1. Kozhikode – The city of Zamorins
A real estate market analysis
Elective-Real estate Anjith Augustine SPA Urban design
2. FUNCTIONAL CHARACTER
• TRADE & COMMERCE
• SERVICE SECTOR( TERTIARY WORK CENTRES)
ECONOMIC SCENARIO
• WELL OFF WITH MONEY FROM NRI’S AND WORKING
CLASS SECTOR
DEVELOPMENT AUTHORITIES
Development Authority- Kozhikode Corporation
Town & country planning Dept. kozhikode
Development Guidelines- Masterplan 2001
KMBR
KOZHIKODE CITY – GROWTH POTENTIAL
• 3rd largest city in Kerala
• Trade & business hub of north Kerala
• High literacy rate
• RANKED SECOND AS THE BEST CITY TO LIVE IN (ASSOCHAM STUDY) considering parameters such as
health, education, environment, safety, public facilities and entertainment.
• Best infrastructure in place
• Land availability
• High quality educational facilities with one IIM & NIT, medical college
• The proposed monorail
• New projects like 2 cyber parks, subcity at Kinaloor, industrial investments, BITS knowledge park etc.
• Large investments from NRI’s.( 70% of construction someway related to NRI)-CREDAI
3. CITY STUDY
CURRENT POPULATION-2,074,778
PROJECTED POPULATION 2021- 2,282,255
GROWTH RATE- 10%
SOURCE: KERALA SUSTAINABLE DEVELOPMENT REPORT
Year Market condition Rates or cases
2006 Market is good and is up for a boom Rs.1000cr business ( housing)
MARKET STUDY FOR THE PASTmortgage crises effects. But the industry held well in
2007 sub-prime 10 YEARS Rs.1500cr total 500-600cr Hsng
Calicut
2008 Despite the fall of the market by mid, the Kozhikode market still Rs.500cr business( housing)
was active, because of high purchasing power of NRI. Launches of hilite happened even
during dip.
2009 The market caught back by august Low rentals for commercial as demand
is less. Many office spaces vacant
2010-11 Market on a high Decent growth and good returns
2012 Market slow as NRI investment is low. Reasons- delays and
increase in capital investment.
4. Expert opinions…
“Kozhikode has not witnessed an artificial demand for housing. Buyers also respond
positively to the offers,” says K.V. Haseeb Ahamed, State treasurer of CREDAI.
"Traditionally, the share of the non-resident Keralites has remained around 60-65%,"
says M A Mehaboob, director of Hilite Builders.
"Speculative investment for short-term gains is practically absent in Kozhikode," says
Nityanad Kamath of Ace Structurals
5. CITY EVOLUTION AND THE NEW DEVELOPMENT DIRECTIONS
To Bangalore
Old bypass
Mavoor road
New developments
First Rly station
Road
Rly line New bypass
Proposed metro
New Development axis
Kannur road
First settlements
City developments
6. UNDERSTANDING THE ASSET CLASSES OF REAL ESTATE SECTOR
Residential – apartments and plotted/villa
housing market across economic classes
The market is currently focusing mainly on
apartments for working class MIG and a
few HIG. Villas are not picking up. The
current projects re of mixed use in nature.
Factor Result
Capital Value INDIVITUAL -1000-1800/SQFT 3BHK 2300-
3000/SQFT VILLA 3500-3700/SQFT
Circle Rate NA
Rental Value 8-15/sqft/mnth
Quantum of existing stock 56 apartments,7 villas,1 integrated township
Quantum Of Vacant Stock NOT AVAILABLE
DEMAND/SUPPLY SYSTEM SUFFICIENT DEMAND SUPPLY TO SUSTAIN THE MARKET
Competing Project
Profile Of Buyers MIDDLE CLASS SERVICE SECTOR/ NRI
Mode Of Transaction CHEQUE/CASH- CASH PREFERED BY NRI
Method Of Transaction SHORT LEASE
Impact Of Social/Physical Infrastructure On BUSINESS CAUGHT UP DUE TO MONORAIL AND
Projects CYBERPARK
7. UNDERSTANDING THE ASSET CLASSES OF REAL ESTATE SECTOR
Commercial – Office developments under
private control, which are actively rented and
transacted. Mavoor road is the prime focus
commercial area in the city. These are mostly
office spaces rented out early days. New office
areas are towards the bypass and new bypass.
