Kerala witnessing boom in Real Estate sector

Kochi, Aug 1 (UNI) Following the clearance of several high-profile development projects, including the Vallarpadam international conatiner transshipment terminal and the Smart City here, Kerala is witnessing a boom in the real estate market, Kerala Builders Forum said here.

Addressing a press conference last night to announce the holding of 'Kerala Property Expo' at Kochi from August three to five, KBF Secretary George E George said Kerala had witnessed an almost 35 per cent growth in the real estate sector this year compared to last year.

Stating that the growth was mainly in the residential segment, Mr George said the clearance for projects such as the 'Smart City' infopark was expected to create thousands of new jobs in Kochi and lead to a spurt in the demand for residential accommodation.

Mr George said more than 40 leading builders, including more than ten having operations outside Kerala, would take part in the three-day property expo. Leading financial institutions and banks also would put up stalls at the expo.

The LIC Housing Finance Ltd. (LICHFL) would be the main sponsor of the expo, which would be inaugurated by Mr S K Mitter, Director and Chief Executive of LICHFL.

Mr P Radhakrishnan, Manager, Operations, LICHFL, said the agency was planning a special offer for housing loans from August 15, reducing the interests from 11.25 per cent to 10.75 per cent. The LICHFL may also go in for spot approval of loans during the expo, he said.

Ms Reenu Muraleedharan, Regional Manager, LICHFL, said the agency's loan disbursals stood at Rs 200 crore in Kerala last year, a 35 per cent increase over the previous year.

Mr George said the expected revision of the Floor Area Ratio (FAR) from the current 2.5 was expected to increase the demand for apartments in Kochi. Stating that the National Housing Policy also favoured vertical growth in cities, KBF Chairman Mathen Chakola said cities such as Bangalore had increased the FAR to 3.25 while Mumbai had hiked it to three.

Stating that there was good demand from local residents for houses, Mr George said while two years ago, NRIs dominated the market, in recent years it were the local residents who were pushing the real estate demand.

UNI