Trivandrum Real Estate 2012 - Apartments in Kazhakoottam, Kerala

Property, Projects, Real Estate Trends and Price analysis of Apartments in Kazhakoottam, Trivandrum, Kerala

A recent survey conducted by the market research team of Nandanam Consultants, across 64 locations in Trivandrum over a period of two months, analyzed the following trends in each of these small micro markets in Trivandrum. 

Our survey methodology included focus group discussions, email, telephonic interviews, questionnaires, and meetings with reputed developers who operate out of these micro real estate markets in Trivandrum. We used regression and statistical modeling methods to arrive at a cause effect relationship and understand the underplay between factors that affect property prices in the Kerala and specifically the Trivandrum real estate market. What follows below is an executive summary of the property trends at Kazhakuttam and areas surrounding Kazhoottam. For an indepth understanding of Flats on sale at Kazhakoottam, buyer feedback, price determinants in Kazhakoottam, builder reviews in Trivandrum, and apartments in Trivandrum, please reach out to the Nandanam team.

About Kazhakuttam - Source Wikipedia

Kazhakoottam (Malayalam: കഴക്കൂട്ടം) is a locality in Thiruvananthapuram city, the capital of Kerala, India. It is located on theNational Highway 47 on the way to Kollam from the city, and has gained in significance because of proximity to Vikram Sarabhai Space Centre, and, Technopark,the IT center which is the first and largest of its kind in the country. The Sainik School is also situated in this area. Kazhakoottam is the first ward of Thiruvananthapuram Corporation.

Our analysis of the Kazhakoottam, Trivandrum real estate market covered the following aspects: 

1) Evaluation of new and ongoing projects by developers and builders at Kazhakuttam in Trivandrum. 

2) Forecasting calculations on the number of units being created afresh and that are outstanding to be sold at Kazhakoottam based on available market data.

3) Survey of home buyers who purchased flats at Kazhakuttam or those who took houses on rent in the Kazhakoottam market in the past one year and their feedback on rents, price and overall living conditions at Kazhakoottam.

4) Analysis of Flats for Sale at Kazhakoottam and the average sales value of Flats in Kazhakootam per sq.ft.

5) Occupancy levels on apartments in Kazhakoottam area and factors affecting home rentals and occupancies.

Flats for Sale at Kazhakoottam, Trivandrum

Our team looked at existing and ongoing or recently announced projects at Kazhakootam with a focus on the 2011-2012 time frame. Of the total of over 250 projects which are under construction at the moment in Trivandrum, Kazhakoottam has a pie of 30 projects which is about 12.5% of the total construction activity in Trivandrum. That's a massive number for a small city like Trivandrum which means that out of a total of about 35,000 units which are under construction all over the city, approximately 4000 units are coming up at Kazhakuttam. 

Occupancy levels, Rentals and Sales Price of Flats at Kazhakoottam, Trivandrum

Our forecasts based on samples collected, showed that on an average, units which are within 1.5 to 2 km radius of Technopark or Infosys campus at Kazhakootam, recorded occupancies higher than 75% which means that there is a real demand for apartments in close proximity to the IT hubs. Results also showed that factors like amenities present, nearby schools, quality of homes also played a role in occupancy levels. Outside the zone of 2 Kms to the IT hubs, occupancies varied with a negative correlation to distance from the offices as well based on values of flats. Luxury flats above 1cr, showed less occupancy indicating that some where bought for investment purposes. Highest occupancies was usually for 1 or 2BHK apartments at Kazhakootam. Luxury housing was usually preferred by senior management of IT companies with employees at mid and junior levels going for 1 or 2BHK options. Employees from companies such as TCS, Infosys, Oracle and US Technologies formed the majority of occupants at flats near Kazhakootam, Trivandrum

Historical Sales values as per data collected by us for flat and home transactions from 2010 -2012 showed that, compared to earlier trends, currently Kazhakootam offered deals to home buyers in the 40-65 lacs range predominantly for apartments. The area had property values at 2500 per sq.ft in prime locations prior to 2008, but has crossed over to 4500 per sq.ft. for these properties as we enter 2011-2012.

Rentals varied with property and ranged from Rs.8,000 - Rs.17,000 for 1BHK or 2BHK apartments based on proximity to Technopark, area in sq.f.t, furnishing in the apartments, closeness to utilities and amenities offered.