The movement is not very fast.
Factor Result
Capital Value 500-1000/sqft
Circle Rate NA
Rental Value Rs 80-130/sqft/mnth
Quantum Of Existing Stock NA
Quantum Of Vacant Stock Office spaces inner spaces are still unoccupied
Demand/Supply System Meeting demand
Competing Project
Profile Of Buyers NRI, MUSLIM MAJORITY WHO HOLD THE MARKET
Mode Of Transaction CASH
Method Of Transaction LONG LEASE/short lease
Impact Of Social/Physical Infrastructure On Projects GOOD AS NEW DEV. PROJECTS ARE COMING AND
THE CITY IS EXPANDING IN TERMS OF NUMBER.
8. UNDERSTANDING THE ASSET CLASSES OF REAL ESTATE SECTOR
Retail – organised retail properties and high
street retail properties. Mavoor road is
undergoing fast transformation in built to
accommodate more malls and retail outlets of
branded stores. Areas like old and new bypass
are the recent prime spots.
Factor Result
Capital Value 3000-6000/sqft
Circle Rate NA
Rental Value Rs 80-130/sqft/mnth
Quantum Of Existing Stock 9 MALLS
Quantum Of Vacant Stock NIL EXCEPT FOR SOME WHICH ARE INNER AREAS
Demand/Supply System MEETING THE DEMAND
Competing Project
Profile Of Buyers MUSLIM MAJORITY AS THEY HAVE THE MONEY.
INVESTORS FROM OUTSIDE
Mode Of Transaction CASH/CHEQUE
Method Of Transaction DAILY/SHORT/LONG LEASE
Impact Of Social/Physical Infrastructure On Projects GOOD AS NEW DEV. PROJECTS ARE COMING AND
THE CITY IS EXPANDING IN TERMS OF NUMBER.
BIG BRANDS ALLOWED DURING CONGRESS.
9. UNDERSTANDING THE ASSET CLASSES OF REAL ESTATE SECTOR
Leisure and Entertainment – Cinema, theatre, theme
parks, any other entertainment facility being run
commercially. City used to lack in these field until recently
when all cinemas shifted to multiplexes. Other
entertainment facilities are less like clubs, multi-gyms etc
Factor Result
Capital Value
Circle Rate NA
Rental Value
Quantum Of Existing Stock 3 MULTIPLEX, 7 CINEMA
Quantum Of Vacant Stock NIL
Demand/Supply System GOOD FOR CINEMA, NOT FOR OTHER LEISURE
FACILITES..
Competing Project
Profile Of Buyers ALREADY ESTABLISHED INVESTORS WHO HAVE
BEEN RUNNING THESE SECTORS.
Mode Of Transaction CASH/CHEQUE
Method Of Transaction LONG LEASE
Impact Of Social/Physical Infrastructure On Projects THE INMIGRATION OF MANY YOUNG NON-
KERALITES FOR STUDY AND WORK HAVE OPENED
UP ENTERTAINMENT SECTOR
10. UNDERSTANDING THE ASSET CLASSES OF REAL ESTATE SECTOR
Industrial – Flatted factories, standalone developments,
industrial estates. Earlier the city used to be industrial hub
with major industries like gwalior irons, CW tiles, shipyard,
wood industry etc. but now the market is completely down
and the sites are going for complete rewamp.
Factor Result
Capital Value NA
Circle Rate NA
Rental Value (KINFRA)20-30/sqft lease hold
Quantum Of Existing Stock GWALIOR IRONS (BIRLA), COMMONWEALTH TILES,
KALLAI WOOD FACTORY, STEEL COMPLEX, KINFRA,
KINALOOR INDUS CENTRE.
Quantum Of Vacant Stock GWALIOR IRONS
Demand/Supply System NOT INVESTING IN INDUSTRIES
Competing Project
Profile Of Buyers SMALL SCALE INDUSTRIES AND STAND ALONE
INDUSTRIALISTS
Mode Of Transaction CASH/CHEQUE
Method Of Transaction OWNERSHIP/LONG LEASE
Impact Of Social/Physical Infrastructure On Projects THE NEW KINALOOR COMPLEX IS A BOOST TO
OTHERWISE DEAD SECTOR
11. UNDERSTANDING THE ASSET CLASSES OF REAL ESTATE SECTOR
Institutional – schools, higher education, universities, hospitals,
religious institutions, government institutions and government
offices. Kozhikode is known for its high literacy rate. But new
private interests are coming in with high facility residential
schools. One of its kind in kerala.
