Kochi Emerges as the Top Future Megacity of India: JLL Study

KOCHI:
JLL, India’s premier and largest professional services firm, specializing in real estate, is associating with CREDAI Kerala, as their Knowledge Partner for the CREDAI Kerala Statecon, November, 2018.
Ramesh Nair, Country Head and CEO of JLL was having a face to face with the Chairman of CREDAI Kerala, Dr. Najeeb Zackeria, who is also the Chairman and Managing Director of ABAD Builders, during the recently held CREDAI Kerala, Governing Council meeting at Kochi. JLL study reported that Kochi emerges as the top future megacity of India by promising economic growth and future prospects.
 Graded residential stock estimated at 60,000 units
 Residential values have increased by 8% – 20% since 2012
This emerged in a nationwide study that included 45 destinations (metros and non- metros) from all major states across the country. Upon evaluation, Kochi stood out to have the most promising future due to its already strong economic fundamentals, current and proposed infrastructure, and the growth in real estate over the last few years. The study bases its findings on key parameters such as Socio-Economic Momentum, Enhanced Connectivity Infrastructure, and High-Value Indicators.
The economic capital for Kerala, Kochi has been a center of trade and commerce owing to its strategic location along shipping routes. Office space, Retail and Residential markets have seen a revival in this market in the last few years and with the sustained momentum will continue to see growth across all parameters.
The commercial development in recent times for Kochi has been largely due to its recognition as the IT/ ITeS destination along with its port activities, which has led to a significant growth in the commercial office space market. Following are the prime areas witnessing different real estate activities.
 Corporate offices & Retail developments: CBD Area (NH Bye-Pass Road, Seaport Road,Kaloor-Kadavanthra Road, MG Road, Marine Drive, Banerjee Road, SA Road) – houses financial institutions and travel agencies, etc.
 IT/ITES: Kakkanad, Kalamassery,etc which are located in the peripheral areas.
 Industrial Development &  Logistics/ Warehousing: Kalamassery, Varapuzha,NH Bye-Pass Road, Tripunithura, Aluva, Eloor and some parts of NH-17.
 Residential: Marine Drive extension, Panampally Nagar, Kadavanthara, Maradu, Tripunithura, Edappally, Kaloor,
Palarivattom, Panangadu,Thevara,Kakkanad, Aluva, etc. Whereas villas are confined to the peripheral region like Aluva, Kakkanad, Tripunithura, Vennala, Thevara, Maradu, Kaloor etc.
RESIDENTIAL MARKET ON HIGH GROWTH MODE
The growth is especially pronounced for the residential sector. The present total stock of graded residential projects (including villas) is approximately 60,000 units of which villa accounts for about 9% of the total stock. Especially with respect to residential apartments, there is a high concentration of Grade A residential properties that are estimated to be over 28,742 units while Grade B amount to approximately 18,738 units. Further 600 plus units of new residential projects were launched in the year 2018 under various grades. Whereas, with respect to villas, local players play a vital role.
Ramesh Nair, CEO & Country Head, JLL India said, “The real estate market in Kochi witnessed unprecedented growth over the past five years in terms of capital values and development activity. The revitalization and stabilization of economic crisis across the global market, continued NRI interest, followed by the Kerala Government’s signing of lease dead for Smart City Project and operation of International Container Transshipment Terminal (ICTT) has given a new lease of life to the real estate industry.
Further Kochi is the first Tier-II city to have Metro Rail Connectivity which is a catalyst for real estate development.” JLL is also looking at increasing its presence in kochi city immediately and is bullish of the real estate growth in various asset classes over the next two years.
Dr. Najeeb Zackeria, Chairman, CREDAI Kerala, said, “Kochi has a lot of pent-up demand for housing units and more importantly, Kochi has been growing as one of the most planned cities in the country.Very few cities in India can today boast having airport, seaport and metro as part of the same city. Kochi is passing through an unprecedented pace of infrastructure growth activities with scores of flyovers are being built and with work on metro and inland waterways under way”.Dr.Najeeb also added that the official house price data released by RBI shows that Kochi has recorded the highest sequential growth in house price index (HPI) during the last quarter of the just concluded financial year, 2017-18.
CREDAI Women’s Wing, Kerala Chapter, was officially launched in Kochi, after the meeting, by DarshanaParmar, National Coordinator for the CREDAI Women’s Wing. Dr. Najeeb Zackeria, Ramesh Nair, State Women’s Wing Coordinator, Susie Paul, Kochi City Coordinator, Jaya Antony, Women’s Wing members and the EC-GC members of CREDAI were present during the Launch session.
The main objectives set out by the Women’s wing is to focus on areas of Environment by enhancing activities of Credai clean city movement, Skilling of construction workers at site, Education by providing scholarships to deserving students connected to the real estate industry and Healthcare by conducting medical camps in construction sites.