Reasons Why Kerala Real Estate is Turning Attractive to NRIs
Real estate has always been a productive option to make large investments. This has now turned out to be true with Kerala as especially Kochi real estate market has opened itself to prospective buyers, or NRIs. One of the most compelling reasons that led to this development was the Nedumbassery International Airport. And now, everything with Kochi is in a developing stage. Classified as a Tier-II city, Kochi is also the commercial capital of Kerala. The city has grabbed almost everything that buyers would love to ally with.
The rapidly growing IT industry and increased job opportunities make the city alluring from a real estate perspective. IT hubs such as Technopark, Infopark and Cyberpark contribute much to these booming job opportunities. Kerala is making an ambitious venture to revolutionize the job market, estimating 90,000 openings by the year 2020.
Other physical infrastructures that make Kochi more attractive to NRIs are the Metro Rail network to make the transportation easier, mobility hubs, national highways, development of the electronic park in Amballur village and moreover the tag of a smart city. Upgrade of the sea port has also brightened the prospects of realty sector in the city. Suburban areas such as Edappally, Vytilla, Kundannoor, Palarivattom are advancing with the flyover projects or metro projects. Tripunithura, another suburb of Kochi is also preferred by home buyers.
The year 2019 has been the revival tenure for realty industry and so is considered as the best time for NRIs to invest in the market which will be a brilliant move.
One other factor that is considered to invest in real estate is the ROI. Returns from real estate properties are high when compared with other sectors. Better rental yields are offered in the properties along the major locations across Kerala such as Calicut, Cochin and Thrissur.
Other places of interest are Kollam, Kannur, Palakkad, Trivandrum and Kottayam. Trivandrum, being Kerala’s capital city has undergone a lot of developments recently. IIM in Kozhikode also plays a major role in training young managers.
The rapid growth in realty sector can also be attributed to the easy availability of finances after announcing smart city. RBI approved banks and most housing finance companies offer specialized home loans up to 80% of the value of property to NRIs. It has to be repaid through remittances or through the funds held in NRO/NRE/FCNR accounts. They can also use the rental income from the property financed for repaying the loan.
New regulatory reforms by the Government such as RERA, GST, etc. helps to make the realty sector more organized, which in turn has become very beneficial for the real estate investors.
No doubt the Kerala real estate is seeing one of the rapid economic growth outbursts in this season. The city now holds almost all factors that it takes to pump a healthy real estate sector. As you can see the pace at which the real estate sector of Kerala is prospering, it’s the best and high time NRIs can think of making large investments here.