KOCHI: Medical tourism has pushed up Rentals in Kochi, mainly fuelled by the mushrooming of hospitals with high-tech facilities.
With the commencement of projects like Kochi Metro, Smart City and Infopark second phase, the rental market in Kochi is likely to witness another boom, industry experts feel.
“The rental market in the city has been witnessing a spurt in rates over the past three years. The major reason for this can be attributed to the opening of hospitals with modern facilities. When treatment requires stay of a couple of months in the city, we have been receiving calls from customers for availability of apartments on rent. Now, owners are able to get 60-70 per cent of the EMI amount through rent,” said Siraj Mather, Managing Director, Asten Realtors.
The average rent within the city for a single bedroom apartment is Rs 9,500 per month, which was Rs 6,000 three years ago. “Rents have touched Rs 1 lakh per month for premium apartments in the city. As the city has been improving in terms of providing better infrastructure facilities for the past few years, people from all parts of the state want to move in. This has resulted in a hike in rental rates and rates will only move north,” said Zachariah George, Project Head, Tata Realty and Infrastructure Limited.
According to CREDAI Kochi former president John Thomas, Kochi was a vibrant rental market in the past and it will always remain so.
Factoring in the raw material cost and labour cost (the highest in the country), the real-estate rates in Kochi are comparable to those in the Metro cities of the country. At present, the rate per sq ft in the city is Rs 5,000-7,000 and in some areas it is over Rs 10,000 per sq ft. According to builders, the total cost to build a flat in Kochi comes to around Rs 3,500 per sq ft (construction cost Rs 2,800 and land cost Rs 700 per sq ft).