Highway Expansion Reshapes Kochi’s Real Estate Landscape
Kochi: The massive construction of the national highway is reshaping Kochi's growth map, pushing real estate activity from the city to once-quiet outskirts like Maradu, Kundanoor, Madavana, and Koonammavu. The comparatively lower land prices are driving the demand. Land here costs around Rs 7-10 lakh per cent, while prices in Kochi city and the IT hub Kakkanad are Rs 25-40 lakh per cent.
"Areas once considered outskirts have now emerged as the new hotspots for investors and those looking for house plots. There is a rising demand for mid-range deals, involving property often 3-5 cents, along with a small house, below Rs 1 crore. We're receiving a lot of enquiries, especially from families," said Midhun Lal, district treasurer, Kerala Real Estate Agents Association (KERKA).
According to KERKA, properties in a 5km radius of major highway projects have seen values surge by 25-30% over city averages. For instance, land prices along the highway at Nettoor and Madavana rose to Rs 7-10 lakh per cent, from Rs 5 lakh a year ago, Lal said. While there is no downfall in total commercial demand, a cooling off effect has happened in over-valued city-centre pockets. It is reflected in RBI's House Price Index (HPI) for Kochi, which recorded a dip of -2.3% in the fourth quarter of FY 25 as against a general 3.1% increase nationwide.
"Businesses are moving away from congested cities toward highway-adjacent regions and IT corridors where connectivity is superior. Many new commercial establishments have come up along the NH bypass," Lal added. Meanwhile, the buyer profile is also shifting. Unlike earlier trends dominated by non-resident Keralites (NRKs), there are many locals investing in Kochi. Many, who were once content with expansive ancestral properties in hinterlands, are now liquidating them to secure a space in Kochi's urban core.
"I bought a villa near Nettoor after disposing of our house in Alappuzha. Since it's a gated community, I know my wife and parents are safe while I'm away at work. They can also enjoy their private space," said Dr Prasanth N, who works at a private hospital at Edapally. Deepak L Aswani, co-chair of FICCI (Federation of Indian Chambers of Commerce and Industry), Kerala, too agrees that there is currently a lot of demand from domestic buyers, especially for gated villa communities.
"A prominent builder group is now focusing on a new ‘Build Your Villas' project in Koonammavu along the Edapally-Paravur route. The project allows you to buy a developed plot and build your own house (1,600 to 3,260 sq ft). One will get common facilities like swimming pools, jogging tracks, etc. So there is a combination of private living space with the benefits of community living and security. People now prefer gated communities as security is a key aspect," he added.
