Trivandrum home buyers who purchased a property five years ago, the city’s property market boasts a mixed bag of insights into how home prices have changed. Growth has been steady and incremental.
This is important to remember when assessing flats for purchase in Trivandrum.
Research conducted by Liases Foras indicates a five-year compound annual growth rate of approximately 2.2% in home prices in Trivandrum. The Housing Price Index grew by 1.3% in 2021, 1.4% in 2022, 4.2% in 2023 and 2% in 2024.
What has contributed to the growth?
The city’s housing growth has been driven by key structural changes in the area. With the expansion of Technopark, as well as the infrastructure and urbanisation of the city, housing demand has surged. The region has also attracted professionals and NRIs seeking to reside in a city offering more space at lower prices.
This has influenced a lot of new launches. Between 2021 and November 2023, 88 projects containing more than 6,000 residential units were launched in the city.
If you are assessing apartments in Trivandrum, the market is well supplied and has a broad choice of location, configuration and price points.
Have all properties appreciated at the same rate? Absolutely not.
The location, quality of construction, connectivity options, project amenities and surrounding area can have a big bearing on the appreciation potential of a resale property. Premium developments have also witnessed notable demand. An approximate 4.34% year-on-year capital growth for the residential market in Trivandrum was reported. Trivandrum also witnessed an increase in the inventory valued at more than ₹7,000 per sq. ft.
This is worth bearing in mind if you are considering luxury apartments in Trivandrum. Premium housing can see different trends from the mainstream market, particularly in established localities where land is in limited supply.
What can the five-year trend mean for home buyers?
The data illustrates a market where appreciation has been steady and deliberate rather than a leap forward. This can mean that the fundamentals of a property are important to consider.
A well-connected apartment in a developed locality could see a different appreciation path than a similarly priced property in a less developed area. Buyers should therefore look further than just the headline numbers of the city in terms of appreciation and take a close look at the micro-market.
It is also helpful to look at Trivandrum in the round. Markets such as Kochi have witnessed greater price movements during this time frame. Comparing flats in Kochi with properties in Trivandrum purely on appreciation growth can be misleading.
To summarise, the five-year trend demonstrates that Trivandrum’s housing market has been steadily evolving. For prospective buyers, the prerogative should be less about chasing growth figures and more about finding a property boasting strong location, liveability and demand prospects.