Being strategically located on the northern suburb of Kochi, with excellent connectivity and social infrastructure facilities, Kalamassery has significant potential for real estate development, with a larger potential for residential development.
On the one hand, its distinct industrial characteristics mean the pace of development is slower when compared to other micro markets of Kochi.
On the other hand, due to the challenges of running industries because of lack of availability of labour and expensive raw materials, several of the manufacturing, chemicals and fertiliser industries which are currently operational there are contemplating closure of industrial operations in order to unlock the land for real estate development.
This, coupled with the proposed metro rail connectivity and cyber city project, Kalamassery is likely to witness significant changes in its characteristics in terms of real estate development over three to five years.
Due to the industrial profile of the location, only residential real estate currently has any real presence at Kalamassery. Capital values for residential apartment are Rs 3,200-3,500 per sq ft of saleable area. This micro-market has witnessed a capital value growth of seven-eight per cent per annum over three years. A 2-BHK apartment unit of size 1,000-1,200 sq ft typically commands a rent of Rs 8,000-10,000 a month.
A majority of the office space supply is in the form of standalone developments. Commercial office spaces tend to be available in upper floors and most of these developments have very small floor plates, without any major amenities and facilities. Rental values are Rs 20-30 per sq ft a month, and a higher range is applicable for ground floors which can be used for retail activities such as showrooms, banks, etc. Translated capital value range is between Rs 2,500-3,500 per sq ft.
Some reasons why Kalamassery presents a good real estate investment option are:
- It enjoys a strategic location in the northern suburb, with excellent connectivity and social infrastructure
- Location close to the international airport and upcoming urban infrastructure augmentation initiatives by the government
- Comparatively lower capital values are witnessing gradual but steady growth
- Location is in the early stages of real estate growth, and the profiling will change significantly once the closing of industries and infrastructure initiates in the pipeline begin acting on this market's overall viability. As of now, it presents the advantage of a low entry point.
The writer is local director, strategic consulting, Jones Lang LaSalle India
