Investors, who had kept off the realty sector in the state’s commercial capital of Cochin because of the uncertainty over the Smart City project four years ago, are back with a bang after the mega IT project got a new lease of life last month. Land prices in and around Kakkanad, where the project will come up, soared by Rs50,000 to Rs100,000, soon after a revised agreement was signed between Dubai-based TECOM Investments and the state government. Brokers are now scouting for land not only around Kakkanad but also as far as Tripunithura, Angamaly and Kodungalloor so as to meet the huge housing demand to be spurred by the Smart City, as well as the expansion of the Infopark.
Property builders, on the other hand, are trying to give a facelift to the unsold flats and apartments. As many as 5, 000 units had been lying unsold for the last four years. Builders are now asking a 25 per cent hike for these units. They justify the hike in view of the huge pressure on living space the city is expected to face in the coming years. Besides Smart City, the Cyber City at Kalamaserry, International Container Transshipment Terminal at Vallarpadam and LNG Terminal at Puthuvypeen as well as a number of other projects are expected to bring people to the city from all over the world. While the ICTT commissioned by Prime Minister Manmohan Singh last month will turn Cochin into a hub for logistics professionals from India and abroad, the Smart City and other IT projects are set to make the city a hub for knowledge personnel.
The Kakkanad area, where most of the IT projects are located, is slowly emerging as the new Cochin. Besides the IT projects, a special economic zone and the administrative centre of Ernakulam district are also located there. Builders say that apartments and flats built in Kakkanad area can only meet a quarter of the estimated demand. Najeeb Zakaria, president of the Cochin branch of the Confederation of Real Estate Developers’ Association of India, estimates the IT projects alone to trigger a demand for 50, 000 housing units at Kakkand and surrounding areas. He said that investors were sure to flock to this area bringing in substantial investments in land, residential apartments, commercial space, townships etc. This is bound to lead to a substantial increase in property value as well as prices of apartments and flats, he noted.
A similar boom is also expected in Vallarpadam and surrounding areas following the commissioning of the ICTT. Realtors estimate that the ICTT will generate around 100,000 jobs directly and indirectly. Apart from this the port-based special economic zone, the LNG Terminal and other projects would push up demand for housing in big way in Puthu Vypeen and other nearby islands. Builders say these developments would enhance Cochin’s position as a favoured destination for real estate investors, occupiers and developers. This in turn will make the land value in the city to shoot up. Property builders are expecting the rich non-resident Indians to return to the market to take advantage of the boom. NRIs had kept off the market following the economic recession. The present land price in Cochin is considered to be very lucrative compared to similar cities in the country.
Land prices are likely to go up further in the coming years as the new norms under the Kerala Municipal Building Rules (KMBR) does not permit high rises in the city and its suburbs. The city is, therefore, expected to grow in all directions. Planners see the possibility of the city growing up to Chalakkudy on the north, Cherthala on the south, Thripunithura — Mulanthuruthy in the southeast and Parur — Kodungallore area in the northwest within a short span of time.
