rental returns. In Kerala, particularly, investors are showing declining interest in residential properties such as villa communities and residential complexes. The dynamics of residential associations often pose challenges for maximizing rental returns, creating a red flag for investors.

With the increasing popularity of daily rental platforms like Airbnb and the growing demand for standardized short-term accommodations, tourism-driven rental properties are becoming more attractive. These properties offer better occupancy rates and higher returns, aligning with the global trend toward flexible, high-yield investments in tourism.

Given the current development trends, l predict an accumulation of unsold residential inventory over the next decade. This doesn’t imply market instability but rather a stable value trajectory. However, potential investors are likely to seek alternative investments that offer greater flexibility and higher yield prospects.