What Are The Challenges of Finding Villas or Apartments In Kerala?

"Investing in Real Estate is all about Numbers" – Dolf De Roos"

The land of Ayurveda, the vast coconut groves, the lush greenery, the pristine backwaters, the magnificent hills, and the scenic beaches – Welcome to Kerala. Legend has it that Parasurama, an incarnation of Lord Vishnu, created this place for his devotees to live peacefully. No wonder Kerala is called 'God's Own Country.'

Natural beauty apart, it is India's most literate state, with high scores on socio-economic indicators. Health & education infrastructure are top-notch. The state attracts millions of local and foreign tourists and consistently tops the list of states in foreign remittances. The people of Kerala are extremely progressive and enjoy a high standard of living. Due to its inherent advantages, a lot of people, especially NRIs, have shown a massive interest in buying land & property in Kerala. What are the factors that potential buyers must look into before they take that plunge? What are the challenges of finding apartments and villas in Kerala? Read on to know!

High Property Prices in Big Cities:

The demand for an apartment or a villa is primarily in the bigger cities of the state because they offer a cosmopolitan lifestyle to the upwardly mobile crowd. Kochi, with its Metro rail, malls, hotels, and an international airport, remains the top choice for property investors.This has led to a massive surge in property prices in Kochi. According to a market survey conducted by major banks & housing finance companies, prices have shot up almost 60-70% over the past 6-7 years. A 3/4 BHK apartment by a premium builder in an up-market area like Marine Drive costs at least Rs.2.50-3.00 Crore.

The smart city tag, its emergence as an IT hub, huge NRI demand, and a good standard of life compared to other metropolitan cities have all contributed to the rise of Kochi. Greater employment and business opportunities in the city, high disposable incomes, and easy access to housing finance have led to a boom in the Kochi property market.

The Small vs. Large Conundrum:

Everybody wants to own a home. It's not just a financial decision but an emotional one too. Both apartments & villas have their respective merits and demerits.

• Apartments are multi-storied structures that offer units of different sizes; villas are large & independent houses.
• Apartments can be found in & around city centers; villas are generally situated in the suburbs.
• Apartments are affordable & convenient to manage; villas provide you with privacy & luxury but can be expensive to maintain.
• Apartments cater primarily to middle-class & upper-middle-class sections, but villas cater primarily to rich & high net worthy individuals.

Often it's a compromise that you have to make while buying an apartment or a villa. Ultimately it's your requirements, objectives & convenience that should drive the decision.

Advantage of Apartments

• Affordable & budget friendly
• Suitable for nuclear families
• Easy to maintain
• Safety is assured
• Situated close to city centers
• Easy to rent

Disadvantage of Apartments

• Smaller in size
• Unsuitable for large families
• Low luxury quotient
• Not possible to customize
• Possibility of overcrowding
• Managing tenants is cumbersome

Advantages Villa Projects

• Ensures luxury living & privacy
• Large & independent houses
• High on prestige quotient
• Easy to customize the space
• Provides ownership of land

Disadvantages Villa Projects

• Very expensive
• Difficult to maintain
• Low rental yields
• Difficulty to dispose of the property
• Situated in distant suburbs

Devil Lies in the Details

A recent survey had some interesting findings. It said that nearly two-thirds of buyers regret their decision soon after buying a home. This is mainly because the decision was purely emotional & impulsive. Once the euphoria of the new home fades, you are faced with reality. Be it a flat or a villa, do not compromise on the following factors before you sign the papers:

• Clear property titles (as verified by legal professionals)
• Reputation and track record of the builder
• Quality/age of construction and the amenities offered
• Location & neighborhood – safety is paramount; beauty comes next
• Negotiate hard – a group of buyers can get together to avail discounts
• Availability of finances, tax benefits & property registration

Final Thoughts

Kerala is one of the most beautiful states in India. It is endowed with natural beauty and a rich cultural heritage. You feel deeply connected to nature as soon as you set foot in this paradise. People are warm & friendly too. No doubt, it is one of the best places to own a home and lead a peaceful life. Home is a very emotional possession to most people. You live with your family, build sweet memories and then pass it on to your children. But investing in property has to be a sensible, logical & rational choice to avoid any regret later!