Kochi Metro Rail Ltd to enter into realty sector
Kochi Metro Rail Ltd (KMRL) will soon enter the city’s realty sector. The Metro agency’s entry into real estate targeting middle class home buyers is expected to redefine the sector. KMRL expects to generate revenue of approximately Rs 1,000 crore through the sale of these apartments.
Kerala government has provided 18 acres of land to KMRL at Kakkanad, where old NGO quarters are located, and the flats will come up here.
The Metro agency intends to develop European-styled apartments which are of 1,000-1,200 square feet. These apartments would cost less than what the front runners in the sector are selling now.
It is pointed out that prominent builders offer premium apartments in Kakkanad at a rate of Rs 5,000 per sq feet. The construction cost of these is between Rs 2,750 to Rs 3,000 per sq feet. Apart from this there is land cost which is between Rs 1,000-Rs 1,250. Then there are other costs which are involved in getting approvals and funding. This will take the cost to Rs 4,000 per sq feet. According to builders while it is almost impossible to bring down the cost involved in the construction of the structure, there is a possibility to reduce the cost involved in executing works involved in the final stages like bathroom fittings, flooring, fire and safety and landscaping.