Close to 1 lakh people migrate from India to Houston in Texas in search of jobs, ever since the economy of Texas bounced back. The third highest Indian immigrant population is in Texas, right after California and the New York and New Jersey area. The rapid increase in the oil industry combined with the lenient tax regime, Texas has the lowest rate of unemployment in the United States as per investment consultants of the state.
The main drivers of the Texan economy are healthcare and oil. NRIs working here have been able to save up a lot for the purpose of investment in India. When an Indian property show was held in Houston, it was revealed that the highest investment demand from NRIs was for cities like Bangalore and Chennai. Even though most Indian immigrants would want to own flats in cities, there is also significant demand for developed plots and villas. Because of the high property prices in this city, there is a significant increase in demand for properties in cities like Thrissur, Calicut and Kochi. A lot of nurses from Kerala migrate to Texas for working in its healthcare industry.
Because NRIs cannot visit India very frequently, they seek the help of companies that manage properties. There are many NRIs who would want their senior citizen parents which are replenished with a good lifestyle and health care facility. However, the information about houses friendly for senior citizens is scanty which makes investment on the part of NRIs a little weak. There are several house for rent in Calicut that are owned by NRIs in plush neighbourhoods.
Even though most people would like to invest in a growing city such as Mumbai, there is an increase in investment demand in Ahmedabad real estate as well. Other cities which drew a lot of demand are Mysore, Coimbatore and Mangalore. Investors who want to buy property for long to medium term prefer to go for developed plots because value of land increases faster than other instruments of real estate. NRIs would want to take the income from house for rent in Calicut and several other secondary cities. In future, they would like to use the land as leverage for taking out a loan or funding their child's education in foreign countries such as US and Singapore.
Focussing on the market of Kochi
The real estate market in Kochi may be slow compared to Mumbai, Delhi, Bangalore and Pune, but it is rapidly developing thereby offered good investment avenues to interested parties. The Kochi metro's construction has begun along with other developments in infrastructure, initiatives of a Smart City and opening of employment opportunities in the city make it a viable one to invest in.
Some of the factors that drive the real estate market in Kochi are:
Metro Railway
The metro lines between Petta and Aluya is 25kms long and would connect areas such as Ambattukavu, Companypady, Edapally, Kalamassery, Ernakulam South, Palarivaton and Elamkulam. It is a bright area for real estate growth in Kochi.
Both locations along the metro railway as well as convenient commute are determinants of real estate investment here. The cost of property in these areas is already increasing. The city is the commercial and business capital of the state of Kerala. Even though Trivandrum has higher growth of real estate, currently property transactions are highest in Kochi.
Expanding Micro Markets
Areas such as Panampilly Nagar and Edapally are buzzing with real estate projects being planned there. A retail hub is being created along the stretch of the Edapally Bypass and newer mall spaces are being allotted every day. The population of Kochi is diverse, young and cosmopolitan. For suiting the needs of buyers here, the city is thinking of numerous outlets for business, investment and recreation opportunity.
Moreover, Special Economic Zones allotted for manufacturing units that are related to aircrafts, Aerotropolis and creation of the Vytilla Mobility Hub has started channelizing the city's traffic. These are meant to mobilize the rental and capital market in Kochi. Availability of house for rent in Kochiis much high in these areas.
Smart City
An ambitious project has been undertaken by the Government of Kerala in the Kochi Smart City which will be a business township that would be functional from 2015. There is an estimated creation of jobs at 90000 here by circa 2020.
It is a favourable scenario for investors and employees in this region. The creation of jobs would lead to an increase in demand for housing and it would also aid in the creation of a house for rent in Kochi market. Builders expect demand from those people who would be moving here for work. The expenses for operation is much less in Kochi compared to other large cities. Investors may bide their time to see Kochi transform into an important information technological destination in the coming future. In terms of literacy, there is no paucity in Kochi. However, when it comes to job creation, there is a lag. When the job market is expanded in Kochi, the number of investors attracted to the city would double.
Outlook of Property Prices
Almost 30 percent of the buying sample prefers multi storeyed apartments. For a 2BHK unit, the cost is between Rs 20 lakhs and Rs 65 lakhs. For a 3BHK unit, flats are available for Rs 23 lakhs to almost Rs 4 crores! The size of an apartment is usually between 800 square feet and 35,000 square feet!
Even though demand for house for rent in Kochi is not very well developed, but it could fetch a rental income of Rs 50,000. Youngsters working in the IT parks may take such apartments on rent on a sharing basis. Usually, the rental rate for an apartment is Rs 8000 in a month in Kakkanad while it can be up to Rs 45,000 along Marine Drive. Therefore, if you are looking to invest in Kochi, don't hesitate. The city is rapidly developing which ensures good yields for your property. An investor with a long sight would go for this.
