Real estate prices set to rise

After the impact of SmartCity on the real estate sector, developers are now looking at ‘Kochi Metro’ and ‘Emerging Kerala’ for a possible spurt in property prices.

 The prices in the sector are expected to increase by 10-15 per cent in the coming months and there might be a 20 per cent increase by Onam, industry sources said.

 According to Joseph Nivin, managing director, Nivin Builders and Developers Pvt Ltd, real estate players are hopeful of a possible spurt in the land and property prices near the 22 Kochi Metro stations.

 “Developers have started to acquire land around the Kochi Metro stations.

 More and more projects may land at these places,” he said.

 After the NRI driven market, Kerala’s real estate market is slowly turning in favour of the working class.

 Kochi Metro will add fuel to this trend and also to the affordable housing segment.

 “Real Estate sector in Kerala is getting matured.

 Actual buyers are coming to the market now.

 Any entrepreneurial effort from the government is appreciable and it will have a positive impact on the sector,” said K A Mohamed Saleem, Managing Director, Asset Homes.

 Generally, real estate gives 100 per cent return in five years, he added.

 As of now, there is high demand for commercial properties in the state.

 Affordable housing segment is also gaining momentum.

 Malls like Abad Nucleus at Maradu are selling individual shops, which is seen as a new trend in the real estate sector.

 Rental return and price appreciation are the attractions that malls offer investors.

 With the number of malls on the rise, it is likely that this investment option will gather momentum in the coming days.

 “Building rules which were amended three years ago, is the main reason behind the collapse of real estate sector in the state.

 Because of over supply, 40 per cent of residential properties have not been sold.

 In 2008, 10 new projects were announced in a month but now only one new project is announced in six months,” said S N Raghuchandran Nair, Secretary General, Confederation of Real Estate Developers’ Associations of India, Kerala.

 However, he said that the situation is changing.

 In Thiruvananthapuram, the most happening place in real estate in the state, the property prices have doubled in 4 years.

 Outside city limit, the growth rate is only 15-20 per cent because of poor infrastructure, he added.

 There are reports that healthcare major Fortis, which has plans to open it’s own hospital, has not got a suitable place so far, so is the case with Pantaloons.