The realty scene in Kozhikode in 2009 was remarkable to an extent following the economic recovery nationwide in the fag end of the year. Existing companies launched several new projects and new companies forayed into the construction sector during the year.

“The market has shown a positive trend both in commercial and residential spaces, though a correction was witnessed at the upper-end segment. But middle and budget apartments had good sale,” says Nityanand Kamath, president, Confederation of Real Estate Developers Association of India CREDAI, Kozhikode chapter.

A delay in the completion of some mega projects hit the real estate business, he says. The collapse of the housing sector in the Gulf, especially Dubai and Kuwait had an impact on the sector in the Malabar region. However, overall, the sector was vibrant in Kozhikode, he adds.

Now, Kozhikode will see much more development with improvement in infrastructure. The cityscape will change with expansion plans of major builders.

Many companies have launched new projects focussing on the younger generation and the Non-Resident Indians NRI retuning to settle down in the city. Over 70 per cent of the construction sector in the city directly or indirectly involves the NRI population.

Property show

The success of the annual property show in August was an indication of the positive signs. Nearly 1,500 customers registered for the event. More than 4,000 visited the stalls.

Projects of 16 Kozhikode-based builders were displayed at the show. These included villas, apartments, studio homes, townships and commercial spaces.

Builders say the realty business could come to more than Rs.500 crore annually. During the boom three years ago, the sale of flats, villas and commercial spaces crossed nearly Rs.1, 000 crore.

The new residential properties include Royal Palm of Malabar Builders at Kottully Seafort of Al-Hind Builders near the Tagore Centenary Hall; and ‘Seasons,’ a villa project of Apollo Builtec at Ramanattukara. There are 32 villas on 3.5 acres of land. The villas will be of areas between 2,000-2,500 sq ft and the launch price is Rs.2, 750 a sq ft.

Companies such as Seiken Properties, Calicut Landmark Builders and Sreerosh Properties have launched new projects.

Despite the gloom in the early months of the year, various new companies came up with projects both in the residential and commercial sectors. Horizon Properties launched an apartment project, Cosmic, at Chevayoor TC One Builders launched a commercial complex, TC One Towers, at Pottamal; and Satra Properties launched ‘Satra Galleria,’ a commercial complex, including a multiplex, on Mavoor Road.

Galaxy Builders, which hitherto concentrated on residential spaces, is constructing Space Mall on Jaffer Khan Colony Road. City Gallery is another new commercial complex on Kannur Road.

The builders say that rental values are set to improve in 2010. Shortage of commercial spaces resulted in many builders scouting for land on Mini Bypass and the new Malaparamba-Ramanattukara Bypass to start new business.

However, property developers are cautious as well considering that these areas are yet to be developed. Construction is going apace to extend the bypass from Malaparamba to Vengalam. Similarly, a four-lane mini bypass from Eranhipalam to Arayadathupalam needs to be finished.

The city-based hi-lite group has launched ‘hi-lite’ Hills, a commercial and residential project on the Malaparamba- Ramanattukara Bypass at Thondayad. ‘hi-lite’ Plaza will have office spaces consisting of two towers with over 10-lakh sq ft of built-up space. The towers, each of eight storeys, will be equipped with all amenities and a corporate ambience for all kinds of commercial enterprises.

The Calicut City Service Cooperative Bank plans to construct an Rs.12-crore construction project at Chalappuram. Four floors of the proposed cooperative complex, with an area of around 12,000 sq ft, will be entirely utilised for the head office of the bank and a farmers’ centre.

Fifty flats will be constructed on the remaining floors of the 14-storey complex. The total area will be more than 71,000 sq ft.

Kamath, who is the vice-president of the CREDAI State unit, says the positive attitude shown by the builders will give an impetus to the real estate sector in the coming year. The global financial crisis triggered by the U.S. housing woes two years ago had its fallout in India too, but had been not so depressing in Kerala.

“Even if it was so, we have seen the stage of recovery suddenly and definitely we will witness a boom from next year,” he says.

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