KOCHI: The commercial capital of Kerala is currently experiencing a real estate surge, driven by increasing demand for office and retail spaces.
According to the latest Q1 2026 (January-March) report from a global property consultancy, Kochi has seen a significant 18% quarter-on-quarter increase in office leasing activity.
In the first three months of 2026, Kochi recorded a net absorption of 0.11 million (1.1 lakh) square feet of office space, indicating a shift in business preferences toward decentralized, cost-effective hubs outside saturated tier-1 metros.
The momentum is particularly strong in the city’s peripheral IT corridors, especially Kakkanad and surrounding areas, which accounted for two-thirds of all office leasing transactions this quarter.
Interestingly, traditional IT and ITes corporations are no longer the primary drivers of this growth. The flexible workspace segment has taken the lead, with co-working and hybrid office providers accounting for 37% of the total leased area.
“There has been a notable rise in inquiries for co-working spaces, especially from new companies, reflecting a growing corporate demand for agile, plug-and-play setups,” said Infopark CEO Susanth Kurunthil.
Kochi’s retail real estate is also experiencing growth. The influx of global brands, premium fashion labels, and gourmet dining chains has intensified competition for prime retail leasing spaces along major streets and inside modern shopping malls, significantly raising the city’s commercial market value.
“In Q1 2026, Kochi’s retail market recorded leasing activity of 42,000 sq ft, with main streets capturing 96% of this activity. Notable rental growth was observed, particularly in Panampilly Nagar, which saw a 19% year-on-year increase, and the Edappally-Vyttila bypass, which rose by 16%,” the consultancy’s report stated.
Currently, Kochi has a substantial commercial inventory, with total office space stock at 9.7 million sq ft. To meet growing demand, developers are ramping up infrastructure. The market anticipates an influx of 1.46 million sq ft of new office space by 2028.