Factor Result
Capital Value 800-1000/sqft (Aided school)
Circle Rate NA
Rental Value NA
Quantum Of Existing Stock 170 SCHOOLS,29 PROFESSIONAL COLLEGE
INCLUDING NIT IIM & MED COLLEGE
Quantum Of Vacant Stock NIL
Demand/Supply System GOOD
Competing Project
Profile Of Buyers RELIGIOUS TRUSTS,PVT INVESTORS ( RES SCHOOLS)
Mode Of Transaction CASH/CHEQUE
Method Of Transaction OWNERSHIP
Impact Of Social/Physical Infrastructure On Projects GREATER AWARENESS AND DEMAND FOR QUALITY
EDUCATION HAS PUSHED THIS SECTOR TO THE
FOREFRONT. BUT STILL DOMINATED BY THE
RELIGIOUS INSTITUTIONS.
12.
13. MICRO MARKETS AND LAND MARK REAL ESTATE PROJECTS
CONFIDENT
A MALL/MULTIPLEX/R
ES MIXED USE
MOBILITY HUB
B COMMERCIAL
6 COMPLEX
1 7 10 C INTER TRANSIT HUB
WITH
MONORAIL/COMM
9 ERCIAL
B D HILITE HILLS
INTEGRATED
8 TOWNSHIP
5 A 11 C E CYBER CITY
12 F
KSRTC TRASPORT
COMPLEX MIXED
3 F USE ( GOVT )
D E
2
4
14. MICRO CHARACTER MARKET TREND
MICRO MARKETS
MARKET
Real estate micro marketsDISCARDED onTHE FISHERMAN COMMUNITY AREA. NOT PRIME such / pricing/ physical
1.BEACH AREA THE AREA IS MOSTLY
based AS certain homogeneous character NOT GOOD
area/ nature of activity say CBD/ secondary markets, industrial estate etc. Attempt should be
2. CITY BEACH CAME TO REAL ESTATE FOCUS VERY RECENTLY BY THE COMING UP OF NEW FLYOVER GOOD
made to identify micro markets in such a manner that they represent the core activity not all
AREA CONNECTING TO CITY. MANY RESIDENTIAL APARTMENTS HAVE COME UP ON BEACH FRONT
activity/ product. THE CRZ RULES SHOWING THE DEMAND.CERTAIN PARTS OF OLD CITY.
VIOLATING
3.CBD THE CORE CITY AREA WHERE THE MAIN COMMERCIAL FUNCTIONS ARE IDENTIFIED. MALLS, VERY GOOD
OFFICES, SHOPPING CENTRES ETC FEATURE HERE. ALMOST REACHED SATURATION IN TERMS OF
LAND AVAILABILTIY AND HENCE IS GOING FOR RE DEVELOPMENT. TREND IS TO POOL LAND
PROPERTIES TO BUILD MALLS AND SHOPPING CENTRES.
4.KALLAI AREA PART OF THE OLD CITY AREA. DISCARDED IN TERMS OF REAL ESTATE SECTOR AS IT FEATURES NOT GOOD
MAINLY INDUSTRIAL USES. ALSO KNOWN FOR WOOD LOGGING CENTRE.
5. DREAM CITY REGION ALONG THE CANOLI CANAL. ENVISAGED AS A DREAM CITY URBAN AREA BY 80’S EXCELLENT
AREA MASTERPLAN. BUT DIDN’T COME UP DUE TO ENVIRONMENTAL REASONS. BROUGHT TO FOCUS
NOW WITH MAJOR REAL ESTATE DEVELOPMENTS HAPPENING ALONG THE CANAL. MOSTLY
COMMERCIAL MALLS AND RESIDENTIAL MIXED USE.
6. WEST HILL ONE OF THE RESIDENTIAL HUBS OF THE CITY. MIDDLE CLASS HOUSINGS. BECAUSE OF THE GOOD
ELEVATED TOPOGRAPHY AND DISCONNECT FROM THE CORE CITY NOT A BIG REAL ESTATE
TARGET. BUT APARTMENTS ARE COMING UP.
