News & Views on Indian Real Estate

Tuesday, August 05, 2008

Kozhikode Ready to Buck the Realty Downtrend

Rising interest rates and slowing growth may have dampened spirits across the country but Kozhikode (formerly Calicut) realty market is gearing up for another round of boom. The Kozhikode property show, to be held early next month, would see the launch of around 15-20 projects in and around the city. Builders in Kozhikode have placed their hope on the growing importance of the city as an IT destination. In fact, many companies have started looking at Kozhikode seriously while deciding on their future investment plans. A Hungarian company has already announced its plans to open a centre in Kozhikode employing almost 1,000 IT professionals initially. To showcase Kozhikode to the IT investors, an organisation called Calicut IT Initiative is holding a IT Fair in the city. The fair would try to communicate the advantages of investing in Kozhikode to the investors. The city is also witnessing a boom in the IT infrastructure sector. Expansion of Kozhikode airport, the growth of tourism and the potential of the city to emerge as a new IT destination are the aspects on which the builders are pinning hopes on. Taking into account the all-round development of the city, the builders have launched new projects. The growth in general business in the city has also led to a boom in commercial space construction. Hilite Builders are launching a residential project which will have 5 lakh square feet of commercial space. Rates for commercial space are now ruling between Rs 5000 per sq ft and Rs 6000 per sq ft, while for the premium category it would be over Rs 10,000 per sq feet. There are about 40 builders in Kozhikode and its suburbs. They ensure that supply is kept in line with the demand. As a result, there has been a consistency in the rates for built-up space in both residential and commercial categories.