Investing in the Kochi real estate market is a wise decision. The city is one of the fastest growing cities in India and 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 sought after by the fast-growing IT and allied industries. However, one cannot just invest in any property in Kochi. A property that will give high rental returns should be chosen carefully by following some tips.
Let us discuss these below:
1. Location of the property
The location of the property will determine how much rent it will fetch. For high-return rental properties, one should look for localities that are already established as prime hubs or have high growth potential. Investors can look for flats in Kochi’s hubs like Kakkanad or explore newer locations like Edappally that have the 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 private or public transport. Tenants usually look for a property that is easily accessible to 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 accessible using public transport.
3. Developer Reputation
The Kerala real estate market is growing with many developers and builders looking to make their mark. Choosing a reputed builder is the best way to protect your investment. A reputed developer will have the best construction quality, features, and amenities. An investor cannot afford to spend money on repairs and maintenance within a short time of investing in a property. A tenant will always look for a property that is of good quality and is well maintained.
4. Social infrastructure
Educational institutions, schools, colleges, hospitals, and supermarkets are necessities that tenants look for. Having these in close proximity to the property increases the chances of tenants choosing the property. Owners can also charge a premium for these property amenities to ensure a better quality of life.
5. Future growth and appreciation
With real estate investments on the rise in Kochi, several new micro-markets are coming up on the outskirts of the city. Nettur and Maradu are such micro-markets that are poised for future growth due to their rapid urbanization. Properties in these upcoming locations are cheaper than properties in the heart of Kochi. With the growth in physical and social infrastructure, property prices and rents in these markets are constantly rising. By identifying and investing in prestigious projects in Nettur and Maradu, one can earn good returns in the future.
High-return rental properties provide a regular source of income. By identifying good properties in the right location, investors can benefit from additional income that will continue to grow over time.