- 9 Jan 2020
The real estate industry in Kerala, and Trivandrum in particular, has seen phenomenal growth over the past two decades. It played a significant role in boosting Kerala’s economy. This article looks into the current scenario in residential sector in Trivandrum.
Real estate sector played a crucial role in changing Trivandrum’s notion of a conservative and sleepy city. It all started when large MNCs and IT firms began expanding their operations to the city. Industrial expansion bought in a lot of people from other parts of the country to Trivandrum. As a result, the demand for office, retail and housing space increased. The liberalisation of FDI policies, urbanisation, high disposable income & growth of an aspirational population are some of the reasons for the real estate growth.
Trivandrum has an undulating landscape. Proper city planning, infrastructure facilities, air quality index are some of the elements that favour the real estate growth here. The city has a well planned, ethnic infrastructure that prevents floods during rains. Moreover, all major places are within the proximity level and can be accessed easily. Trivandrum is a place where people can afford housing, education and the standard of living within what one earns. Right now, it is a favourable situation for people who’ve worked in Tier-1 cities to come and take up jobs here.
Growth of residential sector in Trivandrum
The residential sector in Trivandrum has always been on a stable growth phase, right from its early days. Even after the real estate sector underwent a lot of ups and downs, the demand for quality housing remains high. According to CREDAI, the demand-supply ratio is steady in Trivandrum, as there is no oversupply. The reason is that only genuine buyers come to Trivandrum, who consider settling down in the city rather than just as an investment opportunity.
Raghuchandran Nair, MD of SI Properties & President of Trivandrum Chamber of Commerce and Industry, says that “The real estate sector contributes to more than 50% to the Kerala GDP. Trivandrum’s real estate market size is worth an average of more than Rs 4000 crores annually, excluding the unorganised sector that contributes another 30%”.
Residential real estate around Technopark
The apartment culture became more organised in Trivandrum from the late 80s. Today, Trivandrum hosts a lot of high rises, which was not there 20 years back. The advantage of Trivandrum is that developments are not confined to a particular area. Apartments are spread out to all major places in the city. Most of the new residential projects are around the growth corridors like Technopark- Chackai stretch due to the growth of more work institutions & bypass road. The upmarket areas continue to be Jawahar Nagar, Kowdiar, Kuravankonam, Sasthamangalam, Vellayambalam, Vazhuthacaud. A person moving to Trivandrum for work would mostly prefer settling down near Technopark while a native of Trivandrum would prefer the city side.
Vivek Mohan, sales manager at SFS Homes says “Along the Kazhakootam – Chackai stretch, SFS has developed 1000 apartment units in 12 towers, already sold out, which shows that 1200 families have moved to Trivandrum. The numbers might go up to more than 2000 when we consider the total number of apartment units by other builders as well. Within five years, the requirement for apartments has increased by more than 60%. Given the recent influx of tech majors like Nissan, Hitachi and the expansion of EY and Allianz, the requirement in 2025 will be more than 5000 units just around Kazhakootam. “
When it comes to the real estate sector here, it’s mostly the homegrown companies that cater to the needs of the local crowd. Trivandrum is a place that caters to the needs of all sections of people. As affordable housing gains traction, builders these days focus more on offering quality housing at affordable rates, thereby aiming the middle-class crowd.
People who move to Trivandrum are mostly concerned about how secure their homes are. Builders usually provide facilities like CCTV Surveillance camera and Biometric entry these days in apartments. Also, there are security personnel appointed both at the gates and for individual buildings if it is a multiple-building project. As far as waste management is concerned, there are Sewage treatment plants, Bio bins for perishable goods & Incinerators for paper waste. Multipurpose halls, children’s play area, lifts and generators are the commonly offered amenities in apartments. While swimming pool, home theatre, terrace party area, fitness centres fit into the range of premium facilities.
The demand for housing has gone up over the years. So did the land prices. Only genuine buyers come to Trivandrum, who think of settling down in the city. As demands are high, people get good returns, both in terms of resale and rents.
The price range of apartments depends on the location and amenities provided. Lesser the amenities, lesser will be the maintenance costs and price. Usually, the prices are comparatively low if bought at a time of a project announcement. Around the Kazhakootam- Chackai stretch, prices are around Rs 5500- Rs 6000 per sq.ft on the highway side & around Rs 4500 per sq.ft towards inner areas. Towards the city side, prices go up to Rs 8000-12,000 per sq.ft. But experts say that these prices are not sustainable & it might come down to Rs. 6000-7500 per sq.ft eventually. As far as apartment rents are concerned, it is Rs. 13,000 for 1BHK, Rs. 16,000 for 2BHK, Rs. 20,000 for 3BHK & Rs. 25,000 for 4BHK.
Co-living and future trends
The demand for housing is expected to rise in the years to come. Trends like Student housing and Co-living are expected to gain more traction in the coming years. Experts say that the concept of ownership has started becoming unpopular, as people have begun thinking about leasing out homes instead of owning it.
Asset Taurus Identity, a serviced apartment project jointly developed by Taurus and Asset Homes at Downtown Trivandrum will have 320 units. The project will have 74 selfie, 10 selfie premium, 101 2BHK, 75 3BHK apartments & 12 penthouses.