Kochi's Residential Real Estate Boom: Domestic Buyers Leading the Way
Kochi's residential real estate market has seen a major change, with domestic buyers now making up 60% of all sales a big shift from the time when non-resident Indians (NRI) dominated the market. This change shows a move toward people who live in Kochi and want permanent homes, leaving behind the days of investment-driven buying.
Changing Buyer Demographics
The people buying property in Kochi have changed a lot. Experts say that the mix has gone from 30% local buyers and 70% NRIs to 60% local buyers and 40% NRIs, with local buyers now leading sales. This change is because:
- More professionals and families are moving to Kochi’s IT hubs
- There's more interest in living in city centers in upscale developments
- Fewer NRIs are buying properties for investment
Builders like Trine Holdings and Asset Homes see this change clearly: “Back then, 80% of buyers were NRIs; now, less than 40% are,” says Ravi Jacob, Chairman of Trine Holdings.
Permanent Housing Over Speculative Investment
Unlike before, when NRIs bought apartments for rental income or long-term profits, today’s domestic buyers want to live in their homes. Signs of this change include:
- 90% Average Occupancy Rates in new projects
- Little subletting or empty spaces in new buildings
- More people choosing spacious apartment for families
This change shows a cultural shift. “Every buyer now is an end-user,” explains V Sunilkumar of Asset Homes.
Preference for Premium Properties
Domestic buyers are now focusing on 3BHK and 4BHK apartments costing over ₹1 crore. This trend fits with:
- Higher incomes in city areas like Ernakulam
- More space needed for hybrid work models
- Availability of top-notch amenities in luxury projects
Numbers show this trend:
| Year | 3BHK Registrations | 4BHK Registrations |
|---|---|---|
| 2023 | 858 | 285 |
| 2024 | 960 (11% increase) | 314 (10% increase) |
(Source: Kerala Real Estate Regulatory Authority)
Infrastructure and Economic Drivers
Several things are keeping this boom going:
- IT Sector Growth: SmartCity Kochi and tech parks bring in professionals who need modern homes
- Better Connectivity: Kochi Metro and Water Metro projects will reduce travel time and enhance connectivity
- Urbanization: More families prefer city living over standalone houses
“Houses are going down, while apartments are going up,” notes one developer.
Future Outlook
With local demand steady and NRI investments leveling out, Kochi’s market is set for long-term growth. Developers expect:
- More focus on 3-4 BHK homes
- Wider use of eco-friendly, smart-home technology
- Affordability property with luxury features
As Ravi Jacob says, “This change shows Kochi’s real estate market is growing up—faster than anyone thought”.