More than half of the Philippines' provinces are in drought as El Nino exacerbates hot and dry conditions typical for March, April and May
This will boost demand for housing and make it one of the next highly-preferred real estate destinations in India. The six reasons why this will happen shortly are:
Inclusion in top 20 Smart Cities
Recently, the Ministry of Urban Development identified the top 20 candidates under the Smart City initiative. Kochi ranks fifth and expects an investment of Rs20.76 billion for pan city solutions and area-based development. E-governance and water management are focus areas as part of pan city solutions which will help Kochi to access improved and planned infrastructure with assured water and power supply, sanitation and solid waste management, efficient public transport, IT connectivity, etc.
Kochi-Mattancherry-Central City, which is selected as the area for development, will witness intense development in the coming years. Numerous developers are trying to acquire land for real estate development in and around this area. The 'Smart City' tag is expected to boost prices.
First Tier-II city with a Metro
The Metro rail in Kochi is under construction and expected to be operational by 2017. In phase one, the Kochi Metro Rail Corporation has proposed an elevated route spanning 25km from Aluva to Pettah. Real estate will be greatly influenced once the Metro becomes operational. Areas such as Kalamassery, Edapally, Palarivatom, Ernakulam South, Elamkulam, Vytilla, Panampilly Nagar and Kadavanthara will be the main beneficiaries.
The future expansion of the Metro will benefit areas such as Kakkanad and West Kochi. Metro rail stations exert influence up to a buffer of 1km radius, with maximum influence in the areas within a 500m radius. Land prices along Metro rail corridors have increased by 10 per cent to 15 per cent after announcement, and are expected to increase further after operations.
New airport terminal
Cochin International Airport Ltd (CIAL) is constructing a Rs11 billion international terminal. It is designed to handle 4,000 passengers per hour and will be commissioned by 2016. Once operational, the new international terminal will have a very positive economic impact and uplift the real estate market in the region. The catchment will witness development of new retail and commercial spaces along with a good supply of residential and hospitality developments to cater to the increasing demand.
The increased international connectivity will also pave the way for global companies and cargo-based businesses to deploy and expand operations nearby. The catchment itself is expected to witness 15 to 20 per cent rise in property prices.
Submarine cable landings
Kochi is one of the venues for 'SEA-ME-WE-3' (South-East Asia-Middle East-Western Europe 3) and 'Safe' submarine cable landings, and is the second Indian location along with Mumbai to have two submarine cable landings. This fact highlights Kochi as an important destination for IT enabled services (ITeS).
The major thrust on IT/ITeS development will boost real estate development in the city as it creates demand for residential properties, Grade A office spaces and retail developments.
Global hub terminal
Kochi is among India's leading cities for strong port infrastructure and has the largest (and India's first) global hub terminal - the International Container Transshipment Terminal at Vallarpadam. This makes Kochi the premier port gateway to South India. Warehouses and other port-based industrial developments will see growth in these areas.
Continued tourism growth
Kochi is known for its high heritage value, and contributes significantly to Kerala's tourism industry. It sees an annual tourism influx that equals about four times its population, of which 14 per cent accounts for foreign tourists, and reflects an annual increase of about six per cent. The city's vision of transforming itself into a tourist hub paves the way for steadily increasing demand for the hospitality sector and its allied industries.
In short, Kochi - which was earlier struggling to recover from an oversupply scenario - will see a massive revival due to creation of demand from these initiatives.
The writer is national director and head of operations - strategic consulting, JLL India. Views expressed are his own and do not reflect the newspaper's policies.
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