Kochi is the Queen of the Arabian Sea for its natural beauty, scenic views, and rich cultural heritage. It is a top choice for domestic and international tourists and has been ranked sixth among the top tourist destinations of India by Nielson. According to McKinsey Global Institute, Kochi is one of the top 28 Indian cities that will be a part of 440 global cities, making up 50% of the world’s GDP by 2025.

Infrastructure

Kochi has been identified as one of the 20 smart cities by the Ministry of Urban Development, Government of India through a competitive selection process. This means that the city will get a special focus on developing planned and improved infrastructure. The focus will be on E-Governance, water management, power supply, sanitation, solid waste management, efficient urban transportation, and IT

Connectivity.

The city is well connected to the rest of the country and world by air, road, and rail. The domestic and international airports, state and national highways passing through it, and railways give access to all major hubs and cities within the state and country. The network of roads in the city is the principal mode of movement of transport within the city.

Economy

The Kochi Refineries, Kochi Shipping Yard, Eloor Industrial Estate, Kakkanad technological cluster, and the Special Economic Zones are the major hubs for industrial activity in the region. These regions are responsible for major economic development in the city and account for more than 450 IT companies and 250 companies from other industries. The demand for housing and commercial real estate is fuelled by these developments forecasted to keep growing in the future too.

Real Estate Scenario

There are several reasons that the Kochi flats for sale are preferred. The city is rated as one of the safest cities to live in India. The booming IT industry is attracting many professionals to migrate to the city as living in Kochi is affordable. These factors are responsible for the rapid development of the real estate sector.

The builders in Kochi are developing residential and commercial real estate to meet the growing demand. From budget to luxury apartments, independent houses, and villas in Kochi, the home buyer and investor have a range of choices offered by leading developers. Most of the ready-to-occupy flats in Kochi have the best amenities and facilities that meet international standards. 2 and 3 BHK flats in Kochi are the preferred configurations by home buyers and investors.

The pricing for residential homes ranges from ₹2000 to ₹9000 per square feet depending on the locality and type of projects. Some of the major locations are Kakkanad, Edapally, Kaloor, Thevara, Aluva, Panampilly Nagar etc. Kochi is a major hub for real estate and is poised for growth in the coming years.

Kerala has one of the highest numbers of expatriates in the country who live in many parts of the world including the Middle East, Europe, and the Americas. Kerala also has very high remittances from abroad compared to most other regions in India. As the real estate market is booming here, many NRIs are investing to increase their assets and earn lucrative returns. Before investing, there are certain important aspects that the NRI investors should consider.

We will discuss these in this blog.

1. Legalities

The real estate transactions for NRIs fall in FEMA – Foreign Exchange Management Act has laid out the guidelines. As per these, NRIs are allowed to buy and rent property in India and transfer the earnings into their NRO or NRE accounts. NRO and NRE accounts are bank accounts that NRIs are allowed to manage their earnings in India and abroad.

NRIs are allowed to take loans from banks to fund their real estate investments and use rental income to repay these loans. They can repay these loans through the NRI and NRE accounts.

2. Research

NRIs should have an investment plan to make outlining their investment objectives clearly. This will help them decide the quantum of investment and the properties they should invest in. Builders in Kerala offer many options for real estate investments. For instance, Kochi flats for sale fall under the luxury, mid-segment, and affordable category. Investing in properties that meet the goals and objectives of the investor makes more sense than following a blanket rule for investment.

3. Residential and Commercial properties

NRIs can choose to invest in residential or commercial properties depending on their investment objectives. Although commercial properties give higher returns, they are difficult to rent out or sell. Residential properties are easily rented or sold due to rapid urbanization across cities in Kerala that have a high demand for housing. Luxury properties are in demand amongst home buyers as they can afford them due to rising incomes. Renting these out or selling them will earn higher returns for NRIs investing in them. Investing in villas, luxury apartments, and similar properties that have high market value are good options for NRIs. New projects offering flats in Vytilla can yield better returns than those in the older suburbs of Kochi.

