Residential Real Estate Investment in Kozhikode

Kozhikode, formerly called Calicut, is one of the best Indian cities to reside in. This city is located in Kerala along the coastline of the Arabian Sea. 

The coastline of Kozhikode is approximately 71 kilometres long and it has a commercially busy port known as Beypore Port. This port along with another minor port in Vadakara contributes significantly to the economy of Kozhikode. The city boasts a pleasant climate, beautiful beaches and many interesting places that draw tourists and residents every year.

Popular universities like the National Institute of Technology Kozhikode (NIT) and the University of Calicut are major contributors to the standard of living in this city. The literacy ratio in Kozhikode is 26, 34,493 people out of a total population of 30, 89,543 people which is a good indicator of the development of the city.

The residential real estate market in Kozhikode is at a peak now and a house or flat in this city will be a smart investment. To learn the benefits of buying a residential property in Kozhikode, check the information given below.

Top Reasons to Invest in Kozhikode Real Estate

If you want to know why should buy a residential property in Kozhikode, read through the following reasons to invest:

• A Commercially Advanced City

Kozhikode is one of the most developed commercial cities in Kerala. The city is a major trading centre and has one of the most prominent ports in the Malabar region. Hence, it offers a high quality of life for residents. 

• Moderate Population

The population of Kozhikode is only 8% of the total population of Kerala. Compared to its total land area which is around 2,34,566 hectares, fewer people (approximately only 30.9 lakh people) live in Kozhikode than in other major cities.

This presents a great opportunity for the city to grow in the future with an increase in population. As such, there is much scope for early investors to benefit from the growth of this city’s real estate market.

• Scope of Employment

Kozhikode has very well-performing IT and fishery industries which offer employment to many residents of the city. Cyber parks in Kozhikode house over 1,000 companies and thus the demand for employees in this industry is increasing every day. This makes it a profitable choice to invest in a residential property here.

Residential Real Estate Investment Opportunities in Kozhikode  

If you are looking for areas to invest in residential real estate in Kozhikode, you should look into the list given below:

• East Hill

East Hill in Kozhikode is an ideal locality for residential property investment. This area is suitably located away from the chaos of the city but has quick access to the important parts of Kozhikode through roadways. You can also get easy access to all amenities like schools and hospitals. The average cost of residential properties in this locality is around ₹4,558 per square foot.

• Eranhipalam

This locality is a hotspot for automobile requirements. It is also one of the fastest-developing residential areas in Kozhikode. Eranhipalam also offers local markets and public transport to residents making it a good choice for residential real estate. The average price of residential properties in Eranhipalam is approximately ₹2,539 per square foot.

Things to Consider before Buying a Residential Property in Kozhikode 

Investing in real estate is a long term commitment and thus, you need to check all the factors before you invest in a residential property in Kozhikode. Check the list of factors given below to invest in a profitable property in this city.

• Developer

Choosing a developer with a good track record is very important for your investment. If a residential property is developed by a reputed builder, it offers more assurance in terms of construction quality and investment value. This factor will also influence your property’s resale value in the future.

• Connectivity

One of the primary factors to examine when investing in a residential property is its connectivity to places where you regularly commute. You should choose a property that is conveniently connected to your workplace and also the rest of the city. This will fetch a better demand for your property as well.

• Lease Contract

Before you finalise a property deal, consider evaluating the lease contract carefully.  The lease agreement contains all clauses and agreements between you and the seller. You will be liable to complete the responsibilities listed by the contract once you purchase a property. Hence, always inspect the clauses in your contract before finalising your deal.

• Infrastructure

The quality and availability of social infrastructure and amenities available near your selected property is a crucial factor that affects its demand and the income it can generate. Tenants prefer properties with modern amenities and access to essential services like hospitals, schools, etc.

• Safety

Safety and security offered by a neighbourhood determine if tenants will want to reside there. Thus, you should ensure that your chosen property has easy access to a police station and fire station. In addition, you should also check surveillance and other safety measures deployed in your property’s neighbourhood.

