Office space transactions in Kochi surge 28% to 17 million sq ft by the end of 2024: Report
Driven by technology and research firms, office space absorption in Kochi, Kerala, reached 17 million sq ft by December 2024, marking a 28% increase over the past three years, according to a joint report by CBRE and CREDAI Kerala. Meanwhile, Kochi’s total retail space stock has grown 9% since 2020, totalling 3.4 million sq ft as of December 2024.
In CY 2024, technology firms led the city’s office leasing activity with a 44% share in the overall space take-up. In addition to technology firms, research, consulting and analytics (RCA) firms accounted for 25% of the leasing share in Kochi’s office market, followed by flex space operators at 12%, the aviation sector at 11%, banking, finance and insurance (BFSI) companies at 4%, engineering and manufacturing (E&M) at 3%, and other sectors contributing 1%, the report said.
The report highlighted key factors contributing to Kochi’s real estate growth story. It also highlighted state government-led initiatives positioning the city as a cost-effective destination for Indian and global technology companies.
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The report points out the establishment of the Kochi Infopark Special Economic Zone (SEZ), which further strengthened Kochi’s position as a growing office market. Notwithstanding competition from other established centres in South India, Kochi is progressively solidifying its position as a future IT hub.
Supportive government policies, transforming infrastructure, and a growing pool of skilled professionals underpin the city’s attractiveness to IT firms. With a strategic commitment to sustainable development and technological innovation, Kochi is well-positioned to become a prominent player in the Indian IT landscape, it said.
“The domestic companies were the leading contributors to office space leasing in 2024, accounting for 57% of the overall leasing activity, followed by American-origin companies at 29%, Europe, the Middle East and Africa firms at 11%, and Asia Pacific companies at 3%. Additionally, small-sized transactions (less than 50,000 sq. ft) dominated the office absorption, accounting for 78% of total space take-up in CY 2024,” the report said.
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Kochi’s residential growth
The report said the 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.
“As a major port city and the commercial nucleus of Kerala, Kochi attracts a significant influx of professionals employed in the IT, shipping, and trade industries, thereby generating substantial demand for residential properties. Moreover, the city’s robust social infrastructure and comprehensive transportation network, comprising highways, a metro system, and an international airport, play a crucial role,” it added.
Residential development in Kochi initially took root in the Central Zone, with organised projects emerging in areas such as Panampilly Nagar and Kadavanthra.
The premium and luxury segment, particularly waterfront developments, gained prominence at Marine Drive.
Over time, leading developers entered this market with high-end projects, leveraging the location’s strategic advantages. This growth gradually extended to the East and North Zones, including Tripunithura, Kakkanad, and Edappally, which have since evolved into key commercial hubs, the report added.
