KOCHI: Kochi’s real estate market witnessed growth across office, retail and residential segments during the first quarter of 2026, according to a report released by property consultant Cushman & Wakefield.
The office market recorded gross leasing of 0.11 million sqft during the January to March period, marking an 18% increase from the previous quarter. Leasing activity was led by the suburban market, home to major IT hubs such as Kakkanad, which accounted for nearly two-thirds of the demand.
Flexible workspace operators emerged as the largest contributors to office leasing, accounting for 37% of the total activity during the quarter. The report noted that the city’s office stock stood at 9.7 million sqft at the end of March, with another 1.46 million sqft expected to be added by 2028.
“Kochi has positioned itself as one of the leading Tier-II office markets, combining scale, quality and strong leasing momentum,” said Veera Babu, executive managing director, Tenant Representation-India, Cushman & Wakefield.
“The city has 9.7 million sqft of predominantly Grade-A office stock, with gross leasing volumes increasingly aligning with Tier-I cities. Demand remains robust, led by suburban IT corridors, flex operators and an evolving GCC ecosystem, supported by a deep and skilled talent pool,” Veera said.
The retail segment also reported healthy activity. Leasing touched around 42,000 sqft during the quarter, with main streets accounting for 96% of the transactions. Department stores (58%) and fashion brands (39%) led demand. Domestic brands accounted for 77% of leasing, while international brands held 23%.
Rental values continued to rise across key commercial corridors. Panampilly Nagar recorded the highest annual increase at 19%, followed by Edapally-Vyttila Bypass corridor at 16%. Vacancy levels in Grade A malls remained low at 4.5%.
In the residential sector, around 550 housing units were launched during the quarter. More than half of these were in the high-end and luxury categories, indicating continued developer focus on premium housing.
The report also pointed to steady price appreciation across the city. Capital values in high-end projects in the Central Business District (i.e. MG Road, Marine Drive, Panampilly Nagar) and off-CBD (i.e. Edappally, Padivattom, Palarivattom, Nettoor, Vallarpadam) locations rose by 11 to 13% year-on-year, while suburban markets (Maradu, Kalamassery, Kakkanad, Smart City, Cheranallor) recorded growth of around 10-11%.
The findings indicate sustained activity across Kochi’s major real estate segments, supported by ongoing infrastructure development and a steady pipeline of new projects.
“Kochi offers occupiers a scalable and cost-effective alternative to larger metropolitan markets, making it an increasingly attractive destination for expansion and long-term growth. The city’s balanced urban environment, improving social infrastructure and relatively better quality of life compared to larger metros are also emerging as important factors strengthening occupier interest and workforce retention,” Veera said.
Flexible workspace tops
Flexible workspace operators emerged as the largest contributors to office leasing, accounting for 37% of the total activity during the January to March quarter.
In the residential sector, around 550 housing units were launched during the quarter. More than half of these were in the high-end and luxury categories
