Kochi prefers roomier homes, apts above 110 sq.m became 79% pricier

THIRUVANANTHAPURAM /Kochi: Apartments above 110 sq.m (1,184 sq.ft) became pricier by 79% in Kochi in eight years (2013-2021) while Trivandrum recorded a higher increase in carpet area price than Kochi for apartments between 60sq.m- 110sq.m during the same period, as per a study report by the Gulati Institute of Finance and Taxation submitted to the Kerala Real Estate Regulatory Authority on Wednesday.
The increase in price of carpet area for apartments up to 60sq.m and those above 110sq.m was higher in Kochi than in Trivandrum between 2013 and 2021.
In the middle segment, Trivandrum's price rose from Rs 3,924 per sq.ft to Rs 6,068 sq.ft recording an increase of 86% in eight years. In Kochi, the increase in price was 54%.
Disparity in choices of purchasing community, nature of preference, comparative cost of building materials account for Trivandrum's growth in carpet area price in this category, according to industry specialists.
"There has been a decline in launches in this category (between 600-1000 sq.ft) in Kochi. The purchasing group comprises people who belong mostly to the business community or those who stay abroad. They have been preferring largely spacious residential spaces within good communities. Major players always concentrate on segments well above 1,500 sq.ft in Kochi. We have had personal experiences when our clients initially opted for 2bhk and then would request us to dispose of it so that they could buy a 3bhk," said Siby George, director, Kerala Realty and treasurer of Kerala Realtors Association.
Capital gains in terms of rental income from initial investment is also a major factor. "In Kochi, the preference is for water front properties with airy buildings and a good number of rooms. People who are abroad buy properties as a retirement option. Even in terms of rental income, properties with higher dimensions would yield good rental income which would yield about 3% interest on investment," said Naveen John Puthoor, secretary, Kerala Realtors Association.
Both Trivandrum and Kochi had recorded a nominal dip in price of carpet area in the segment 60-110sq.m in 2018, a year when Kerala was ravaged by the flood. Trivandrum has always witnessed a preference for housing in core areas irrespective of the dimensions which reflects in higher price growth, opine realtors.
"Be it government employees or IT professionals, who move to Trivandrum as a family, opt for 2bhks between 700-1,200 sq.ft in areas that are closer to office or schools. Land price is always high in these areas since it forms the core of the city. This reflects the high price range for this segment," said Rajesh Mohan, president, Trivandrum Realtors Association.
According to Sethunath M, CEO of CREDAI Kerala, there are not many takers for small-single room apartments in Kochi, when compared to Thiruvananthapuram.
"Major real estate firms in Kochi are not investing in small projects below 1,500sq.ft area. They mainly focus on the apartments and villas with more than 2,000sq.ft area. In Thiruvananthapuram, the number of IT firms are higher than in Kochi and naturally, the demand for small apartments and studio apartments would be high there," he said.