Investing in the Kochi real estate market is a wise decision. The city is one of the fastest-growing cities in India and it is also a top real estate market. The demand for rental properties is expected to be high in the coming years due to the influx of professionals demanded by the rapidly growing IT and allied industries. However, one cannot just invest in any property in Kochi. A property that will generate high rental returns must be carefully chosen by following certain tips.
Let us discuss these below:
1. Property location
The location of the property will determine the rentals it will earn. For high-return rental properties, one must look for localities that are already established as main hubs or those that have high growth potential. Investors can search for flats in Kochi in hubs of Kochi like Kakkanad or explore new locations like Edappally which have a potential for future growth. Tenants will usually choose locations that are easily accessible and have all the basic amenities and facilities.
2. Connectivity
The property should be well-connected to different parts of the city by road or rail using personal or public transport. Tenants usually look for a property that is easily reachable to and from their workplaces. The property should be close to or easily accessible from business districts, IT hubs, and important office locations. If they are not close, they should be easily reachable using public transportation.
3. Reputation of the developer
The Kerala real estate market is growing with many developers and builders wanting to make their mark. Choosing a reputed builder is the best way of safeguarding your investment. A reputed developer will have the best construction quality, facilities, and amenities. An investor cannot be spending money on repairs and maintenance within a short span of investing in the property. A tenant will always look for a property that is of good quality and is well maintained.
4. Social infrastructure
Educational institutes, schools, colleges, hospitals, and supermarkets are necessities tenants look for. The presence of these in close vicinity of the property increases the chances of tenants choosing the property. Owners can also charge a premium for the convenience of these properties ensuring a better quality of life.
5. Future growth and appreciation
With the growth of real estate investment in Kochi, many new micro-markets are being formed on the outskirts of the city. Nettoor and Maradu are such micro markets that are poised for development in the future due to their rapid urbanization. The properties in these upcoming locations are cheaper than those in the heart of Kochi. With the growth in physical and social infrastructure, the property prices and the rentals these markets command keep appreciating. By identifying and investing in reputed projects in Nettoor and Maradu early on, one can earn good returns in future.
High-return rental properties give a regular source of income. By identifying good properties at the right location investors can enjoy the benefits of additional income which will keep appreciating with time.
