Important Factors To Consider While Investing In Real Estate In Kochi

Posted onMay 05, 2024

It’s a great time for the real estate market in India; if you’re thinking of which location you should invest, take a look at Kochi. The city is the commercial capital of Kochi and a major naval base. 

Let’s see the reasons why you should invest in Kochi:

Booming Economy

Kochi’s economy has been exponentially growing for the past few years. It is home to a number of industries, and a major hub for the IT sector. The presence of the naval base adds to the employment opportunities. Several multinational companies have their offices and headquarters here too. Investing in property in a city that is showing a rapid development trend can bring you rich dividends. Here are some major factors contributing to Kochi’s economy:

Smart City Initiative

The state government is collaborating with an international investment management company called Dubai Holdings to turn Kochi into a smart city. The ambitious project aims to transform Kochi into an attractive business hub for international companies, which means innumerable opportunities will open up for both entrepreneurs and labour - skilled and unskilled. This means that future opportunities for development in Kochi are almost limitless.

Tourism

Kochi is a stunning mix of natural beauty, rich cultural heritage, and bustling modernity. From sun kissed beaches to serene temples, from traditional mansions and palaces to futuristic malls, from historical monuments to fun-filled amusement parks, Kochi has something for everyone. Tourism is a major contributor to the economy of the city, as thousands of domestic and foreign visitors throng the city to experience its gems.

Infrastructure 

The city boasts a number of IT parks with excellent facilities, incubators, business parks, and Special Economic Zones, all aimed at helping startups and small businesses. These receive government funding, subsidies, resources, and training. There is excellent road connectivity within the city and to other cities not just in Kerala but other states in India through highways and arterial road networks. Kochi also boasts world-class residential spaces throughout the city that feature top-notch amenities. The metro provides mass transit and reduces commute time for residents; it connects the major residential areas of Kochi like Palarivattom, Edappally, Kadavanthra, Vyttila Tripunithura. In addition, Kochi is also connected to the rest of India by rail and the world by air through the international airport.

Medical Infrastructure

Kochi is reputed for its world-class hospitals with highly qualified and experienced doctors and sophisticated equipment to treat patients at reasonable charges. Medical tourism is a big industry in Kochi. Not just hospitals but ancillary services like pharmacies, diagnostic centres, restaurants, and home stays and other medium-term accommodation facilities also do well.

Education

Kochi has some of the best schools in the state, with IGCSE, CBSE, IC, and State Syllabi. There are also a number of colleges, professional colleges, vocational training institutes, and so on. Educational facilities in the city can rival those in any major metro city in India.

Excellent ROI

When a city has great infrastructure, rapid economic growth, excellent medical and educational facilities, you can be sure that it will attract people to the city. This includes those who want to migrate permanently, and a large floating population. In any case, it means heave demand for residential spaces. Here are some real estate investment strategies in Kochi  that can help you get high returns:

• Steady monthly income from rent
• Reselling property for a huge profit
• Buying undervalued properties, renovating, and selling them.
• Investing in REITs
• Buy, Rehabilitate, Rent, Refinance, Repeat strategy

You can be assured that the demand for real estate in Kochi will not come down any time soon.

Conclusion

Now that you have seen what factors you need to keep in mind when you think about Kochi as a real-estate investment destination, the next step is to find the right developer. Varma Homes is a reputed builder with successful, high-quality projects all over Kerala. Check out their apartments in the best areas of Kochi and experience a whole new way of living.

FAQs

What are the key economic factors that make Kochi an attractive city for real estate investment?

Kochi is experiencing rapid economic growth, fueled by diverse industries including IT and tourism. The city's Smart City Initiative, spearheaded by the state government in collaboration with Dubai Holdings, aims to transform Kochi into a global business hub, promising future development and investment opportunities. The robust economy, combined with the presence of multinational companies and a major naval base, makes Kochi an appealing option for real estate investors.

How does Kochi's infrastructure enhance its real estate market?

Kochi boasts extensive infrastructure developments such as IT parks, business parks, Special Economic Zones, and excellent road connectivity. The Kochi Metro enhances commuting options, connecting major residential areas and reducing travel time across the city. Such comprehensive infrastructure not only supports existing residents but also attracts new businesses and residents, bolstering demand for real estate.

Can you elaborate on the role of tourism in boosting Kochi's real estate market?

Tourism is a significant economic driver in Kochi, with the city's blend of natural beauty, cultural heritage, and modern attractions drawing both domestic and international visitors. This influx supports various sectors including hospitality, retail, and residential real estate, as tourists and new businesses seek accommodation and services, thereby stimulating the local real estate market.

What are some effective real estate investment strategies in Kochi?

Investors in Kochi's real estate market can consider several strategies to maximise returns, such as earning steady rental income, reselling properties for profit, and buying and renovating undervalued properties. Other approaches include investing in Real Estate Investment Trusts (REITs) and employing the Buy, Rehabilitate, Rent, Refinance, Repeat (BRRRR) strategy. These methods leverage Kochi's high demand for residential spaces and its ongoing growth in various sectors.