Real estate trends had gotten highly opinionated and PR driven with no one laying facts to back their views. NHB Residex is perhaps the first attempt to scientifically base property trends and Kochi has been included as one of the 13 cities covered. National housing bank at the behest of Ministry of finance takes only actual transaction price to reach the index price. For Kochi 2007 was taken as the base price and the trends are being evaluated on a half-yearly basis.

Though the Jan-july 2009 reports are still awaited the earlier report gives some insights into locations and may help arrive at where to invest. As per the report the Mattanchery zone has shown the overall highest positive return with an 8% growth from 2007. However, the prices indicated in this territory has been volatile.  The Central zone comprising of  Fort Kochi Vili, Karugapalli,Venella, Mammankalam have shown highest stability and a reasonable appreciation. Prices have come down by around 5% in these areas. Elamakkara, North,,Podukalavattom have depreciated by around 6% from 2007 levels. Panampilly Nagar, Maradu, Thevara are the other premium destinations owing to proximity of the city and her the rates have come down by around 8% vis a vis 2007 rates. However rates in these areas have recovered from their early 2008 lows. There is no mention on Kakkanad which we suspect was the worst hit in the crash. Prices are down by around 205 from their 2007 highs. The over supply situation continues in this zone. The Vytilla zone has seen a marginal depreciation of 10% from their early 2008 highs.  However when compared to 2007 prices the decrease is only marginal. While too much cannot be read to the NHB Residex at this point we believe that as the number of data points increase over a period one would be able to do some meaningful interpretations and this would come to the aid of investors.

For those looking at opportunities here is a snapshot on asking prices we have gathered  in some of the areas.

Panampilly Nagar     Rs2750 - 3300
Kadavanthara            Rs.2600 - 3000
Thevara                        Rs.3500 - 4500
Chilavannoor             Rs.3000 – 3500

Kaloor                           Rs. 2800 - 3000
Palarivattom              Rs. 2600 - 3000
Edappally                     Rs.2800 - 3400
Vyttila                           Rs.2600 - 3200
Kakkanad                      Rs.2500 -2800
Marine Drive              Rs.6500 - 8000
Aluva                              Rs.2000 – 2600

These are just indicative rates. Primarily the rates depends on location, accessibility, builder, facilities etc. So go drive a bargain.

Retail development in Kochi

No doubt, the M.G Road is still the nerve centre of retail trade in Kochi with Marine Drive supplementing it. But what does the  future hold? There are some fundamental aspects to look into when talking about the direction retail hubs Cochin would take.  Kochi real etsate.

Retail concentration in Ernakulam is mostly in and around M.G Road, the Marine Drive and Broadway. Of these Broadway has remained stuck in time with no major change happening over the last few decades. M.G road holds the chunk of retail establishments and these include jewellery, clothing, footwear, eateries, banks, theatres and commercial offices. M.G Road has run out of quality retail space and there is limited activity happening at the moment. Apart from the Peevees mall coming up right next to Abad Plaza and the couple of smaller ones closer to the north end there is little by way of retail expansion. This has lead to rentals turning more expensive and the retailers looking at newer centers of growth. Marine Drive has seen some good amount of retail growth in the last few years with the addition of a couple of mini malls. There is more coming up including the Kerala Trade Centre of the Kerala Chamber of Commerce. New developments coming up north towards the Goshree Bridge is also likely to pick up. Current rentals for retail spaces in these prime roads range from Rs.60 per sq ft to Rs.150 per sq ft.

The south end of M.G Road is yet to pick up but the cost of real estate there is likely to have a bearing on any potential development that side. Again a good length of M.G Road still houses pre-1980 buildings. With increased FSI there could be a pick up in building make-overs with substantial space getting added. Ernakulam property

As to the east the Kaloor-Kadavanthra road with its swanky new look could draw parelells to M.G Road in more ways than one. Its proximity to residential areas will help its case. Panampilly Nagar could also emerge as a mini retail hub which could house upmarket brands. Rentals on this road currently ranges between Rs.25 per sq ft to Rs. 80 per sq ft.

However the biggest challenger to retail in the Central Business District will be the NH-47 bye-pass. It is already home to a number of businesses including car showrooms, accessories, furniture dealers. With 2 (Oberon and the Souk) malls starting operations, 2 more under construction (Grand Village (A P project and Lulu) and few more on the drawing board (Prestige )one wouln’t be surprised if it takes the sting out of M.G Road. What helps the bye-pass’s case is the traffic situation in Ernakulam and the fact that the typical customer is not someone who resides in Ernakulam. A bulk of these customers pass through the bye-pass to get to CBD. They would be glad to go in for more convenient shopping.

What could change the dynamics back in favour of the CBD?

Traffic buildup is becoming the biggest deterrent for shopping in Ernakulam. The vehicle population has been growing exponentially and in the absence of any new public transport intiatives the situation is going to deteriorate. The main entry points to the city which is the north and south overbridges are taking loads way beyond their capacity. The Pullepady bridge has been in development for a long time now and has not seen the light of the day. Every now and then we hear noises on overbridges at Atlantis, Pachalam but these are distant dreams. Ernakulam property

Kochi Metro is what provides a glimmer of hope. Given Ernakulam’s layout the metro is the best thing that could happen to Kochi.Once completed this has the potential to change the face of the city. The current alignment runs through the nerve and contrary to perceptions aired by various merchant’s fora this has the potential to take Kochi to the big league.

Broadway and surrounding areas are the heart of wholesale trade and could be anything from metals to hardware, sanitary, wood, interiors, plastics, toys, clothes. The city’s main market is also located here. Moving the wholesale market to the outskirts should be looked at as this could ease the pressure on the Ernakulam main lines. A majority of shoppers, retail and commercial live in areas upto 200 kms radius. Not everyone would require to come into the city and add congestion.