NRI Demand Drives Thiruvananthapuram’s Real Estate Growth
Thiruvananthapuram, the capital of Kerala, has experienced an increase in real estate demand, especially in the residential sector. In 2024, the city led the state in residential unit registrations under the Kerala Real Estate Regulatory Authority (K-RERA), with 2,987 units registered. This figure surpassed other major districts like Ernakulam, which recorded 2,864 registrations. The growth in demand for residential properties in Thiruvananthapuram is largely attributed to the influx of Non-Resident Indians (NRIs) and professionals from neighboring states.
Ernakulam has traditionally been the real estate center of Kerala, favored by investors and homebuyers due to its strong infrastructure and urban appeal. However, Thiruvananthapuram has been gaining traction in recent years, becoming a preferred choice for NRIs seeking to invest in property. This shift in demand can be linked to the city's appeal to expatriates, particularly those returning to settle in a place that offers both modern conveniences and a more peaceful lifestyle.
Experts believe the rising demand in Thiruvananthapuram is connected to the city’s expanding role as an administrative and IT hub, which offers more job opportunities. The relatively affordable housing in Thiruvananthapuram, compared to other urban areas in Kerala, further increases its attractiveness. This makes it a favorable destination for families looking for a balanced lifestyle that combines urban facilities with a quieter environment.
The demand from NRIs, especially those returning to India after years abroad, is seen as a clear sign of the city's growing appeal. With a blend of tradition and modernity, Thiruvananthapuram is particularly appealing to expatriates who seek both cultural heritage and contemporary amenities.
In addition to the NRI influx, professionals from neighboring states, particularly Tamil Nadu, have been moving to Thiruvananthapuram in search of better job prospects. The city's expanding IT sector, government services, and emerging industries have contributed to the surge in real estate demand. This has led to more interest in residential properties, further boosting growth in the region.
Connectivity is another factor that has contributed to the city's real estate appeal. Thiruvananthapuram benefits from excellent airport connectivity, and the ongoing development of Vizhinjam Port is expected to significantly boost the region's economy. As the port project progresses, it is expected to generate more economic opportunities, thereby driving further demand for real estate. Moreover, the city's relatively low traffic congestion makes it an attractive place to live, offering residents an easier commute compared to other major cities.
SN Raghuchandran Nair, President of the Trivandrum Chamber of Commerce and Industry (TCCI), highlighted the growing appeal of the city for people seeking quality medical care and education. The improved connectivity and the absence of traffic congestion contribute to a higher quality of life, making the city more attractive to residents.
Other districts in Kerala, such as Thrissur (1,236 units) and Kozhikode (1,195 units), have shown strong performance in terms of real estate registrations, but they still lag behind Thiruvananthapuram and Ernakulam. Districts like Palakkad (541 units) and Kottayam (245 units) have seen less activity, indicating that Thiruvananthapuram is becoming the dominant player in the real estate market. In contrast, districts like Malappuram (149), Pathanamthitta-Thiruvalla (122), and Kollam (54) have recorded limited growth, suggesting that these areas still face challenges in attracting significant real estate investment.
Thiruvananthapuram's real estate market is experiencing steady growth, driven by the influx of NRIs, professionals from neighboring states, and the city’s improving infrastructure. As the city continues to grow and develop, demand for properties in and around Thiruvananthapuram is expected to remain strong.
