Heavenly realty

There are a few commodities that will always see immense demand in Kerala — rice, coconut and fish, and gold and land. While the state's legendary cuisine is founded on copious consumption of the former grouping, its residents, the Malayalis, think of the latter as the foundation stone of wealth.

Far from being ascetic in a place known as ‘God's Own Country', its people are more wont to adhere to Gordon Gekko's aphorism, ‘greed is good'. The desire to buy gold and to acquire land has become so intrinsic to the Malayali ethos, that it rises above ordinary aspiration to become extraordinary ambition.

This love affair with land is neither new nor novel, and a host of reasons — historic and contemporary — can be attributed to the amazing reality that is Kerala's realty.

Common motivators

Social status is a universal driving force for land purchase anywhere in the world, but in Kerala, this is coloured by an enormous emotional quotient. It is a motto instilled at birth that the Malayali man must own a home. Some day, he must ensure that his ageing parents are repaid adequately, that his family sees his breadwinning role as successful, that his daughters are married off handsomely, and that his sons take over possession — and management — of land when it is their turn. When he is old, his sunset years must be spent in peace which he realises only on his own piece of land.

By itself, this obsession with owning land was enough to raise prices and keep them growing for years on end, but in the modern context, a built bungalow or apartment is considered just as important as land. And what this means for Kerala's property market is steadily increasing prices, ranging between absurd and astonishing. In many parts of Kochi, for instance, prices rise almost daily.

There are several other factors at play in what is now established as one of India's evergreen hotspots. For starters, it is a land that is truly deserving of long-term investment. With long stretches of shore, three climatic belts, 44 rivers, a network of lakes and canals, and notable biodiversity, Kerala cultivates a wide range of agricultural produce, such as coconut, tea, coffee, rubber, cashew, spices and 600 varieties of rice. Not only have these been traded since the 14th century, but nearly half the population is still dependent on agriculture for livelihood.

Although Kerala is a small coastal state, it has three international airports and superior seaports. Most cities and towns have rail connections, and every village is connected by road. Besides, every village in Kerala has a bank.

Kerala's people are often ranked among the best in the nation, and sometimes, beyond. It is considered the healthiest, most literate, and most gender-equitable place in Asia, almost matching the developed world's indices. It is also the least corrupt state in India.

Apart from traditional factors, the exponential rise of land value in Kerala over the last ten years, especially in Kochi, is also attributed to speculation. When property value increases by sheer speculation, it forms the phenomenon called ‘the bubble'. While speculators make profits out of an artificially-induced hype, and land prices remain exaggerated by manipulation, the market is expected to stagnate, if not crash. Analysts have long stopped holding their breath though, as Kerala's bubble shows occasional signs of collapsing, but regains rotundity within weeks.

However, land scarcity in Kerala is neither hype nor exaggeration, and sooner or later, there will no longer be any left.

New avenues

Industries have given a new thrust to the property market. Just as new IT parks and firms are being planned or launched, domestic and multinational firms are opening new branches and showrooms across Kerala. Hence, landowners and property dealers can look upon continued growth due to opening up of new avenues and opportunities. Earlier this month, the Kochi Smart City project held its groundbreaking ceremony, with Kerala's Chief Minister, Oommen Chandy, and Group CEO of Dubai's Tecom Investments, Abdul Latif Al Mulla, in attendance. "We are committed to create 90,000 jobs. It will attract FDI and talented people to the state, and create the right opportunities for many start-ups," promised Al Mulla.

Tourism continues to mark its influence on realty too. Globally renowned for its arts, aestheticism, and Ayurvedic healing, properties located close to Kerala's beaches, malls, museums and resorts are in much demand, and the field is considered relatively risk-free. In August, Malayali investor Ravi Pillai agreed to purchase Hotel Leela Venture's property in Kerala for a hefty Rs5 billion (about Dh374 million).

Considering the current level of public and private sector investments in various spheres, it is safe to assume that the need for residential, commercial and leisure space is rapidly on the rise, with prices to match. Not only will land continue to command a premium, but also joining the fray are apartments, villas, and town houses, available in various stages of development.

Kerala has always been seen as a great place for property investments. Moving above its current ranking, it is now befittingly considered heavenly.
 

KOCHI
Global tourist hotspot

No other Indian city is as well-connected to the world by air, road and sea, as Kochi (Cochin). The commercial and tourism capital of the state is an amazing juxtaposition of beaches and business parks, villages and villas, green landscapes and blue backwaters, old forts and newfound fortunes.

The Cochin Port is one of the busiest in India, and its International Container Transshipment Terminalthe largest. The Cochin Shipyard is the biggest ship building facility in the country, and Kochi Marinais India's first.

Apart from being the business capital of Kerala, Kochi is one of the largest and most important cities in India.

The 41.7-hectare Cochin Special Economic Zone (CSEZ) is ranked the fourth most important in thecountry, and the 40.5-hectare Infopark Kochi(housing 75 companies which jointly employ around 15,000 people) is currently expanding by another64.7 hectares. Construction has begun at the28.3-hectare Cyber City Kochi.

Kochi is home to the International Pepper Exchange, and various Indian government establishmentssuch as the Coconut Development Board, SpicesBoard, Coir Board, and Marine Products ExportDevelopment Authority.

— I.S.