• RERA

The Real Estate Regulatory Authority Act, 2016 under the Government of India mandates all states to have an operational Real Estate Regulatory Authority (RERA) body to govern all real estate activities in the state.

The RERA Act ensures the transparency of real estate transactions in our country and requires all builders to register and regularly update the progress of all properties under development. Hence, you should always check the authenticity of your selected property in Kozhikode from the official website of RERA Kerala.

Stamp Duty in Kozhikode

Registration Charges in Kozhikode 

Kozhikode Residential Real Estate Sector: What’s the Forecast?  

Kozhikode has witnessed a sharp rise in its real estate demand following an increase in the number of high-rise buildings and entertainment centres like malls and cinema halls. As more people are driven to this city due to its high quality of life, the number of active residential complex projects is also going up.

The IT sector is one of the primary sources of development in this city. Kozhikode being a Special Economic Zone (SEZ) in Kerala means that this city’s economy will continue growing, leading to the establishment of more businesses. This will likely create more employment opportunities in the future for the residents of this city.

This is a prime time to invest in a residential property in Kozhikode to take the opportunity of profitable prices and an uprising market. You can expect to earn good returns in the near future from your residential property.

Residential Real Estate vs Other Asset Classes 

The real estate market is a profitable option for growing your capital as an investor; however, there are a number of other asset classes to consider. Refer to the list given below to check the detailed comparison of real estate against other asset classes.

• Residential Real Estate vs Stocks and Mutual Funds

Stocks and mutual funds offer high returns to investors at high risks. These asset classes are extremely volatile and dependent on market behaviour. Residential real estate on the other hand offers moderate returns but carries relatively low risks.

• Residential Real Estate vs Bonds

Bonds are fixed return instruments that offer low to moderate returns at low to moderate risks. These are preferable options for risk-averse investors looking for marginally higher returns than traditional investments like fixed deposits.

In contrast, residential real estate offers comparatively higher returns over a longer investment period but it requires higher capital for the initial investment. However, residential real estate carries higher risk in comparison to bonds.

If you are interested to invest in high-performing bonds then check the list of available bonds on our homepage.

• Residential Real Estate vs Gold

Gold is a safe investment option which offers lower returns than real estate over a long period. The returns from gold investments are directly proportional to the appreciation value of the asset’s market value. Real estate investments carry slightly more risks and much lower liquidity than gold. 

• Residential Real Estate vs Commercial Real estate

Commercial real estate offers higher returns than residential real estate and has much higher demand in the market. However, the capital requirements for commercial real estate are comparatively higher and residential property investments are marginally safer.

The table below is a point-to-point comparison of the above assets based on returns, liquidity, risk, volatility and ticket price.

Steps to Invest in Residential Real Estate in Kozhikode 

Buying a residential property can be a challenging task if you are not aware of the process of real estate purchase. So, you can follow the steps given below to invest in residential real estate in Kozhikode:

Step 1: Select a good broker to ease your real estate investment process.

Step 2: Before you start your search you should select a budget for your residential property in Kozhikode.

Step 3: Once you are aware of a budget, you should do your research and learn the risks and other factors in the market along with price insights.

Step 4: Shortlist a few properties and visit all the sites to check the facilities and amenities provided.

Step 5: Finalise a property based on your requirements.

Step 6: Check all details related to your property on the RERA portal.

Step 7: Complete all formalities and submit your documents to complete the transfer process.

Step 8: Pay the seller and broker as per the agreement.

Step 9: Complete the registration process and pay all additional charges like stamp duty and registration charges.

Step 10: After your successful purchase, consider buying an insurance policy for your property.

Final Word 

Kozhikode is one of the early-developed cities in Kerala and it is also one of the commercial hotspots in the state. It is a prime location for real estate investments with respect to its rapid development in the commercial sector.

Opportunities for residential real estate development in this city are also vast as the population here is low compared to the rest of the state. As the population rises the demand for residential real estate will also be higher in Kozhikode. Therefore if you want to buy a residential property in this city, this may be the right time.

Frequently Asked Questions