HomeArticleNRI returnees created a boom in Kerala; but showing some decrease now...

NRI returnees created a boom in Kerala; but showing some decrease now in real estate.

After Covid 19 crisis nearly 2.5 lakhs NRI’s both keralites & non-Keralites returned back to Kerala, which is the biggest reverse migration ever happened. Later, we have seen such a huge migration during the war & financial crisis of 2008. In the mid of the Covid crisis, NRIs from Kerala try to withdraw their savings and invest in something closer home which is more secure, this has shown a drastic growth in the real estate industry. In recent times, the real estate industry showing some slowness in growth, but the real estate industry will be back with booming growth within 3 months, the analyst says.

With total launches across the country at 146,628 units, launches were lower by 34% year-on-year in 2020. The steel prices have increased at a time when demand for property is slowly getting back on the track with the government measures and low interest-rate regime. This will heavily affect the apartment projects in kerala. Price of construction steel or TMT bars had recently touched Rs 45,000 a tonne in some markets, which was at least 30-40 per cent higher than the rate in the pre-Covid period.

Presently, only the residential sector has seen some demand, while the commercial segment is still reeling under pressure, rented commercial buildings are vacated by companies and the work at home system will heavily affect the commercial sector. Moreover, The high cost will discourage builders to delay the launch of new projects.

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