Rising interest rates and slowing growth may have dampened spirits across the country but Kozhikode (formerly Calicut) realty market is gearing up for another round of boom. The Kozhikode on the way to a new trend, would see the launch of around 15-20 projects in and around the city.
According to a study about the market, the industry has taken up projects after taking genuine demand into account. The demand is from actual customers whose housing needs are genuine and there is very little investment demand. Builders say rising interest rates and slowing growth may not affect demand. Moreover, like elsewhere in the state, Kozhikode also gets a large inflow of NRI money into real estate. However, the focus of the builders is on domestic demand, growing at a healthy rate.
Builders in Kozhikode have placed their hope on the growing importance of the city as an IT destination. In fact, many companies have started looking at Kozhikode seriously while deciding on their future investment plans. A Hungarian company has already announced its plans to open a centre in Kozhikode employing almost 1,000 IT professionals initially.
According to a study about the market, the industry has taken up projects after taking genuine demand into account. The demand is from actual customers whose housing needs are genuine and there is very little investment demand. Builders say rising interest rates and slowing growth may not affect demand. Moreover, like elsewhere in the state, Kozhikode also gets a large inflow of NRI money into real estate. However, the focus of the builders is on domestic demand, growing at a healthy rate.
Builders in Kozhikode have placed their hope on the growing importance of the city as an IT destination. In fact, many companies have started looking at Kozhikode seriously while deciding on their future investment plans. A Hungarian company has already announced its plans to open a centre in Kozhikode employing almost 1,000 IT professionals initially.
It is against this backdrop that the city is getting ready for a new jump. The rates for residential apartments are now in the range of Rs 2,500 to Rs 4,100 per square feet and rates for premium apartments within the city, especially in places like Mananchira and Nadakkavu, have gone up to Rs 4,100 per sq ft.
Expansion of Kozhikode airport, the growth of tourism and the potential of the city to emerge as a new IT destination are the aspects on which the builders are pinning hopes on. Taking into account the all-round development of the city, the builders have launched new projects.
The growth in general business in the city has also led to a boom in commercial space construction. There are about 40 builders in Kozhikode and its suburbs. They ensure that supply is kept in line with the demand. As a result, there has been a consistency in the rates for built-up space in both residential and commercial categories.
2 comments:
Hi Maneesh, Challa, Gopi,Baskar: appreciate this post and would appreciate to know a little about this group and its credo. I joined because I liked the post, thanks.
Good news!!!
Let Calicut grow!!!
Let the people in Calicut also grow!!!
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