Kochi property prices seem to have stabilized after sharp fall

Property prices in Kochi finally seem to have stabilized over the last quarter after a steep fall over the last 3 quarters of over 30%.

A close look at the RESIDEX index published by the National Housing Bank shows that property rates in Kochi, across multiple parts of the city have more or less stabilized. We had reported earlier about the fears of a bubble in the Kochi real estate market given the sharp drop in prices. If statistics are to believed the demons have left Kochi and all parts in the city except Vytilla has seen property rates stabilize.

This is good news for investors and real estate owners since it shows that speculative investments are not happening at a frantic pace as was the case earlier. The demand is stable and growth should kick in once demand supply mismatch is corrected in the next few quarters. It would be interesting to wait and watch for the next quarterly RESIDEX index which would be published in a month or so to see if Onam festivities has helped increase demand for property and thereby lead to appreciation in rates.