The roll-out of two mega infrastructure projects, the International Container Transshipment Terminal (ICTT) and the Smart City, may have kicked off another round of upswing in the realty sector of central Kerala. The last boom was seen around five years ago and had vanished three years later leaving the realty sector of the state in a state of gloom.
The ICTT and Smart City projects have given a new lease of life to the industry if brisk land deals in Kakkanad -- where the Smart City is coming up -- Edappilly, Kalamassery and Thripunithura are any indication. The average land value in the vicinity of Kochi city has suddenly jumped by Rs 50,000 a cent and in locations like Kakkanad the increase is around Rs 1 lakh a cent. The average per cent value in this area is Rs 6 lakh-plus now.
According to real estate dealers, there is huge demand for land around the city, especially in areas like Vypin, Parur, Aluva, Irimpanam and Mulanthuruthy. Rich NRIs are now interested in buying a piece of land in the vicinity of the proposed Smart City as the current price is lucrative. The chief minister of the state today announced that the construction of the project would commence within a fortnight and the first phase would provide employment to 15,000 professionals.
According to Mohamed Salim, managing director, Asset Homes, the prices of flats and apartments too had increased after the announcement of the two projects. The current rate per sft of flats is Rs 2,750 - Rs 6,000, an increase of Rs 100-250. He said that the city would need at least 10,000 flats in next 2-3 years.
The land prices increased to a range of Rs 7 lakh to Rs 70 lakh in and around the city. When the ICTT becomes fully operational, 10,000 more units of accommodation of various standards would be required, so would be case with the Smart City, according to KA Noushad, a real estate broker. The development of other projects like Cyber City in Kalamassery and the Phase-III development of Infopark will add more pressure on the housing situation in the city.
Biju Thomas, a construction contractor, said that the city had spread out in all directions as land is not available in the within the city limits of Kochi. Kakkanad area will be developed as New Kochi as a new township comes up there and is becoming the heart of the city. Apart from Smart City, Infopark, SEZ and other business establishments, the administrative centre of Ernakulam district is also located close to the area. These factors provide a big advantage to Kakkanad in the new phase of development.
The areas surrounding two important roads, the Bypass and the Seaport- Airport roads, is expected to become the most important location in the city as new shopping malls, vehicles dealers, corporate offices and hotels set up base in these areas. At least five luxury hotels and a number of flats are coming up along the bypass road connecting Edappally and Kundannur.
It is expected that a railway over bridge at Edappilly will be opened in September this year. The opening of this and the opening of Lulu international shopping mall at Edappilly will only add more traffic through the Bypass and making it possibly the busiest road of the district. There is a proposal to extend the seaport – airport road to Ankamaly in the north. The new container road connecting Vallarpadam to Kalamassery will have an impact on the development of Varapuazha – Cheranellore area and land value would go up here.
Other upcoming projects like the LNG terminal at Puthuvype on Vypin Island would lead to an increase in the demand for land in Vypin area. The beach-based tourism project at Cherai and the development of Mumambam fishing harbour in the northern part of the island will enhance much scope for realty, apartment and hotel businesses in the area. The new bridge, proposed at Munambam, connecting Munambam with Azhikode in Thrissur district will be a boon to the small island in terms of connectivity towards the northern parts of the state.
The city will be much wider in the next decade, extending up to Chalakkudy on the north, Cherthala on the south, Thripunithura - Mulanthuruthy in the southeast and Parur - Kodungallore area in the northwest. A number of multi-specialty hospitals including a multi-discipline medical college is coming up in Ernakulam district. The proposed Muziris Heritage Tourism project will add to the tourist attractions in the two central districts of the state.
That the land value in Kochi, compared to major metros of the country, is still low fascinates a large number of corporate houses, IT companies and builders. So a brisk season in the realty sector of the Queen of the Arabian Sea is ahead.
