Domestic Buyers Drive Real Estate Surge in Kochi

Kochi: The city's real estate sector is undergoing a significant transformation, with a growing number of domestic buyers opting for premium and mid-segment flats for residential purposes.

Earlier, the market was largely driven by Non-Resident Indians (NRIs), with apartments often purchased as investments and left vacant or rented. However, builders are now reporting a growing trend of more local buyers, especially from Ernakulam and nearby districts, moving permanently to the city for work or business.

According to RERA-registered builders, the buyer ratio has shifted from 30:70 (local:NRI) to 60:40 in favor of domestic buyers. “Earlier, 80% of our buyers were NRIs. Now it's below 40%, with 60% being locals planning to settle in Kochi,” said Ravi Jacob, Chairman of Trine Holdings.

Real estate developers attribute this shift to a change in residential culture. “Most flat buyers today are end-users, with very few purchasing them as an investment option. In nearly all our projects, the occupancy rate has reached 90%, which reflects this trend,” said V Sunilkumar, MD of Asset Homes.

Even domestic buyers are increasingly choosing premium projects—especially 3 BHK units priced over Rs 1 crore—equipped with high-end amenities. Many finance these purchases by selling off ancestral or rural properties, leveraging improved purchasing power and capital gains benefits.

Young couples are increasingly prioritizing access to premium facilities, with easy access to quality educational institutions and advanced healthcare available in urban areas, according to former K-RERA member M P Mathews. He added that the state's policy of encouraging private universities and colleges is also a contributing factor, leading to land acquisitions in rural areas, with former landowners reinvesting in urban housing, reinforcing the trend of end-use purchases.

The boom in commercial activity and job creation in tier-2 cities like Kochi is another key driver. “Metros like Bengaluru are becoming saturated, prompting business and IT sectors to shift to cities like Kochi, boosting its economic profile and enhancing the purchasing power of local buyers,” said Edward George, president of CREDAI's Cochin chapter.

Recognizing these shifts, builders are focusing on mid-segment 2 and 3 BHK flats, strategically located near Metro stations, schools, hospitals, and arterial roads. This strategic planning aims to cater to the growing demand from domestic buyers who are looking for convenient and high-quality living options in the city.