Realty check: Now, who needs demand!

KOCHI: Notwithstanding the lull in demand in recent months, the real estate sector in the city continues to be vibrant, at least on the construction side, with the sector recording an over 25% growth during the 2003-2013 period.
As per a recent study, the city and suburban areas witnessed construction of 321.8 lakh sq ft area in the residential sector during the decade from 2003 to 2013 as against 253.77 lakh sq ft in the 2002-2012 period.
Meanwhile, if you include ongoing projects, this would come to 407 lakh sq ft in the residential sector as against 300 lakh sq feet projected during the 2002-2012 period.
The study was conducted by the Kochi-chapter of the Confederation of Real Estate Developers' Associations of India (CREDAI) between June and August this year. It has covered projects launched by 161 builders, including CREDAI members, during the period between April 2003 and March 2013.
The earlier study, conducted during the period between September and November 2012, said that 527 residential projects (451 apartment and 76 villa projects) were begun during the 2002-2012 period. The unsold stock of completed projects during the 2003-1013 period stood at five lakh sq ft, the study found. "Sales have been steady in the recent past. It is expected to go up in the coming months with non-resident Indians visiting the state for vacation," said John Thomas, president, CREDAI-Kochi.
This extreme optimism seems to be driving the steady rise in project launches despite the slowdown in demand in recent months. Builders are also pinning hopes on Smart City and the second phase of Infopark. "With these two projects becoming a reality, there will be increased demand for housing in Kakkanad," said Thomas
The number of residential projects in Kakkanad has increased to 139 during the new study period compared with 122 between 2002 and 2012. While the number of residential projects increased from 35 during the 2002-12 decade to 51 in Aluva, projects in Tripunithura increased to 50 as against 41 projects. The data used for the study was collated from questionnaire, information from websites and interviews, according to CREDAI. It covered 657 residential projects, including 579 apartment and 78 villa projects.
In the last five years, 198 projects with 194 lakh sq ft have been completed. While 30 residential projects were completed in 2013, it was 36 in 2012, 35 in 2011, 55 in 2010 and 42 in 2009. The maximum number of projects was completed during the period from 2008 to 2010. As per the study, the construction of 364.5 lakh sq ft residential area is under progress.
The highest number of residential projects was launched in Kakkanad (139) during the period from 2003 to 2013. This was 51 in Aluva, 50 in Tripunithura, 39 in Edappally and 25 each in Vyttila and Kaloor.
In 2013 up to August, 22 residential projects received building permits compared with 28 projects in the previous year. Builders stated that it took more than six months to get building permits approved after submitting applications.