KOCHI: The extensive development of the national highway is transforming Kochi’s growth trajectory, shifting real estate activities from the city center to the previously quiet suburbs like Maradu, Kundanoor, Madavana, and Koonammavu.
The demand is fueled by comparatively lower land prices in these areas, ranging from Rs 7-10 lakh per cent, while Kochi city and the IT hub of Kakkanad command prices between Rs 25-40 lakh per cent.
“Now, areas once viewed as outskirts are becoming attractive spots for investors and individuals seeking house plots. There’s a growing interest in mid-range properties, often 3-5 cents with small houses priced below Rs 1 crore. We’re receiving numerous inquiries, particularly from families,” stated Midhun Lal, district treasurer of the Kerala Real Estate Agents Association (KERKA).
According to KERKA, properties within a 5 km radius of major highway projects have seen value increases of 25-30% compared to city averages. For example, land prices along the highway at Nettoor and Madavana have surged to Rs 7-10 lakh per cent, up from Rs 5 lakh last year.
“While overall commercial demand remains strong, there has been a cooling effect in overpriced city-center areas. This is evident in the Reserve Bank of India’s House Price Index (HPI) for Kochi, which recorded a decline of -2.3% in the last quarter of FY 25, compared to a general increase of 3.1% nationwide,” added Lal.
“Businesses are relocating from congested urban areas to regions adjacent to highways and IT corridors, where connectivity is better. Many new commercial ventures have emerged along the NH bypass,” he continued.
In terms of buyer demographics, there has been a shift. Unlike previous trends dominated by non-resident Keralites (NRKs), a significant number of local investors are getting involved in Kochi’s real estate market. Many who were once satisfied with large ancestral properties in rural areas are now selling them off to invest in Kochi’s urban landscape.
“I purchased a villa near Nettoor after selling our home in Alappuzha. The gated community setup ensures my wife and parents are safe while I’m at work, and they can enjoy their own space,” remarked Dr. Prasanth N, who is employed at a private hospital in Edapally.
Deepak L Aswani, co-chair of Ficci (Federation of Indian Chambers of Commerce and Industry), Kerala, concurs, noting an increasing demand from local buyers, especially for gated villa communities.
“A leading construction group is now focusing on a new ‘Build Your Villas’ project in Koonammavu along the Edapally-Paravur route, allowing buyers to purchase developed plots and build their own homes (ranging from 1,600 to 3,260 sq ft). Common facilities such as swimming pools and jogging tracks will be available, combining personal living spaces with community benefits and security. People prefer gated communities as security is a vital consideration,” he concluded.
