Office, retail demand push Kochi’s commercial real estate growth 

Driven by office and retail demand, commercial real estate in Kochi has registered robust growth, highlighting the city’s growing prominence as a promising destination.

The city’s total office space stock grew by 28 per cent in the last three years and stood at 17 million sq ft as of December 2024; the total retail space stock grew at a CAGR of 9 per cent since 2020 and stood at 3.4 million sq ft as of December 2024.

The joint report, ‘Kerala’s Ascent: The Pulse of India’s Progress,’ released by CBRE South Asia Pvt. Ltd, a leading real estate consulting firm, and CREDAI Kerala found Kochi as a vibrant commercial real estate market, with the office and retail sectors demonstrating a notable upward trend over the past few years.

In CY 2024, technology firms led the city’s office leasing activity with a 44 per cent share in the overall space take-up. Research, Consulting and Analytics (RCA) firms accounted for 25 per cent of the leasing share in Kochi’s office market, followed by flex space operators at 12 per cent, the aviation sector at 11 per cent, banking, finance and insurance (BFSI) companies at 4 per cent, engineering and manufacturing (E&M) at 3 per cent, and other sectors contributing 1 per cent.

Kochi’s retail landscape is supported by a growing consumer base with high disposable incomes, fuelling demand for premium products and lifestyle services.

The retail leasing in CY 2024 was primarily driven by the fashion and apparel segment, which accounted for a 55 per cent share of total retail leasing. This was followed by homeware and department stores, contributing 27 per cent, while hypermarkets constituted an 8 per cent share. The luxury segment and health and personal care held a 3 and 2 per cent share, respectively.

Total residential unit stock in Kochi stood at over 17,000 units by the end of 2024, driven by its status as a key port city and commercial hub.

Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE, said, “Kochi’s commercial real estate and residential sector is witnessing sustained momentum, driven by the presence of technology firms. As we move forward, continued investments in office spaces and the expansion of Global Capability Centres (GCCs) will further strengthen Kochi’s position as a key commercial hub in South India.”

Ram Chandnani, Managing Director, Advisory & Transaction Services, CBRE India,said, “Kochi’s retail landscape is undergoing a significant transformation, fuelled by rising consumer demand and increasing urbanization. Looking ahead, strategic developments in connectivity, sustainability, and smart urban planning will be crucial in shaping Kochi’s next growth phase.”