KOCHI: The unrest in West Asia is beginning to echo through Kerala’s property market. Several builders in the state have recorded a noticeable rise in enquiries for homes from Gulf-based Malayalis over the past few weeks.
“There has been a clear spike in enquiries following the recent tensions in the Gulf. Particularly, in the mid-income housing segment,” said Edward George P, managing director of Imperial Homes and president of the Confederation of Real Estate Developers’ Associations of India (CREDAI)’s Kochi chapter.
A lot of the enquiries have been coming from countries such as Kuwait, Bahrain and Muscat. “While many of these enquiries are exploratory, the intent is clear. NRI Malayalis want a fallback option in these uncertain times,” said V Sunil Kumar, founder and managing director of Asset Homes.
Indeed, most enquiries are for projects in and around Kochi, which sees a perennial demand. “Apartments remain the preferred option. Localities such as Tripunithura and Kakkanad in Kochi, and Kazhakootam in Thiruvananthapuram are forever in favour,” said Sunil.
“Interestingly, enquiry calls are also coming in for homes in what aren’t your traditional high-demand locations like Kochi or Thiruvananthapuram. The NRIs were checking if we had projects in places such as Thodupuzha and Perinthalmanna,” he said.
Builders say this deviation in demand locations is not translating into an immediate expansion in projects, but it is unlocking insights that hadn’t been previously evident, they said.
“There isn’t a profound shift yet. In these locations, the preferred investment, unlike say Kochi, is for land. And many independent land parcels are available,” Edward explained.
At the same time, the cost of construction materials has also shot up by nearly 15% to 20% in view of the conflict. According to Sunil, the sharp rise in construction costs has had a subtle shift in buyer behaviour. “People are building less on their own and preferring branded apartments to avoid the volatility of cost changes,” he said.
Meanwhile, industry observers pointed out that while a spike in NRI interest for real estate safety nets back home during periods of unrest is not a new phenomenon, unlike before, Kerala’s property market has matured and is ready to absorb that anxiety into concrete demand. “If the Gulf was the preferred investment destination earlier, the unrest has shifted the attention back home, where ‘flat culture’ has become more prominent, Edward highlighted.
“Now, even NRIs are looking to rent in the Gulf and invest in real estate in Kerala.”