4. Locations

Most cities in Kerala are growing at a rapid pace. Cities like Kochi, Trivandrum, and Kozhikode have an ideal balance of urban living and natural surroundings. Choosing to invest in these cities can ensure growth in returns every year. Smaller cities like Thrissur and Kottayam are also good destinations for investing with many luxury properties to choose from. Flats for sale in Thiruvalla can be good options for NRIs who want to retire in the calm areas.

Investment in Kerala can fetch NRIs good returns. They must hire local lawyers specializing in property investments who will help them with the policies and procedures laid out by RBI and the government.

Kochi, the burgeoning Tier II city of India and the economic hub of Kerala is experiencing an unprecedented surge in growth. This boom, fueled by rapid infrastructure and industrial development, has catapulted the real estate market into a realm of immense demand for both residential and commercial properties. With escalating incomes and elevated living standards, the city is witnessing a burgeoning desire for luxury living, making it an alluring destination for investors seeking the perfect fusion of traditional and modern cultural lifestyles.

Let’s delve into some pivotal trends shaping Kochi’s property market:

1. Prime Locations

Flats in Ernakulam are predominantly found in prime locales such as Edappally, Cheranalloor, Providence Road, Kollamkudimugal, Kakkanad, Vyttila, and Kadavanthra. These areas boast elite neighborhoods, waterfront views, and easy access to educational institutions, hospitals, malls, cafes, and restaurants. Additionally, they house some of the city’s premier commercial real estate. The demand for real estate in these areas is high and investments here will yield high returns.

2. Design and Architecture

The luxury flats in Kadavanthra and similar locations showcase a harmonious blend of modern and traditional architecture, catering to the discerning tastes of home buyers. Whether it’s luxe apartments, bungalows, or villas, each property boasts elegant designs and contemporary layouts, exuding a refined aesthetic. High-end interiors featuring premium materials, fixtures, and fittings further enhance the allure for elite investors.

3. Amenities and Facilities

Flats in Ernakulam are equipped with world-class amenities catering to the affluent lifestyle. From swimming pools, fitness centers, and clubhouses to spa and wellness centers, multi-car parking, 24×7 security, and concierge services, these facilities align with the expectations of an opulent living experience. Flats in Vytilla are good examples of residents with the best amenities and facilities.

4. Privacy and Security

Distinguishing themselves in terms of security and privacy, flats for sale in Kochi’s luxury segment are often situated within gated communities with restricted access and round-the-clock surveillance by security personnel. Some complexes go the extra mile with advanced security features such as video intercoms, CCTV surveillance systems, and automatic fire-combating systems.

5. Sustainability

Embracing green and sustainable living, many flats for sale in Kochi incorporate features like rainwater harvesting systems, solar panels for electricity generation, energy-efficient appliances, and landscaping that prioritizes native plants and conservation. Investing in such futuristic projects ensures long-term benefits for investors.

6. Builders and Developers

Renowned builders in Kochi continuously innovate to meet the demands of discerning homebuyers. They offer modern, luxurious flats that stand out in the competitive market. Luxurious gated villas, deck-style apartments, personalized services, and advanced security systems are some of the innovative features that adhere to international standards, setting them apart from the rest.

Investing in Kochi’s real estate can be highly rewarding. Conducting thorough research on locations, and property markets, and seeking advice from industry experts is crucial. Given the high demand for reputable projects in the city, acting swiftly and vigilantly in property investment is paramount.

Investing in the Kochi real estate market is a wise decision. The city is one of the fastest-growing cities in India and it is also a top real estate market. The demand for rental properties is expected to be high in the coming years due to the influx of professionals demanded by the rapidly growing IT and allied industries. However, one cannot just invest in any property in Kochi. A property that will generate high rental returns must be carefully chosen by following certain tips.

