Residential Real Estate Investment in Cochin
Cochin, also called Kochi or Ernakulum, lies in the Ernakulum District of Kerala. This city is relevant for its rich history, scenic views and world-class infrastructure. As a result, Kochi is one of the most popular tourist destinations and the largest commercial hub in Kerala.
As a city with an average literacy rate of 97.36%, Kochi houses some premium institutions for higher education. Moreover, this city is also Kerala’s financial, industrial and commercial capital. Kochi is also one of the largest port cities in India, with a strategic position that makes it a leading trading hub.
The Kochi Refineries, Kochi Shipping Yard, Cochin Stock Exchange and IT companies like Wipro, US Technology, OPI Global, Tata Consultancy Services, etc., are the largest employers in this city. There are also around 250 industries in Eloor Industrial Area. Therefore one can find plenty of employment opportunities in Kochi.
Along with these advantages, living in Kochi is also quite affordable for students and professionals. Furthermore, there have been very few criminal cases registered in Kochi in the past few years. Therefore, Kochi is considered to be one of the safest Indian cities to live in.
Keep reading to learn about the benefits of investing in residential real estate in Kochi.
Top Reasons to Invest in Residential Real Estate in Cochin
Here are some reasons to invest in residential real estate in Kochi.
- Safe City for Women
In 2019, Kochi recorded only 492 crimes against women cases. This highlights that Kochi is one of the safest cities for women to reside in Kerala. Therefore, women students and employees can live here alone without worrying about their security.
- Growing IT Industries
Kochi stands out as one of the rapidly emerging Indian cities. Besides significant industries and trade businesses, Kochi is also home to many IT companies. This city also has a Special Economic Zone (SEZ) for software firms and other commercial ventures.
These act as a significant employment hub for the people of Kerala and all over India. Therefore, many people shift to Kochi to explore job opportunities and grow their careers.
- Affordable City
As a tier-2 city, the cost of living in Kochi is relatively cheaper than in other large cities. The average monthly expenditure in Kochi can range from ₹35,000 to ₹45,000. This is comparatively lower than most metropolitan Indian cities. Also, healthcare, entertainment and education expenses are not as high as in other tier-1 cities like Delhi, Bangalore and Chennai.
Residential Real Estate Investment Opportunities in Cochin
Here are some of the prime residential localities in Kochi where you can invest and earn maximum returns.
Edapally is one of the famous commercial and residential areas in Kochi. Some of the fastest-growing neighbourhoods surround this place. The industrial town of Aroor lies close to Edapally.
Edapally hosts important schools and universities that attract scholars from around Kerala. Some of them are KMM College of Arts and Science, Amrita Institute of Medical Science and model Engineering College. Moreover, there are medical centres like the Insta Speciality Hospital, MAJ Hospital, and Mom Premium Women Hospital near Edapally.
Residential property prices here start from ₹5,679 per square foot approximately.
- Marine Drive
Owing to its scenic beauty on the banks of Kochi backwaters, Marine Drive is one of the most popular residential areas in Kochi. This place hosts several luxury and affordable properties overlooking the backwaters. Marine Drive also hosts some of the major shopping malls in Kochi.
This region also attracts students as it has universities like St. Thomas College, MGM College and St. Theresa’s School. Marine Drive also hosts some reputed hospitals like Medical Trust Hospital, Lourdes Hospital, and Ernakulam General Hospital.
Property prices in Marine Drive can start from ₹9,108 per square foot approximately.
Things to Consider before Buying a Residential Property in Cochin
Here are a few points you need to consider before investing in residential real estate in Kochi:
- Lease Structure
A lease is a legal document that binds a tenant with the property owner with specific terms and conditions. As an investor, you must clearly understand all the clauses here. This will help you be aware of the risks associated with the deal. It is a good idea to seek assistance from legal advisors to understand the terms and conditions.
- Location and Connectivity
The location of a property and the transportation facilities available from there plays a vital role in its valuation. A residential property in the city centre is likely to attract more tenants and higher prices as it makes travelling easier. In contrast, residential units in city outskirts with poorly maintained roads might not attract the home-seekers.
- RERA Authentication
The Real Estate Regularity Authority Act 2016 monitors transparency in the real estate industry with a Real Estate Regularity Authority (RERA) body in every state. Every builder must register any real estate project on their respective state’s RERA portal.
Similarly, builders and brokers in Kochi need to register their properties in Kerala’s RERA portal. You can search for your shortlisted properties here and learn about their ownership details.
