Thiruvananthapuram is the capital of Kerala and as such is a prominent city with many important offices and administrative entities. This is one reason why there is a heavy demand for flats in Trivandrum. It is also home to several medium-scale industries under various sectors like central, state, cooperative, private, etc. Oil mills, rubber industrial units, cashew factories, printing units, general engineering units, and handicrafts are the major industries in Trivandrum. There are several government establishments and industrial estates that help industries to develop. Of late, the IT industry is an emerging sector that is doing very well in terms of new companies being set up, and their export earnings. Thiruvananthapuram also attracts thousands of tourists thanks to the many temples, places of natural beauty, beaches, and historical monuments that are present. Thanks to the flourishing commerce and business, many professionals and entrepreneurs are flocking to Thiruvananthapuram. Builders in Trivandrum are capitalizing on the need for housing, and have begun numerous residential projects to fulfill the demand.
Being the state capital, the city has excellent infrastructure like highways, broad feeder roads, an international airport, reliable public transport, a port, exceptional medical facilities, reputed educational institutions, and markets in every locality that provide essentials and luxuries. Thiruvananthapuram is connected to all the major and several minor cities in India by road, rail, and air. It is also connected to international destinations by air.
The city has been experiencing steady economic growth, and there is no doubt that the growth trajectory is on the rise.
Why Invest in Thiruvananthapuram Real Estate?
As mentioned above, the employment opportunities in Thiruvananthapuram have significantly increased thanks to the emergence of the city as an IT hub. The Technopark was established to help the development of the IT sector and was the first of its kind in India. More than 35,000 professionals work in dozens of companies in the park, which earns precious forex for the country through its software exports.
This has spurred the demand for quality housing facilities in the city, as more startups are drawn to the facilities provided here, bringing with them hundreds of new professionals.
We have already seen that the transport infrastructure is excellent. Within the city, road connectivity is excellent, and there are public and private buses that ply to all corners of the city. For those living a little far off, the local train services provide a convenient commute.
The prosperity brought in by the new businesses, industries, and IT companies has given rise to a higher demand for superior housing facilities with modern amenities. Most young professionals and families prefer staying in apartment buildings thanks to the higher level of security, comfort, and convenience offered by them. Several new real estate projects have come up in Thiruvananthapuram, and many more are in the process of completion.
This is the ideal time for you to purchase flats in Thiruvananthapuram, whether you want to use it for yourself or as an investment.
Top Localities for Residential Investment
Let’s take a look at the top residential areas in Trivandrum to invest in real estate:
Sreekaryam, Trivandrum
Located just 11 km from the Thiruvananthapuram Central Railway station, Sreekaryam is a popular locality thanks to its green and tranquil surroundings. It is home to the famous College of Engineering, and is on the NH 66 which goes up to Mumbai. Educational institutions hospitals, markets, and shopping options are available in plenty for the residents of Sreekaryam. The region is the perfect mix of urban bustle and nature’s bounty. There are several notable real estate projects in this area, especially Varma Sreekaryam which has premium 2 and 3 BHK flats with all the modern amenities one can expect in a world-class building.
Kazhakkoottam, Trivandrum
Kazhakoottam is one of the most important suburbs in Thiruvananthapuram. It has the largest IT park in India, and an integrated IT township is in the works; this has earned it the sobriquet of the IT capital of Kerala, and one of the most rapidly developing areas of Thiruvananthapuram, and even of Kerala. It is also famous for the Kazhakuttom Mahadeva Temple built by King Marthanda Varma, nearly 1000 years ago. A major junction on NH 66, it is just 14 km away from the International Airport, and is well-connected by railway, having its own station. Kazhakkoottam is also home to several major institutes, and is close to Thumba Beach, the Space Centre Musuem, tourist villages, and other ancient places of worship. Notable schools like the Sainik School, huge malls selling global and national brands, and state-of-the-art hospitals can also be found here. Little wonder then, that many real estate developers choose this area for their projects. One of the best is Varma Suburban, with premium 2 and 3 BHK apartments that boast superlative amenities.
Poojappura, Trivandrum
The locality gets its name from the fact that it was where the King of Travancore came to conduct pooja, or worship, during the Navratri festival. Located in south-east Thiruvananthapuram, it is home to some prestigious government institutions, and also happens to be the hometown of several notable figures from the Malayalam film industry. The central jail, built during the times of the British Raj, is also located in Poojappura. The region has a lot of vast green spaces and is relatively peaceful though not very far from the city bustle. It’s an ideal place for families to settle down. Varma Homes offers two prestigious projects here: Varma Dr Pai’s Legacy, and Varma Dr Pai’s Heritage. 2 and 3 BHK luxury apartments are up for grabs in these buildings, with every possible convenience and facility one could think of.
Investment Considerations
Being the capital city, there is always a fairly large police presence in all parts of the city; this means more security for the residents. With all government offices being located here, there is always some movement and hubbub; this makes it relatively safe for people to move about even at night.
The best places to invest in real estate are the newly emerging areas that we have discussed above; the ever-expanding IT industry in the city has made it desirable for people to live as close to the IT hubs like the technoparks and IT parks as possible.
RERA or the Real Estate Regulatory Authority was constituted under the 2016 Act, Real Estate (Regulation and Development) to regulate the industry, protect home buyers, and promote investments in real estate in a transparent and fair manner. You could say it is a watchdog that will not allow unfair practices by real estate developers or agents; this should come as a relief to investors and home buyers, as you can be sure that you will not be cheated.
