Maradu Experiences Decline in High-Rise Projects Post-Demolitions
Five years after the dramatic demolition of four high-rise apartment complexes in Maradu, Kochi, the area’s real estate activity has seen a marked shift. While construction activity has surged in recent years, the number of new high-rise projects has decreased significantly. Data from Maradu municipality reveals a rise in building permits for residential and commercial buildings, but these are predominantly for independent houses and smaller projects, with a noticeable drop in large-scale high-rises.
In 2019, before the controversial demolitions, the municipality issued 121 building permits. The following year, in 2020, 113 permits were issued. However, the numbers began to grow substantially in 2021, reaching 356 permits. While the numbers slightly decreased to 332 in 2022 and 241 in 2023, they still represent a substantial increase in overall construction activity. Despite this growth, the shift towards smaller residential and commercial projects highlights a significant change in the type of construction taking place in Maradu. Maradu’s growth was initially driven by large-scale investments, especially in the waterfront areas near Kundannoor, where prime property once commanded high values. However, the 2020 demolitions, which took place due to violations of Coastal Regulation Zone (CRZ) norms, have left a lasting impact on investor confidence. According to Antony Ashanparambil, Chairperson of the Maradu municipality, the demolitions tarnished the area’s reputation and have led to a drop in real estate revenue. Despite the reclassification of some CRZ-2 areas to CRZ-3, which allows for construction in certain waterfront zones, the area has struggled to attract significant real estate investment. The municipality and the Confederation of Real Estate Developers Association of India (Credai) estimate a 40% drop in investment since 2020, with high-rise projects largely being abandoned in favour of smaller developments.
Ravi Jacob, President of Credai Kochi, explains that the hesitancy to invest in high-rise buildings stems from a lack of demand from potential buyers. “People are hesitant to buy apartments in the area,” he says. “Due to this, builders are apprehensive about investing in high-rise constructions.” This lack of demand has made developers wary of sinking money into large-scale projects in Maradu. However, there is still hope for a revival. The Maradu municipality is optimistic that if the Supreme Court grants approval to issue licenses for high-rise constructions on the land where the demolished buildings once stood, the real estate market could experience a turnaround. Some developers have already shown interest in re-utilising the land for new high-rise projects, but this is contingent on legal approvals. The decline in high-rise construction in Maradu serves as a cautionary tale of how regulatory issues can significantly impact real estate development. The area’s recovery depends not only on legal approvals but also on restoring investor and public confidence in Maradu as a viable location for large-scale residential and commercial projects. As the municipality plans to host an investor meet in March 2025, it remains to be seen if these efforts will lead to a resurgence of high-rise developments in the area.