Stamp Duty in Cochin
The table given below highlights the stamp duty charges for residential properties in Kochi.
|Male + Female||8%|
|Female + Female||8%|
|Male + Male||8%|
Registration Charges in Cochin
Here are the registration charges for residential real estate in Kochi.
|Male + Female||2%|
|Female + Female||2%|
|Male + Male||2%|
Cochin Residential Real Estate Sector- What’s the Forecast?
Kochi is one of the fastest-developing Indian cities in trade, tourism and industries. Remittances from NRI also act as a significant contributor to Kochi’s economy. Furthermore, this place is also a haven for NRI real estate investors.
As a robustly growing tier-2 city, Kochi houses around 450 IT companies. These companies act as employers for not just locals but all over India. Thus, they act as vital pull factors for people in nearby cities and states.
A number of domestic firms and MNCs have offices in Kochi, including Techversant, Blue Horizon Infotech, Cognizant, Naico, and Webdew. Furthermore, the Kerala Government has proposed building an Industrial Park near Electric City. This will increase employment opportunities and lure in more employees across the nation.
This growth in commercial opportunities in Kochi will spike the demand for residential areas. Owing to this, you can earn high returns by investing in residential real estate in Kochi.
Residential Real Estate vs Other Asset Classes
Let’s look at the differences between residential real estate and other asset classes regarding ROI, risks, liquidity and other factors.
Residential Real Estate vs Gold
As buying and selling gold is easier than residential properties, its market is highly liquid. Additionally, gold is a suitable asset for both long and short-term investments. On the other hand, residential real estate is good for long-term investments only. However, you can earn more returns from investments in residential real estate than from gold.
Residential Real Estate vs Bonds
Investing in residential real estate can help you earn higher returns than bonds. Furthermore, in terms of taxation, residential real estate can fetch you more tax benefits than bonds. However, bonds are a safer investment and have a more liquid market compared to real estate.
Explore our homepage to invest in top-rated bonds with low-risk and stable returns. Here, you can start investing instantly with zero hidden or additional charges.
Residential Real Estate vs Stocks and Mutual Funds
Stocks and mutual funds have an unstable market. As a result, you can earn very high ROI from the stock market or face massive losses. Consider having basic knowledge about this marketplace before investing. On the contrary, residential real estate carries lesser risks than stocks and mutual funds and offers more stable returns.
Residential Real Estate vs Commercial Real Estate
Commercial real estate is comparatively more expensive than residential ones and, thus, offers high ROI. On the other hand, due to their high transaction cost, they carry higher credit risk. In terms of taxation, you can enjoy more benefits from residential properties.
The table below compares the above asset classes based on their liquidity, volatility, risks and ticket price.
|Parameters||Residential Real Estate||Stocks & Mutual Funds||Gold||Commercial Real Estate||Bonds|
Steps to Invest in Residential Real Estate in Cochin
You can choose to follow these steps to invest in residential real estate in Kochi:
Step 1: Fix a budget to invest in residential properties in Kochi.
Step 2: Shortlist a few locations and conduct on-site research to analyse the ground situation.
Step 3: Visit these locations for a thorough understanding of your benefits. Also, seek help from real estate consultants to know about prospects in the area.
Step 4: Finalise and purchase a property after checking its RERA authenticity.
Step 5: Pay the seller to transfer the property under your name.
Step 5: Collect the essential documents like the sales deed and encumbrance certificate.
Step 6: Pay the additional charges like stamp duty and registration charges to transfer the property under your name.
Step 7: Consider paying the service charges to brokers or real estate consultants. (If any)
Step 8: Purchase an insurance policy to cover your recently bought residential property. This will help safeguard your financial situation in case of significant damage to the residential property.
Kochi offers best-in-class living standards at affordable prices. Its many industries, strategic location and social infrastructure attract many people to come to this city and settle down. Owing to this, you can fetch high returns by investing in residential real estate in Kochi. However, consider abiding by the RERA norms while purchasing residential properties.
Frequently Asked Questions
What is the nearest railway station to Kochi?
The Ernakulam Junction is the nearest railway station in Kochi. You can access other cities of Kerala and nearby states easily from here.
Who needs to pay stamp duty and registration charges while purchasing a property?
The buyer or investor of an immovable property like a house, flat or land must pay the stamp duty and registration charges. These apply to both residential and commercial real estate, and the charges vary from one Indian state to another.
What is an Encumbrance Certificate?
The encumbrance certificate is a legal document that covers property details like ownership and financial or legal liabilities. An encumbrance certificate acts as evidence to prove that the property is free from any form of debt. You need to produce the encumbrance certificate while applying for a home loan.
Does Kochi have an airport?
Kochi has its own international airport to allow global and domestic commutation to and from this city. The Cochin International Airport in Nedumbassery is the airport serving this city.