Veegaland Developers

Housing demand is being supported by rising household incomes, urbanisation and a shift toward larger, amenity-rich apartments. Premium and boutique formats are growing faster than the broader market as buyers place greater value on privacy, design, wellness, technology and established developer brands. This premiumisation is visible both in national market sizing and in the mix of new launches and registrations.

The key details are:

• India's residential real-estate market is estimated at approximately INR 2,690,000.0 Cr in FY26F and INR 5,910,000.0 Cr by FY30F, implying roughly 21.7% CAGR

• India's boutique-flats market is projected to increase from approximately INR 530,000.0 Cr in FY26F to INR 1,210,000.0 Cr by FY30F, a stated 22.7% CAGR

• South India's boutique-flats market is projected to grow from approximately INR 169,110.0 Cr in FY26F to INR 415,570.0 Cr by FY30F, implying 25.2% CAGR

• In Ernakulam, 3-BHK registrations increased from 858 units in CY2023 to 960 in CY2024, while 4-BHK registrations rose from 285 to 314

Kerala's premium housing market benefits from a distinctive buyer pool comprising domestic professionals, entrepreneurs, doctors, HNIs and NRIs seeking primary homes, retirement residences and investment properties. Kochi remains the state's strongest premium market, while Thiruvananthapuram and Kozhikode are gaining depth through IT employment, GCC growth and improving urban infrastructure.

The key details are:

• Sales value is projected to rise from approximately INR 2,550.0 Cr in FY26F to INR 5,570.0 Cr by FY30F, implying about 21.6% CAGR

• Kochi's boutique-flats market is projected to expand from approximately INR 670.0 Cr in FY26F to INR 1,470.0 Cr by FY30F, a stated 21.7% CAGR

• Kochi and Thiruvananthapuram each host more than 20 GCCs; the report cites employment of more than 8,000 and 15,000 people, respectively

• Kerala residential prices have been rising by about 10%-12% annually in Kochi, 8%-10% around Calicut Cyberpark and 7%-10% in select Thiruvananthapuram localities

Residential demand in Kerala is increasingly linked to transport connectivity, employment corridors and urban infrastructure. NH-66 upgrades, Kochi Metro expansion, Vizhinjam International Seaport and IT-park growth are widening residential catchments, while rising activity in Tier-II micro-markets is supporting both end-user demand and property appreciation. Digital approval platforms and K-RERA also improve transparency and execution visibility.

The key details are:

• PropEquity data cited in the industry report indicates premium housing in Kochi grew 17% year-on-year between January and May 2025

• Property prices rose more than 10.4% year-on-year in early 2025, while rental yields reached about 6% in key hubs such as Kakkanad

• Kozhikode real estate recorded approximately 12% year-on-year growth in Q1 2025, supported by IT professionals, infrastructure and NRI demand

• NH-66, Vizhinjam International Seaport, Infopark / Technopark expansion and metro-linked connectivity are identified as key demand enablers across Kerala

Residential real estate remains structurally attractive but is highly sensitive to affordability, project execution and capital cycles. Premium housing can sustain stronger pricing when demand is healthy, but slower bookings can rapidly increase inventory holding periods and funding requirements. Land-title complexity, statutory approvals, input-cost inflation and climate-related construction disruption remain important sector risks.

The key risks are:

• Higher mortgage rates raise EMIs and can delay purchase decisions, particularly in leveraged buyer segments

• Title disputes, litigation and approval delays can defer launches and lock development capital for extended periods

• Cement, steel, labour and subcontractor inflation can compress margins, while project delays weaken collections and buyer confidence

• Large national developers are expanding into Tier-II South Indian cities, raising competition for land, talent, marketing reach and premium customers

The policy framework increasingly favours formal, compliant developers through RERA, GST simplification, digital approvals and housing-support programmes. These measures improve buyer protection and transparency, but also impose strict project-level fund discipline and disclosure requirements. Infrastructure spending and Kerala's K-Smart / K-Swift systems can further improve project execution and market accessibility.

The key policies are:

• RERA escrow discipline: At least 70% of customer collections for a registered project must be deposited into a dedicated project account for construction and land costs

• RERA buyer protection: Projects above the applicable threshold require registration before marketing; advance collection is capped at 10% before execution of the agreement for sale

• GST framework: Residential GST is 1% without ITC for affordable housing and 5% without ITC for non-affordable housing, simplifying the earlier multi-tax structure

• Digital / infrastructure support: K-Smart, K-Swift, K-RERA transparency, NH-66 upgrades, metro expansion and Vizhinjam-linked infrastructure can support both approval efficiency and residential demand