Let us discuss these below:

1. Property location

The location of the property will determine the rentals it will earn. For high-return rental properties, one must look for localities that are already established as main hubs or those that have high growth potential. Investors can search for flats in Kochi in hubs of Kochi like Kakkanad or explore new locations like Edappally which have a potential for future growth. Tenants will usually choose locations that are easily accessible and have all the basic amenities and facilities.

2. Connectivity

The property should be well-connected to different parts of the city by road or rail using personal or public transport. Tenants usually look for a property that is easily reachable to and from their workplaces. The property should be close to or easily accessible from business districts, IT hubs, and important office locations. If they are not close, they should be easily reachable using public transportation.

3. Reputation of the developer

The Kerala real estate market is growing with many developers and builders wanting to make their mark. Choosing a reputed builder is the best way of safeguarding your investment. A reputed developer will have the best construction quality, facilities, and amenities. An investor cannot be spending money on repairs and maintenance within a short span of investing in the property. A tenant will always look for a property that is of good quality and is well maintained.

4. Social infrastructure

Educational institutes, schools, colleges, hospitals, and supermarkets are necessities tenants look for. The presence of these in close vicinity of the property increases the chances of tenants choosing the property. Owners can also charge a premium for the convenience of these properties ensuring a better quality of life.

5. Future growth and appreciation

With the growth of real estate investment in Kochi, many new micro-markets are being formed on the outskirts of the city. Nettoor and Maradu are such micro markets that are poised for development in the future due to their rapid urbanization. The properties in these upcoming locations are cheaper than those in the heart of Kochi. With the growth in physical and social infrastructure, the property prices and the rentals these markets command keep appreciating. By identifying and investing in reputed projects in Nettoor and Maradu early on, one can earn good returns in future.

High-return rental properties give a regular source of income. By identifying good properties at the right location investors can enjoy the benefits of additional income which will keep appreciating with time.

Investing in property is one of the most lucrative means of increasing your net worth today. Especially in one of the fastest-growing real estate markets, buying property is a smart decision as it not only provides appreciation on the investment but also regular rental returns. However, like any asset, property too needs to be managed effectively to maximize the returns it generates. Homeowners should follow a strategy to maximize rental returns on their property.

Important property management tips are discussed below:

1. Setting competitive rental rates

A thorough market research will give an idea of the prevailing rental rates for the property in Kerala. Factors like location, property size, amenities, and facilities need to be considered. By offering competitive rates you can expect your property to be rented faster without having long gaps in between tenants. Although tenants try to negotiate the rental rates it is always best to not allow too much leverage. This may make the tenant doubt the property’s condition or if there are any issues with the property.

2. Screening tenants

A thorough screening process of the tenants becomes necessary to ensure that the tenant does not create problems in the future. Background checks, credit checks, employment references, and supporting documents should be verified for the authenticity of the prospective tenant. Valid identity proofs like Aadhar card, PAN card, police verification, etc should be collected during the tenant registration process. This will ensure that the tenant does not default on the rent, damage the property, or threaten eviction.

3. Lease Agreement

The lease agreement is an important document that spells out the terms and conditions of the contract between the owner and the tenant. The lease agreement should be clear, concise, and easily enforceable without any ambiguity. The agreement should protect the interests of the property owner with provisions for the rent increase, late payment penalties, maintenance of the property, and renewal terms. It is mandatory to register the agreement with the authorities for it to be valid and enforceable. By avoiding potential disputes, the homeowners can ensure that the rental income is protected and there are no unnecessary expenses.

4. Maintenance of the property

A well-maintained property will attract the best tenants and ensure competitive rentals. Regular inspection of the property making sure there are no repairs, damages, or leakages, and performing necessary maintenance will justify the rent and a good relationship with the tenant. A well-cared property leaves a good impression of the owner amongst the tenants and brokers.

By setting competitive rentals, screening tenants, maintenance of the property, and having all the legal documentation and process in place, homeowners can rest assured of the expected returns on their property.