7. AREA WHICH CAME TO FOCUS NOW AND IS PREFERRED AS MAIN CENTRES FOR RESIDENTIAL GOOD
ERANJIPALAM APARTMENTS.
8. NEW BYPASS THE PRIME REAL ESTATE AREA CAME DUE TO THE COMING OF THE NEW BYPASS TO KANNUR. EXCELLENT
THE SPECULATION BASED ON THE COMING OF CYBER CITY, MOBILITY HUB AND HILITE HILLS
INTEGRATED TOWNSHIP ALONG HAS MADE THIS AREA THE MOST WANTED.
9.MALAPARAM RESIDENTIAL SUBURB. KNOWN FOR ITS CHEAP RENTAL HOUSINGS. FAST DEVELOPMENT DUE TO GOOD
BA THE NEW BYPASS AND GOOD CONNECTIVITY.
10.SILVER A RESIDENTIAL SUBURB. REAL ESTATE APARTMENTS ARE FAST COMING UP IN THESE REHIONS AS GOOD
HILLS THE PROXIMITY TO CITY AND THE NATIONAL HIGHWAY. PREFERRED BY WORKING CLASS
11. MEDICAL WAS NOT A DEVELOPED AREA EVEN WITH THE PRESENCE OF A MEDICAL COLLEGE. BROUGHT TO EXCELLENT
COLLEGE FOCUS BY THE COMING UP OF BUS TERMINAL AND THE PROPOSED MONORAIL. NOW A PRIME
REAL ESTATE AREA.
16. NEW DEVELOPMENTAL ACTIVITES AND THER SCALE/NATURE
Cyber park- along the new bypass road
Kerala's tallest residential 40 storeys
Mavoor road
New malls/multiplexes/mixed uses- old bypass road
Hilite hills. South indias first of its kind integrated
township. New bypass road
17. Builders which are not specific to
Kozhikode
Builders which are into commercial
other than residential
Builders only indulged in residential
market
Builders which are based in Kozhikode
and which are focused on Kozhikode
and its precinct market only.
• There are already established local builders
who have made sufficient profit.
• This has attracted other established builders
to the city to invest.
• Most of the investors are into residential
• Recently investments have started in
commercial and hospitality.
18. FINDINGS
• Areas of high investment are in residential sector especially with a mixed use typology
preferred due to the peculiar linear city condition of Kerala.
• Integrated townships more likely to come along the new bypass as facilities are less in this
area.
• Villas and villaments are not adequately marketed enough to catch the clients as villas are a
most preferred typology in all cities like cochin because of the large plot house culture of
Keralites.
• Office commercial wont get a boost as the large office spaces in the cyber park are open for
allotment.
• Retail boom is what the city will witness in the next few years and will need to catch no the
potential. Malls/multiplexes/retail branded stores are flowing into the city, which is bound to
increase with the FDI policy.
• Hospitality sector including hotels of business class and above are found short in the study
where there is good demand in the future
• Industries are surely moving out of the city and definitively not good for investment
• Market is focusing on a linear way as the cities in Kerala as always grown. Hence with the
coming of monorail land other fast movement options the city is bound to expand soon to
places as far as 20 to 30 km away. Now the city limits itself to 15 kms.
• Potential of the constantly flowing NRI funds makes sure the market is not affected much by
the ups and downs as we have witnessed in the past depression.
• Hence Kozhikode primafacia is definitely a good place for investment.
19. REFERENCES
Interview with Asha Thomas- real estate consultant
Interview with P.C Augustine- chief manager, Regional Credit hub, Federal bank
Interview with Praveen Jacob- commercial manager, Confident builders
Confederation of the Real Estate Developers Association of India (CREDAI) Kozhikode chapter.
Http://www.Stampdutyregistration.Com
Http://www.Beyondsquarefeet.Com/pdf
Http://iimklive.Com/index.Php
Http://www.Lemonhunt.Com/
Www.Hindu.Com
Www.Timesofindia.Com
Http://www.Bharatestates.Com/
Www.Economictimes.Com
Www.Hilitehills.Com
Www.Propertydays.Com
Www.Helloaddress.Com
Kerala urbanization report
Census of india 2011
