US Real Estate Directory

[KateSavi]

The city of Cochin prominent as the port city of Kerala is one of the fastest emerging cities of India. As a port city, it has always been the proclaimed economic capital of Kerala with trade and retail being its fundamental business sphere. However, in the recent times, since NASSCOM ranked it as the second potential city for investments in the IT sector, Kochi has emerged as a favored destination for the IT & ITES industry. Also, Kochi shows vast potential for economic growth and industrialization based on norms such as real estate growth, available work force, overall infrastructure, policy initiatives and commercial history. However, the accessibility of cheap bandwidth through undersea cables and lesser operational costs in comparison to other key cities in India has proved to be of major advantage.

As the graph of Real Estate in Cochin takes an upward move, top real estate developers from within the country are vying up to the city with interesting projects. A spectacular development in the Kochi real estate market is with the Rs. 950 million-joint venture projects between HDFC and Larsen and Toubro (L&T). However, the project that Kochi real estate can consider as the mother of all investments is the Rs. 1500-crore`Smart City' project proposed by the Dubai Internet City (DIC). Moreover, with city administration providing the investors with the basic infrastructure like power, international bandwidth and urban transportation, industry experts expect a capital appreciation of around 12-15 per cent in the next two-three years. All these factors are contributing factors in creating a congenial environment for making Kochi one of the fastest growing cities in India. The resulting upswing in prices for the best properties has been a boon for the owners. In fact, a growing number of corporations are taking the opportunity to use their real estate as a financing tool. Through sale-leasebacks, companies can sell their property to an investor who will agree to lease it back to the company for a specified period. Many find this as attractive as issuing debt, since property values are high but rents remain affordable. Some of these deals have been gargantuan. Last year, ICICI Bank did a $770 million leaseback for most of its bank branches. McDonald’s (which has historically been an owner of property) also did one, valued at $340 million. Companies are using the money for different purposes, ranging from balance sheet improvement to acquisitions.


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