Developing properties in Kerala was not an attractive proposition neither for the government agencies nor for the private players. In Kochi, the government got into housing development by building flats in the picturesque Marine Drive area in the early eighties. In those times, there were very few takers for these apartments even when it was offered at the rate of about two lakh rupees for a single apartment.
The Greater Cochin Development Authority (GCDA) went ahead with the concept of organized housing development a little bit earlier. In the late 1970’s, land was earmarked for housing development in the Kaloor area. Individual houses of different sizes were built and offered to the public at affordable rates. However, there were very few takers for such custom built houses due to the aversion shown by the public to life in an apartment.
The concept of a land bank also emerged in those times with the entry of the GCDA into housing development. According to the land bank concept, the prime authority in Cochin wanted to keep large land areas for immediate use for various short term and long-term projects. However, even in those days with urban lands becoming costly and scarce, reclaiming the backwaters was given high priority. After a short break, the GCDA has plans to enter into organized housing development again.
Consider the water front areas of Marine Drive. The sprawling land area that is now offered for real estate development has been reclaimed from the backwaters. In the late 1980’s flats in Marine Drive found significant appreciation in value even in those times the price tag was quoted at more than 15 lakh for a single flat. With entry of the private players and the increasing demand for flats and apartments, it is difficult to purchase an apartment in Marine Drive below one crore rupees. Such is the demand and subsequent rise in property prices in Kerala and especially in Cochin.