The real estate sector in India is expected to grow at 30% per annum. To achieve such growth, real estate in India would require huge investments over the next few years. By 2015, it is projected that the market size would grow to Rs. 3- 4 lakh crore.
Enabling government policies are triggering the growth of real estate in Kerala which will in its turn trigger infrastructure development and economic growth of the state as a whole. This has fuelled the demand for real estate in cities like Thriuvananthapuram and Kochi to name a few. These cities continue to attract interest from IT and ITES companies that either are establishing a base here or are looking to expand, which will give rise to tremendous real estate development in Kerala.
The outlying suburban locations of most cities like Kochi are witnessing development activity due to easier availability of land and this facilities the real estate sector no end. Changing demographics, rising disposable incomes and fiscal incentives have provided huge demand for housing among these sectors.
Further, nuclearization of Indian families and low interest rate regime has accelerated the demand for mortgages and for fresh housing thus giving rise to more flats and apartments. The demand had been aided by the ease in documentation and formalities of property registration in India.
Aided by the relaxation of the realty sector FDI norms, the Kochi flats and housing projects are experiencing enhanced interest from NRIs. The government has further helped by permitting banks to advance home loans to NRIs.