CBRE South Asia Pvt. Ltd, India’s leading real estate consulting firm, and CREDAI Kerala, today released a joint report titled, ‘Kerala’s Ascent: The Pulse of India’s Progress’, at the CREDAI Kerala Statecon 2025. The report comprehensively analyses Kerala’s dynamic real estate landscape, highlighting Kochi’s growing prominence as a promising destination. According to the report’s findings, Kochi boasts a vibrant commercial real estate market, with the office and retail sectors demonstrating a notable upward trend over the past few years. The city’s total office space stock grew by ~28% in the last three years and stood at 17 mn. sq. ft as of December 2024; the total retail space stock in Kochi grew at a CAGR of ~9% since 2020 and stood at 3.4 mn. sq. ft as of December 2024. This is a testament to the city’s strengthening footprint in the commercial real estate space, reiterating its upward momentum.
Kochi’s office sector
With a 44% share of the total space taken up, technology companies dominated the city’s office leasing activity in CY 2024. Approximately 25% of the leasing share in Kochi’s office market was held by technology companies, followed by flex space operators (12%), the aviation industry (11%), banking, finance, and insurance (BFSI) firms (4%), engineering and manufacturing (E&M) firms (3%), and other sectors (1%).
According to the analysis, domestic businesses accounted for 57% of all office space leasing activity in 2024, with American-origin businesses coming in second at 29%, EMEA businesses at 11%, and APAC businesses at 3%. Furthermore, office absorption was dominated by small-sized transactions (less than 50,000 sq. ft.), which accounted for 78% of the total space take-up in CY 2024.
Key elements of Kochi’s office real estate growth narrative were emphasized in the research, along with state government-led measures that have positioned the city as an affordable location for Indian and international technology businesses. According to the report, the creation of the Kochi Infopark Special Economic Zone (SEZ) enhanced Kochi’s standing as a developing office market. Kochi is steadily establishing itself as a future IT hub despite competition from other well-established centers in South India. The city’s appeal to IT companies is supported by supportive government policies, evolving infrastructure, and an expanding pool of qualified individuals. Kochi is ideally situated to emerge as a major force in the Indian IT market thanks to its strategic dedication to technical innovation and sustainable development.
Kochi’s evolving retail landscape
An expanding consumer base with high discretionary incomes supports Kochi’s retail scene by boosting demand for luxury goods and lifestyle services. Numerous large-format malls with a wide range of local and foreign brands are part of the city’s organized retail sector.
As of December 2024, Kochi’s retail stock stood at 3.4 mn. sq. ft., reflecting a notable growth of ~42% since 2020. The retail leasing in the city in CY 2024 was primarily driven by the fashion and apparel segment, which accounted for a 55% share in total retail leasing. This was followed by homeware and department stores, contributing 27%, while hypermarkets constituted an 8% share. The luxury segment and health and personal care held a 3% and 2% share, respectively. This diverse retail composition highlights the evolving consumer preferences and the city’s expanding retail landscape.
Kochi’s Residential Growth Story
Kochi’s role as a major port city and commercial center contributed to the city’s total residential unit stock, which stood at over 17,000 units by the end of 2024. Being Kerala’s commercial hub and a major port city, Kochi draws a large number of professionals from the commerce, shipping, and IT sectors, which in turn creates a high demand for residential real estate. Furthermore, the city’s extensive transportation system, which includes a metro system, an international airport, and highways, as well as its strong social infrastructure, are essential to sustaining the health of its residential real estate market. The Central Zone was where residential development in Kochi first began, with organized projects springing up in places like Panampilly Nagar and Kadavanthra. At Marine Drive, the premium and luxury market—especially beachfront developments—became more well-known. Leading developers eventually used the location’s strategic advantages to enter this market with upscale developments. The East and North Zones, which now serve as important commercial centers, were progressively included in this expansion. These zones included Tripunithura, Kakkanad, and Edappally. Because of the existence of IT/ITeS centers like the InfoPark, the majority of organized residential developments are currently located in the East Zone.
Shri. Pinarayi Vijayan, Honourable Chief Minister of Kerala, said, “The Kerala government is ready to implement the changes in building regulations. We are committed in ensuring that development remains sustainable. It is essential to consider the carbon footprint, its impact on future generations, and ways to mitigate such effects. We expect the construction sector to contribute to the Nava Kerala Nirmanam (New Kerala Development). The state is undergoing unparalleled development, achieved through collective efforts. Instead of traditional expansion, we should explore vertical habitats, like vertical gardens, to accommodate the growing population.”
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. The city’s evolving business ecosystem, supported by robust infrastructure and a growing pool of skilled talent, makes it an attractive destination for both domestic and international enterprises. 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. The expansion of organized retail, led by premium malls and global brand entries, highlights the city’s evolving market dynamics. Simultaneously, the residential sector is benefiting from infrastructure growth and the city’s appeal to professionals across various industries. Looking ahead, strategic developments in connectivity, sustainability, and smart urban planning will be crucial in shaping Kochi’s next growth phase.”
Other emerging cities in Kerala
Thiruvananthapuram: A Prominent Urban Centre
Kerala’s capital, Thiruvananthapuram, is quickly developing into a major metropolitan center due to a number of important variables coming together. Technopark, one of India’s biggest IT parks, is driving the city’s IT industry expansion by drawing in a lot of highly qualified workers and creating a thriving tech ecosystem. Numerous IT firms are based at Technopark, which fosters innovation and makes a substantial economic contribution to the city. Research and education form a solid basis for Thiruvananthapuram’s growth. A highly qualified workforce is produced by renowned educational institutions, and innovation is fueled by renowned research facilities like the Vikram Sarabhai Space Centre. The city’s beautiful beaches, notable historical and religious sites, and rich cultural legacy all play a big part in its booming tourism sector. Road upgrades and the growth of public transit are two examples of ongoing infrastructure development projects that are boosting connectivity, raising the standard of living for locals, and drawing in more investment.
Thrissur: A Thriving Real Estate Market
There are several benefits to Thrissur’s central location in Kerala. The city has strong air, train, and road connectivity, making it easy to reach major cities like Kochi, Thiruvananthapuram, and Kozhikode. Accessibility is further improved by the existence of National Highway 544, which passes through Thrissur. The city’s rich cultural legacy, which is demonstrated by occasions like the Thrissur Pooram, gives it a unique charm. The city is a popular travel destination for students, working people, and visitors due to its vibrant culture and reputation for education.
Kozhikode: A Vital Hub for Investment and Growth
Kozhikode is positioned as a developing investment destination due to its strategic assets, which include its coastal location on the Malabar Coast, close proximity to important cities like Bengaluru and Kochi, and a strong transportation system. Its potential for expansion is influenced by its well-established educational institutions, well-developed healthcare system, and continuous infrastructural improvements including flyovers, road extensions, and the proposed metro system.
One of the main forces behind job creation is the growth of IT parks and trade centers, which increases Kozhikode’s appeal to both locals and investors.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management, property management, investment management, appraisal and valuation, property leasing, strategic consulting, property sales, mortgage services and development services.
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