Stamp duty is imposed by the State Government when there is a sale of property. Registration charges are imposed as well when the property is registered in the name of the buyer. You should familiarize yourself with the stamp duty and registration charges. It usually amounts to 2% of the property value for stamp duty, and 8% is the registration charge levied. However, you should check with the relevant authorities for the exact rates.
Market Trends and Forecast
Current real estate trends in Thiruvananthapuram
It is crucial that you are abreast of real estate market trends in Trivandrum before you invest in it.
- Demand for residential properties is steadily increasing with the rise in economic development
- There is an increasing demand for apartments thanks to the safety and convenience they offer
- People are more environmentally conscious and look for sustainable projects that use eco-friendly construction methods and provide similar amenities
- Locations near IT companies and IT parks are preferred
- Proximity to transportation, markets, healthcare, and educational institutions is a bonus
- More people are showing an interest in home automation and smart home technology
- Government initiatives for affordable housing has pushed the demand for such living spaces too
Future developments and their impact on the market
We have already seen that a number of infrastructure projects are in the pipeline and moves are afoot to make Thiruvananthapuram a smart city. The presence of a number of IT parks and government initiatives for startups are fuelling the growth of the IT industry, pushing the demand for housing, with more professionals and families moving to the city.
- Comparative analysis of residential real estate growth
Residential vs. Other Asset Classes
Residential Real Estate is relatively low risk as an investment as it is tangible and stable in nature, though it can be impacted by factors like general economic conditions, market demand, and location. It is not a liquid asset – selling can take months or even years. Volatility is also comparatively low. Real estate in Kerala has been on an upward trend, appreciating steadily over time.
Many consider gold a safe asset as it has intrinsic value, and can be used in times of economic instability, and inflation. It’s highly liquid, and also highly volatile, as many external factors influence it. Returns are unpredictable – there is no guarantee that the value will steadily appreciate. Gold is often an emotional investment.
Bonds are considered low risk as they are government-issued. They are moderately liquid, and are not very volatile; they normally provide predictable and steady returns at a fixed rate of interest.
Commercial Real Estate is slightly riskier than residential as many external factors can influence price and returns, and they are less liquid and more volatile than residential properties. However, the returns are higher.
Stocks are the riskiest asset, and most volatile, but are also highly liquid as they are traded on the stock market; they can also deliver very high returns in the long term.
Each asset has its own pros and cons, and hence it makes sense to diversify your portfolio to spread your risks and maximize returns. Individual risk tolerance, availability of funds, and local market dynamics must also be considered before making a decision.
How to Invest in Thiruvananthapuram Real Estate
Define Your Budget and Investment Goals:
How much can you shell out? Are you looking for quick gains, long long-term value appreciation, or do you want to use the property?
Research and Location Assessment:
Check which localities are close to IT hubs or other offices, transportation, highways, healthcare, markets, schools, and whether the area is marked for future development.
Property Search and Due Diligence:
Research the place and the properties thoroughly by talking to agents or online platforms; check if the property you like matches your preferences. Verify that the legal titles are clear and there are no encumbrances.
Budget Allocation and Financing:
If you don’t have the money to buy the property outright, look for financing options from banks and other lending institutions. Compare tenures, interest rates, preclosure charges, and other terms.
Legal Documentation and RERA Verification
Once all the above steps are completed, make sure the documents are legal and genuine – scrutinize tax receipts, title deeds, local approvals etc thoroughly, and make sure everything meets the compliance requirements of RERA.
Negotiation and Purchase Agreement:
Once you’ve chosen the property, negotiate terms and price with the seller, and draft an iron-clad agreement; seek legal help and make sure your interests are protected.
Registration and Stamp Duty:
Complete the registration formalities and pay the fees as per the requirements at the sub-registrar’s office.
Once all this is done, ensure that the ownership has been transferred to you in the local records. You may want to spruce up the property if you want to give it out on rent. Engage with brokers or go online to acquire tenants and draw up a thorough agreement with them.
Final Thoughts
Thiruvananthapuram is on an unstoppable growth trajectory. It is the state capital, and that itself is enough to bring in people, thanks to all the offices. Additionally, dozens of cultural, scientific, and educational institutions and organizations are present in the state. And the IT industry is expanding like there’s no tomorrow.
The demand for real estate, both residential and commercial, is skyrocketing – even the sky is not the limit as of now.
The scope for growth and high returns in Thiruvananthapuram real estate is boundless. It is the right time to invest in this market if you are looking to make a good profit, whether in the short or long run. Invest in a flat in Trivandrum now, and reap rich rewards in the future.
Frequently Asked Questions
- Which real estate developer can we trust in Thiruvananthapuram?
A: Varma Homes is one of the most reputed builders in Kerala, having delivered superior apartment projects for the last 25 years. They offer premium 2 and 3-BHK flats at highly affordable prices with 0 compromise on quality or the standard of amenities provided.
- Can foreign nationals of Indian origin buy real estate in Thiruvananthapuram?
A: Yes, they can purchase residential property; they are not allowed to hold agricultural land, however.
- What is a sale deed?
A: It is the registered document that transfers the property from the seller to the buyer, and it’s a legal document governed by the Registration Act. PAN Card, Govt. issued ID (Aadhar/passport/driver’s licence etc), a photograph, and address proof have to be submitted while registering the sale deed.
- What is Land Tax?
A: Land tax has to be paid by any person who owns land in his/her name, and the amount is calculated based on the area of land owned.
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