KOCHI: According to the National Housing Bank’s (NHB) Residex , the property prices in Kochi rose by 24.42 per cent in the second quarter of the current fiscal. But realtors in Kochi say that though there is a rise in prices, the demand for properties has diminished considerably in the past eight months. According to them, the volume of sales so far this year may come to 200 acres within the city and outskirts, which is very less compared to the huge volume of sales that Kochi had witnessed soon after the announcement of the Smart City project. The unavailability of property at prime locations, including MG Road, has prompted buyers to look for land on the suburbs of the city. The stretches along the National Highway from Edappally to Maradu, Kakkanad and Thrikkakara are still the favourite locations for genuine buyers. But the hot spot which has now become the ‘flipping’ hub is Edappally.Flipping refers to purchase of a revenue-generating asset and quickly reselling it for profit. “Flipping was high around the Smart City area when the project was announced. Now, it is Edappally where flipping is happening. The main reason is that the place is expected to witness huge development once the Lulu Mall becomes functional. Here, you will get more than double when you flip,” an experienced agent who used to fix land deals told Express.He said market manipulation is also high in Kochi. “Market manipulation is a deliberate attempt to create demand by altering the market rates of property. Determining the fair market value (FMV) will not be possible and the buyer will go in for the price range offered by the mediators,” he added.According to realtors, the price of a cent of land within the city now ranges from `45 lakh to 60 lakh, and near the Bypass the estimated cost per cent falls between `20 lakh and 27 lakh. “The sale of large volume of land usually takes place on the outskirts where a cent of land costs from `1 lakh to 1.5 lakh,” he added.However, the role of brokers in land deals has come down. And for big land deals, it is business tycoons who play the role of mediators. “The involvement of such mediators will minimise the risk factor, political and legal hurdles. Usually such mediators gain something between `5 crore and 6 crore for a single deal,” sources said.Another group that gains profit out of land sales is the land-filling mafia. “They are active on the outskirts. If a person purchases land and goes in for land filling, these people will come up with protest. The landowner will have to go in for a compromise with their leader who will later be ready for a settlement. After getting the settlement amount, the mafia will offer the landowner its help in filling the land for a lower amount,” sources added.
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