The real estate scenario in Kerala has witnessed many tumultuous changes; it has seen both the booming money making phase and the low stake burden phase, through which it has evolved to the present day, when it is working its way back to the top. It is evolving at a slower pace than usual but is still progressing, surely and steadily. The state of Kerala is recovering rapidly from the recent havoc wreaked by floods, and the real estate business is bouncing back quite well in this regard. The year 2019 poses challenges and risks, but it hopefully holds more opportunities and investment potential compared to the yesteryear. Once you are ready to invest, it is imperative to look into what the year has to offer. Be it apartment, villas, flats or land, there are some common pointers to look out for when you want to put your money in these long-term assets.
- Area defines the price.
The location of your property is of primal importance. If you are looking for a place of your own, you will go for one that is accessible to basic amenities and travel points. Whereas for an investment, the best choices are the properties near employment hubs and areas where the land prices are cheaper. Kochi, for example, has been growing rapidly with the InfoPark bringing in a large section of working class. The advent of Metro rail and other developmental projects has fostered Kochi as a hotspot for investments, due to which apartment prices are skyrocketing in these areas. The area is also a hub for tourism, and international trading has its footprints set in this happening city. IT industries have also set their base here due to ease of doing business and lower costs. It’s a win-win situation for all as this also means that a higher percentage of the population is looking for residences. Kozhikode, on the other hand, attracts homeowners as it has a major share of people bringing in revenues from the Middle East. With a steady and thriving expat population, investments in these parts are doing very well especially in the luxurious property domain. The city’s proximity to IT hubs like Bangalore and Mysuru along with various developmental projects elevates the demand for real estate in these areas.
Be it an apartment or home, closeness to centers of travel and business is essential to maintain seamless connectivity. People are looking forward to invest in areas closer to places of employment and major transportation arteries, which are, at the same time, neatly tucked away from the stress and bustle of the city. Connectivity by rail and bus is an essential deciding factor when it comes to investing. The state’s amicable climate and higher safety rates for residents compared to other states are also factors that check the boxes for families looking for new homes.
- Resale or rental returns
There is a rising trend among big investors to invest their money in huge and profitable projects that ensure the return of the principal within a short span through rental returns. These are viable and highly profitable schemes for those who can invest a solid sum, looking to earn back the money plus good profits in a given span of time. Builders use different schemes to sort out the initial cost of building by a share system among potential partners or by dividing the sum to be paid at each step of construction. Be sure to check back on the background and reputation of the builder to not fall prey to scams and unreliable schemes that can put your money at grave risk. Other than the local players, investors from abroad, mostly the Middle East, are also poised to set foot in Kerala. After the unprecedented floods that swept through the state, investors are cautious about the location and possible flooding situations that can probably occur in the area. Once a favorite among buyers, the river view has slightly dimmed in sheen with investors opting for high grounds away from flood plains. With adequate safety features and strong building in place, this shouldn’t bring down the market for such properties too much.
- Luxury retail market
Kerala is witnessing the spur of luxury villas and apartments, a trend that wasn’t so rapidly catching on until a few years. Sprawling gardens, lavish poolside and rooftop gardens have become synonymous with the upper class of real estates properties. Smart homes and designer villas are fast catching up with the affluent community. This has also upped the standards of moderate apartments with common facilities like in house gym, play area and other amenities. Fuel-efficient homes, green concepts, smart homes, and environmental friendly homes and apartments are the features that the new generation is keen on investing in. Exclusive services and value-added products at homes are the latest trends in the real estate realm since competitors are looking out for every new innovation to add value to their property.
- Home loan
The economic environment is also developing to be very conducive for prospective buyers. Home loan schemes attained with ease from banks at lowered interest rates are a sure-fire business enhancer. Developers can also avail various schemes conveniently without having blockages in the building process due to processing delays. For a trusted and reputed builder, funding for his projects and getting bookings way before completion is pretty much a sure gamble.
- Residential or Commercial spaces
Residential spaces have a decent number of takers in our part of the country but it is the commercial spaces that find the bulk of investors. Warehouses, commercial rooms and buildings have been selling really well this past year. The year 2019 is one that can aim for high investments in the real estate sector, in both business and homes alike. The city, still stepping up from the disaster that struck a couple months back, will soon be on the fast track to being one of the real estate hubs of the country. Kerala has time and again showcased its potential to be a major real estate hotspot, given its developmental initiatives, home loan schemes and ease of investment.