Kochi and Thiruvananthapuram, Kerala's two major cities, possess a combined office space of 14 million square feet, the highest among tier-II cities, according to a report by the Confederation of Real Estate Developers' Associations of India (CREDAI) Kerala and Cushman & Wakefield. Thiruvananthapuram and Kochi rank among the top 10 emerging real estate markets, with significant potential in areas such as infrastructure, income levels, and housing affordability. Kerala's real estate sector is poised for substantial growth, attracting corporate occupiers and developers due to favorable government policies, a skilled non-resident Keralite workforce, a talent pool, and improved infrastructure.
The report also highlights other cities in Kerala, such as Kozhikode, Thrissur, and Palakkad, taking strides in real estate development, making the state attractive for office occupiers seeking alternatives to major cities.
Despite growth opportunities, the state faces challenges, including land constraints, ecological regulations, land ownership restrictions, and high stamp duty and registration charges. To boost vertical development, the report recommends increasing the floor-space index and providing infrastructure improvements.
