Your Guide to Trivandrum Residential Real Estate for NRIs
Trivandrum's rapid growth as South India's top real estate spot offers NRIs great chances, mixing Kerala's cultural comfort with 15-20% annual appreciation near infrastructure projects like Vizhinjam Port. Let's explore this strategically.
Step-by-Step Buying Process for NRIs
- Remote Verification: Trusted developers now offer live walkthroughs via WhatsApp/Zoom, no physical visits needed. Check K-RERA registration certificates first to avoid unregulated projects.
- Document Flow: Submit passport, OCI card, and overseas address proof digitally. Use a Power of Attorney for signing; most banks accept this for loan processing.
- Payment Mechanics: Transfer funds via NRE/NRO accounts under RBI's Liberalised Remittance Scheme. Foreign remittances require Form 15CA/CB, your Indian CA handles this smoothly.
Tax Considerations That Impact Your Returns
- TDS Trap: Buyers must deduct TDS on property sales over ₹50 lakh. File ITR-2 to claim refunds.
- Capital Gains Reality: Sell before 2 years, Pay short-term tax at your slab rate. Hold longer for indexation benefits, slashing long-term tax to 20.8%.
- GST Advantage: New properties under construction qualify for 1% GST (vs 5% for resale). This alone boosts ROI by 3-4% annually.
Financing Options Beyond Common Myths
Contrary to rumors, SBI and HDFC offer NRI home loans up to 80% of property value at 8.5-9.2% interest. Repayment via NRE accounts avoids forex risks. Many Middle East NRIs use rental income from existing Indian properties to fund new purchases, creating self-sustaining portfolios.
ROI Projections: New vs Resale Reality Check
| Factor | New Property | Resale Property |
|---|---|---|
| Value Growth | 18% near Technocity (2025) | 12-15% in established zones |
| Rental Yield | 4.5% (90% occupancy) | 3.8% (maintenance costs) |
| Timeline | 2-year wait but RERA-guaranteed | Immediate possession |
Kazhakkoottam apartments show this: A ₹65 lakh new unit appreciates to ₹76 lakh by 2026 versus ₹72 lakh for comparable resale.
Top 3 NRI-Favorite Neighborhoods
- Kazhakkoottam & Nalanchira: IT pros' magnet near Technopark, rents hit ₹18,000/month for 2BHKs. New projects here leverage K-Space Park job surge.
- Sasthamangalam: Premium resale hub with good returns. NRIs pay 10% premiums for turnkey homes, ideal for future retirement.
- Vizhinjam Radius: Land parcels near the international port offer 20%+ growth potential. Savvy investors enter early before Phase 2 completion.
NRIs now make up 35% of Trivandrum's high-end buyers. This isn't just a guess but a demand from professionals hedging against global inflation. Pair new properties with K-RERA protection for stress-free wealth building. Your Kerala legacy starts with that first strategic click.