Size of the Units of the Apartments on Sale at Kazhakoottam, Trivandrum

For a majority of 4000 units coming up at Kazhakootam, the average unit sizes are 2 Bedrooms ranging from 910 - 1100 sq.ft. with a median of 950 sq.ft. Most of the units tended to be over 1000 sq.ft. and developers  in Trivandrum seem to have gone for this as a benchmark when designing and architecting the units. Kazhakootam also offers units across the 1BHK and 3 and 4 BHK ranges, the former with single bedrooms and the latter catering primarily to the affluent sections with prices ranging from 60 lacs to 1cr+ for some apartments.

Developers and Builders at Kazhakoottam, Trivandrum

Interestingly over 19 builders out of the 56 builders (i.e. about 33%) in Trivandrum seem to having an eye on the pie at Kazhakoottam in the list of 30 projects coming up, showcasing that no one wanted to miss out on the real estate action there. The underlying effect seems to be a hungry scout for lands in the Kazhakootam region for these projects and price escalations of even 100% for lands in areas with close proximity to Infosys and Technopark in the last one or two years.Our survey also showed that no single developer was willing to put all eggs in one basket and barring a few, none of the developers had 3 or more projects underway at Kazhakootam, with most focussing on a single apartment or villa project at Kazhakoottam. 

Developers with projects underway at Kazhakottam (with respect to number of projects in descending order are): Oceanus, Favourite homes, SFS, Skyline, Cordial, Creations, Future, SRK, Vijaya, Asset Homes, Aswathy, Big Infra, Condor, Confident, Goel Ganga, Kristal, Nikunjam, Olive and RDS builders.

Luxury Real Estate - Villas and Apartments on Sale at Kazhakoottam, Trivandrum

Going by the true definition of luxury real estate at Kazhakootam, few of the projects completed and very few ongoing had amenities which could fit the bill to enter into the real luxury segment. SFS Cyber Palms project took the icing on the cake across all the projects, not only with CRISIL 7 star ratings, but with home buyers in the property expressing extreme satisfaction on their purchase, amenities offered and real estate appreciation.

The property also earned 8 out of 10 credits in our survey with existing lessee's in the project, interested in buying homes if available at reasonable prices in this project. Some projects like Heera Infocity, SFS Cyber Palms, Big  Infra and Asset Signature, seems to have earned significant mind-share of prospective home buyers who are looking for an investment in the area, and many were ready to pay extra to buy their next property if available at a good price in one of these four projects.

Assessing risk of buying projects in Kazhakoottam, Trivandrum

We are constantly faced with uncertainty, ambiguity, and variability especially for home and real estate investments. And even though we have access to information, we can’t accurately predict the future. Monte Carlo simulation (also known as the Monte Carlo Method) lets you see all the possible outcomes of your decisions and assess the impact of risk, allowing for better decision making under uncertainty.

We used Monte Carlo simulation and other techniques available with statistical tools to estimate risks to a home buyer based on property trends and price values in Kazhakoottam, Trivandrum and comparing it with the Trivandrum and Kerala real estate market. The risk quotient varied significantly based on timeliness, price ranges and depending on if the property was being bought for investment or stay purposes. Overall it showed that Kazhakootam may not be ideal for an investment in a second flat since projects were getting delayed due to lower number of transactions in the last year or so and also due to a slow growth phase in the IT sector. Our real estate agents and experts point to looking for value deals at Kazhakoottam, and making prudent decisions based on location, services, quality and delivery. You can also contact us for our comparable analysis which can help you compare projects across Trivandrum which might offer same value or appreciation like Kazhakootam at similar budgets.

Summary of our analysis for home buyers at Kazhakoottam, Trivandrum

For those home buyers who entered and bought properties at Kazhakootam, in the pre-2010 time especially 2006-2010 phase, seem to have got good value for money for their investments, especially if the projects were from reputed builders, and were completed in the stipulated time. Some buyers expressed their deep dissatisfaction with a few builders who handed over projects 2 to 3 years later than promised. Our advice would be to talk to a reputed real estate consultant, especially if you are keen on Kazhakootam and are looking at the existing inventory available there. For all you know, there might be a couple of great deals for you to invest in at Kazhakootam!

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