The main drivers of the Texan economy are healthcare and oil. NRIs working here have been able to save up a lot for the purpose of investment in India. When an Indian property show was held in Houston, it was revealed that the highest investment demand from NRIs was for cities like Bangalore and Chennai. Even though most Indian immigrants would want to own flats in cities, there is also significant demand for developed plots and villas. Because of the high property prices in this city, there is a significant increase in demand for properties in cities like Thrissur, Calicut and Kochi. A lot of nurses from Kerala migrate to Texas for working in its healthcare industry.
Because NRIs cannot visit India very frequently, they seek the help of companies that manage properties. There are many NRIs who would want their senior citizen parents which are replenished with a good lifestyle and health care facility. However, the information about houses friendly for senior citizens is scanty which makes investment on the part of NRIs a little weak. There are several house for rent in Calicut that are owned by NRIs in plush neighbourhoods.
Even though most people would like to invest in a growing city such as Mumbai, there is an increase in investment demand in Ahmedabad real estate as well. Other cities which drew a lot of demand are Mysore, Coimbatore and Mangalore. Investors who want to buy property for long to medium term prefer to go for developed plots because value of land increases faster than other instruments of real estate. NRIs would want to take the income from house for rent in Calicut and several other secondary cities. In future, they would like to use the land as leverage for taking out a loan or funding their child's education in foreign countries such as US and Singapore.
Focussing on the market of Kochi
The real estate market in Kochi may be slow compared to Mumbai, Delhi, Bangalore and Pune, but it is rapidly developing thereby offered good investment avenues to interested parties. The Kochi metro's construction has begun along with other developments in infrastructure, initiatives of a Smart City and opening of employment opportunities in the city make it a viable one to invest in.
Some of the factors that drive the real estate market in Kochi are:
Metro Railway
The metro lines between Petta and Aluya is 25kms long and would connect areas such as Ambattukavu, Companypady, Edapally, Kalamassery, Ernakulam South, Palarivaton and Elamkulam. It is a bright area for real estate growth in Kochi.
Both locations along the metro railway as well as convenient commute are determinants of real estate investment here. The cost of property in these areas is already increasing. The city is the commercial and business capital of the state of Kerala. Even though Trivandrum has higher growth of real estate, currently property transactions are highest in Kochi.
Expanding Micro Markets
Areas such as Panampilly Nagar and Edapally are buzzing with real estate projects being planned there. A retail hub is being created along the stretch of the Edapally Bypass and newer mall spaces are being allotted every day. The population of Kochi is diverse, young and cosmopolitan. For suiting the needs of buyers here, the city is thinking of numerous outlets for business, investment and recreation opportunity.
Moreover, Special Economic Zones allotted for manufacturing units that are related to aircrafts, Aerotropolis and creation of the Vytilla Mobility Hub has started channelizing the city's traffic. These are meant to mobilize the rental and capital market in Kochi. Availability of house for rent in Kochiis much high in these areas.
Smart City
An ambitious project has been undertaken by the Government of Kerala in the Kochi Smart City which will be a business township that would be functional from 2015. There is an estimated creation of jobs at 90000 here by circa 2020.
It is a favourable scenario for investors and employees in this region. The creation of jobs would lead to an increase in demand for housing and it would also aid in the creation of a house for rent in Kochi market. Builders expect demand from those people who would be moving here for work. The expenses for operation is much less in Kochi compared to other large cities. Investors may bide their time to see Kochi transform into an important information technological destination in the coming future. In terms of literacy, there is no paucity in Kochi. However, when it comes to job creation, there is a lag. When the job market is expanded in Kochi, the number of investors attracted to the city would double.
Outlook of Property Prices
Almost 30 percent of the buying sample prefers multi storeyed apartments. For a 2BHK unit, the cost is between Rs 20 lakhs and Rs 65 lakhs. For a 3BHK unit, flats are available for Rs 23 lakhs to almost Rs 4 crores! The size of an apartment is usually between 800 square feet and 35,000 square feet!
Even though demand for house for rent in Kochi is not very well developed, but it could fetch a rental income of Rs 50,000. Youngsters working in the IT parks may take such apartments on rent on a sharing basis. Usually, the rental rate for an apartment is Rs 8000 in a month in Kakkanad while it can be up to Rs 45,000 along Marine Drive. Therefore, if you are looking to invest in Kochi, don't hesitate. The city is rapidly developing which ensures good yields for your property. An investor with a long sight would go for this.