Kochi: For long, Dubai was the undisputed treasury for Kerala diaspora, a tax-free haven where capital flourished under the desert sun. However, amid rising regional tensions and uncertainties, NRKs across the globe who invested in Dubai are now looking home to invest in a "safe" real estate property. And Kochi city, with its connectivity, metro and IT hub, is the most favoured destination to invest NRI capital in real estate, majorly in the form of land or commercial establishments.
Surge in NRI Investment
"Realty sector in the state, especially Kochi, is witnessing a surge on the back of increased NRI investment. Prime residential units have recorded a 10-12% increase in prices while it's much more in high-demand zones. For instance, in Kakkanad, it was Rs 7,000 per sq ft last year, but now it is close to Rs 9,000 per sq ft," said Synthite Group executive chairman Viju Jacob.
Dubai Market Decline
For the first time since the post-pandemic surge in 2020, Dubai's residential property market saw a monthly decline in valuations. According to data from ValuStat, home price index fell by 6% in March 2026, compared to the previous month. The shift marks a significant pivot from the double-digit annual growth that previously characterized the emirate as one of the world's hottest real estate hubs.
Enquiries for Diverse Properties
"We are getting a lot of enquiries for both small (below Rs 2 crore) and big properties (nearly Rs 25 crore). The demand is more for two categories — commercial buildings and plots that can be developed, especially in areas like Maradu," said Kerala Real Estate Agents Association (Kerka) Ernakulam district treasurer Midhun Lal.
Even several Golden Visa holders are now reassessing the opportunity cost of keeping their liquid assets in a plateauing market. "The market here has revitalized, with many families opting to come back and invest in properties or residential units here," said Asset Homes Pvt Ltd founder and managing director V Sunil Kumar.
Impact of Gulf Tensions
"Earlier, the trend was to invest in the Gulf sector which was experiencing a boom post the pandemic. Many Indian builders are too focused on places like Dubai and Abu Dhabi. A main attraction was the tax concession offered there. However, the war was totally unexpected. Nobody expected a direct (drone) attack on Gulf countries," said Federation of Indian Chambers of Commerce and Industry (FICCI) Kerala co-chair Deepak Aswani.
This trend is not something new and probably not even permanent. Builders said Kochi saw its first major real estate boom in 1991 during Iraq-Kuwait war, when many based in Kuwait returned home and invested in real estate in Kochi.
Market Steady, But Caution Advised
"The market across Kerala is currently steady. Kochi's infrastructure, anchored by Kochi Metro, Water Metro, road infrastructure projects and expansion of Infopark etc, has created a perfect storm for investors. Similar is the case with Thiruvananthapuram with big projects like Vizhinjam and coastal highway. There is definitely a boost in the realty sector, but it's too early to link it with the Gulf situation," said Confederation of Real Estate Developers Associations of India (Credai) CEO Sethunath M.
Kerala Real Estate Regulatory Authority (K-RERA) chairperson Asha Thomas also said it is too early to make a definite assessment on the impact of war on Kochi's real estate market. "It's much too early to feel that sort of effect… But builders have the pulse of the sector," she noted.
