The Capital City's Transformation:  Three Factors Fueling the Land and Home Buying Craze

Kerala's major urban centers, Ernakulam and Thiruvananthapuram, have traditionally attracted the highest number of inter-district migrants for residence. While Kochi has flourished as the industrial hub, Thiruvananthapuram maintained its distinct identity as the state capital. However, the dynamics in Thiruvananthapuram are undergoing a significant transformation. According to data from the Real Estate Regulatory Authority (RERA), the capital district is now leading the state in the registration of new residential complexes. Thiruvananthapuram has topped the list for new registrations of flats, residential projects (houses, and villas). This trend first became evident in the 2024 statistics, and the capital district continues to maintain its lead in the 2025 figures released so far.

This surge in demand is primarily attributed to three key factors:

1. Significant Growth in Infrastructure Development

Thiruvananthapuram has witnessed substantial advancements in its basic infrastructure, making the city more accessible and livable. This foundational growth is a major draw for prospective homeowners and investors.

2. Increase in Investment

The district is experiencing a notable rise in overall investment activity. This confidence in the city’s economic future is directly fueling the real estate market.

3. Emergence as an Industrial and Commercial Hub

Thiruvananthapuram is increasingly evolving into a major industrial and commercial center, shedding its traditional image as purely an administrative capital. This expansion of commercial opportunities is attracting a new demographic.

The Role of Non-Resident Indians (NRIs) and IT Professionals

Reports indicate a strong preference among Non-Resident Indians (NRIs) returning from abroad to settle in Thiruvananthapuram. They are demonstrating significant interest in the city's real estate, accounting for approximately one-third of all land transactions, particularly in the luxury segment—apartments and villa projects priced above one crore rupees. A similar trend is observed among IT professionals. Developmental activities linked to the city's expansive Technopark are acting as a major catalyst for this concentration of the professional population. Statistics confirm the robust nature of this market, showing an annual increase in land prices ranging from 8 to 12 percent. Furthermore, the report highlights another significant trend: a considerable increase in the number of rental homes being created within the capital city, indicating a booming demand for both ownership and temporary residence.