As per CBRE’s latest report, God’s Own Country Kochi, India’s Emerging Real Estate Hub, Kochi’s investment grade office space stock doubled from less
than 5 million sq.ft. in 2012, to 10 million sq.ft. in 2017. As per estimates,
by 2019 this is expected to cross 15 mn. Sq.ft. A majority of demand for office
space in the city continues to come from the IT Sector. Kochi with its lower
manpower costs, stable political environment and robust infrastructure
development is fast evolving as a preferred location for corporates looking to
expand their operations in the region.
Chandnani, Managing Director, Advisory and Transaction Services, India, CBRE
South Asia Pvt. Ltd. says
“Over the past few years, Kochi has
emerged as an attractive location for corporate expansion in Southern India.
The governments initiatives aimed at promoting the city, coupled with availability
of quality space, talent and connectivity to national and international cities are
the major factors contributing to the growth of the city’s Real estate market. Going
forward, all of this, backed by a stable state government to further enhance
Kochi’s appeal as a preferred destination for IT corporates looking to execute
their expansion or consolidation plans in the near future.”
economic activity in Kochi was driven by trading, port related activities, manufacturing,
tourism and mineral exploration. From 2000 onwards the office market began to
witness leasing activity, predominantly concentrated in the Central Business
District. Over time office space development and activity has moved to other suburban
locations in the city. The city’s
growing prominence as an IT hub, is encouraging large local as well as regional
developers to consider Kochi for their development projects. This has
had a cascading effect on other real estate segments as well, including retail and residential real estate
development which are seeing increased activity in recent times.
Segment – With
office space development expanding beyond the Central Business District of the
city and towards East Kochi, residential real estate development has also been
catalyzed here and in Northern suburban locations.
Segment – Kochi’s
organized retail stock stands at more than 3 mn sq.ft. A majority of the
existing retail developments in the city is primarily concentrated within the
existing CBD locations, characterized by the presence of single
brand/multi-brand retail outlets. Limited land availability for large-scale
retail developments has led to the development of retail in East Kochi.
Segment - Kochi
is an attractive tourist destination and serves as a transit point for travelers
visiting other tourist destinations such as Munnar, Alappuzha, Kottayam and
Palakkad. With the establishment of the IT/ ITeS industry in Kochi, the
hospitality sector has also witnessed a surge in the number of business travelers
to the city.
Compared to the other southern
cities, Kochi has various advantages including rentals for commercial space (1.5-2
times lower than other office hubs in South India), availability of talent,
better infrastructure development and last but not least the various policy
initiatives. Going forward the city will present various opportunities for
developer and corporates for real estate development.
Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.