Foraying into unchartered waters

Newbie Joined: May 21, 2009 Posts: 1

Other than in Kochi, perhaps in no other place in Kerala can you witness so many real estate projects vying for space in the prominent localities. While the Builders in Kochi are continuing with the scores of real estate projects undertaken earlier, the builders in other parts of the state are now making a rethinking on the newer developments in real estate.

The district collectorate in Ernakulam situated in Thrikkakara panchayat was nestled among small households. Until recent times land was available at rock bottom prices. No builder was interested in this area. All that has changed and land prices near the administrative center has gone up phenomenally. While the lowest land price quoted was around 40,000 to 50,000 rupees, the highest land prices hovered up to nearly 2 – 3 lakh rupees. In recent times, land values have seen a 300 percent appreciation in this area. With the entry of the prominent builders, land prices are likely to move up further.

Consider the situation in Kundannur junction. Land values were quoted in thousands and it never touched the one-lakh mark 20 years ago. Most of the property transactions involving a cent of land were quoted at less than 10,000 rupees. When the investors started eyeing this destination and started making significant investments, the overall picture changed overnight. In recent times no real estate transaction is possible at less than one-lakh rupees for a cent of land. The property prices have already touched three lakh rupees for a cent of land, which was available earlier at less than 40,000 rupees.

Landed properties in the neighborhood of the Kochi Corporation is now the favorite of the builders from all parts of the state. Also, land prices in the panchayats adjoining the city areas have already gone up. Due to the democratic decentralization process implemented earlier, the panchayats have added powers and are free to give sanction to a housing project or a high-rise apartment project, without awaiting the nod of the city corporation.