Two major metro cities of God’s own country Kerala, Kochi and Thiruvananthapuram are offering a cumulative office space of 14 million square feet, which is the highest among tier-II cities, according to a report by the Confederation of Real Estate Developers' Associations of India (CREDAI) Kerala and Cushman & Wakefield. The report also stated that, these two cities are among the top 10 emerging cities for real estate market. With this achievement Kerala became the only state having two major cities in the list.
Both the cities have showed potential by scoring decently across most parameters, but maximum of the significant development was seen on aspects such as infrastructure, income levels, and housing affordability.
Moreover the report says Kerala’s real estate sector is poised to a substantial growth as the developers targeted tier-II markets for expansion, and given the state’s infrastructure delivery record, socio-economic framework, and availability of talent.
Managing director for Tamil Nadu and Kerala at Cushman & Wakefield India,VS Sridhar opined that, “With favorable government policies, a large diaspora of skilled non-resident Keralites, qualified and skilled talent pool and improved infrastructure, we anticipate Kerala to be an attractive destination for corporate occupiers and developers exploring alternative locations beyond the top 8 real estate markets."
As per the report of real estate market, with the introduction of IT/IT-SEZ and IT parks in Kochi, Thiruvananthapuram and Thrissur, cities in Kerala have started witnessing the creation of an ecosystem around commercial office market development, which continues to grow fast.
The report also highlighted that, apart from Kochi and Trivandrum, Kozhikode, Thrissur and Palakkad have started going upward in real estate development continuously. After this commendable stride Kerala could achieve a great position to become a leading destination for office occupiers looking at alternatives to the major cities to set up operational bases in tier-II cities.
According to the report Kerala had an urbanisation rate of 48 percent, which is higher than the India average of 31 percent, and the gap has widened of late, according to government data. On the other hand, a large contingent of non-residential Keralites working in higher-income countries including the US, the UK, Australia and in West Asia. Their remittances drive consumer spending, attracting retail brands and mall developers to the state.
National Sample Survey Office survey report stated that, Kerala's average monthly household expenditure not only surpassed the national average but also exceeded that of most industrialized states, including Andhra Pradesh, Karnataka, and Tamil Nadu.
With each passing day, the state is becoming an attractive destination for businesses and individuals due to its well-developed infrastructure network, with good roads, railways, airports and new-age transportation systems such as the metro rail and water metro.
The report suggested that, Kerala has the one of highest stamp duty of 8 percent and registration charges of 2 percent when compared to many other states, thereby impacting the cost of asset acquisition. State government could look upon subsidizing these charges.
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