- Kerala currently has over 2,200 operational start-ups – 36% in Kochi alone
- USD 44 mn funding spread across 13 deals pumped into the state in first 9 months of 2019 – up by 18% over 2018
- Lower operation costs, skilled manpower, modern technology & supportive Govt. policies driving start-ups’ growth
- Kerala one of the top 5 states for start-ups, with Gujarat, Karnataka, Odisha & Rajasthan
- Nearly 59% of Kerala’s start-ups headquartered in Ernakulam & Thiruvananthapuram districts
Kochi, 6th March 2020: With a conducive environment for entrepreneurs to grow and flourish, the start-up ecosystem in Kerala is catching up with neighbouring Karnataka. Primarily known for tourism, the state currently hosts more than 2,200 start-ups, with over 36% of these in Kochi alone. The CREDAI-ANAROCK report ‘Kerala – Unravelling the Growth Trajectory‘ unveiled at the CREDAI Kerala Statecon – 2020 held in Kochi today, confirms that the state now ranks among India’s top 5 start-up incubation hubs along with Gujarat, Karnataka, Odisha and Rajasthan.
The report finds that in terms of overall start-up funding in Kerala, both 2018 and 2019 saw significant growth over the previous years.
Anuj Puri, Chairman – ANAROCK Property Consultants says, “In just the first nine months of 2019, the state received approx. USD 44 mn in funding spread across 13 deals – a notable increase of 18% over 2018. Among the top investors were Unicorn India Ventures, India Angel Network Fund, Malabar Angels, Sea Fund, Jose Pattara and Flat6Labs Bahrain.”
Relatively low cost of operations, skilled manpower availability, modern technology use and highly supportive government policies such as Kerala Start-up Mission (KSUM) have been key factors driving Kerala’s start-up revolution.
Mr. Krishna Kumar – Chairman, CREDAI Kerala says, “Kerala is one of the most literate and skilled states in India. Schools, colleges, start-up incubators and government institutes have been very efficiently linked into an ecosystem that provides ample opportunities for the growth of entrepreneurship and innovation.”
Other notable features of Kerala’s start-up ecosystem:
- In early 2019, the government initiated an integrated start-up complex in Kochi spread over 1.8 lakh sq. ft. Three similar projects are in the pipeline, increasing the capacity to over 5 lakh sq. ft.
- Nearly 59% of Kerala’s start-ups have their headquarters in Ernakulam and Thiruvananthapuram districts.
- Home to IIM and National Institute of Technology, Kozhikode has emerged as a preferred start-up destination in recent years. The city hosted nearly 10% of the state’s start-ups in 2019, compared to 6% a year earlier.
Kerala Real Estate Sector’s Untapped Potential
The report further highlights the untapped potential within Kerala’s real estate sector. Kochi is the epicentre for most real estate developments, accounting for nearly 45% of the overall market activity. Thiruvananthapuram and Thrissur are the next two big real estate destinations in the state.
To the backdrop of Kerala’s burgeoning IT sector and rapidly improving physical infrastructure, its real estate sector will potentially attract major NRI investments in the future. Interestingly, nearly 16.5 million sq. ft. of IT parks are already operational in Kerala’s key cities, collectively host over 800 companies – and another 10 million sq. ft. are being developed in the state. The massive NRI investments into Kerala, which contribute significantly to its economy, can be optimally utilized for further real estate developments. Special schemes for NRIs and marketing campaigns in other countries can also help raise NRI investments in the sector.
Its environmental and climatic conditions make Kerala a very favourable destination for senior living, thus providing an opportunity for the development of this exciting alternate asset class. Similarly, the high saturation of educational institutions and Study in India program provide massive opportunities for student housing in Kerala.
Other report highlights:
- Well-established tourism real estate is attracting multiple branded hotel chains into the state. Kerala is one of the major contributors to tourism in India. The total revenue from foreign and Indian tourists (estimated at INR 33,400 Crore nationally) accounts for nearly 7% of the state’s GSDP.
- The education sector continued to attract the highest budgetary allocation of INR 20,862 Crore in FY20-21.
- RERA‘s recent implementation in the state prepares the ground for increased transparency in Kerala’s real estate sector. That said, RERA deployment needs to increase and achieve wider market coverage in the state.
- NRI remittances are the backbone of Kerala’s economy. While India retained its top position worldwide in inward remittances (of approx. USD 82 bn, or 2.8% of India’s 2019 GDP), Kerala accounted for nearly 19% of the total – the highest in the country.
- The Life Sciences Park at Thiruvananthapuram will boost one of Kerala’s USPs – healthcare – with an integrated approach to life science research for agriculture, food and nutrition, human health, biotechnology and medical technology.
SKA Group offers possessions for SKA Metro Ville towers, Aster and Orchid
Noida: NCR-based realty player SKA Group announced that it is giving possessions for its housing society project, SKA Metro Ville....
MAPIC India ties up with NCR realty firm: CRC Group becomes Associate Partner
MAPIC India Awards was held with significant participation from retailers in Mumbai on September 14-15, 2022. in association with CRC...
Xanadu Realty collaborates with Raheja Universal for Raheja Exotica at Madh
Mumbai, September 26, 2022: Xanadu Realty, has partnered with Raheja Universal to unveil a new phase of their project at...
NAREDCO Vidarbha sets the trend for structured real estate development
Nagpur, September 26, 2022: The National Real Estate Development Council (NAREDCO) Vidarbha chapter commenced activities with the aim of ensuring transparency and...
Bhutani Grandthum offers deals for customers this festive season
Noida: Bhutani Grandthum has announced a deal, “Pay 100 & Get 100”, to give the best investment opportunities to the...
Nearly 50% homebuyers expect property price hike: Housing.com-NAREDCO survey
New Delhi, September 26, 2022: Real estate continues to be the preferred asset class for investment and nearly 50 per cent...
Developers Speak4 weeks ago
Why the Indian Brokerage Industry needs investment in training capabilities
News4 weeks ago
Two newly appointed Members of UP RERA to hear the cases from the regional office
Report4 weeks ago
Over 45 Data Centres spanning ~13 mn sq ft to boot up in India by 2025-end
New Launches4 weeks ago
Zolo’s luxury Co-living space, Zolo Triloha
Developers Speak2 weeks ago
Chandni Chowk at the Centrepiece in tune with the wave of Commercialisation
Developers Speak2 weeks ago
Festive season to spurt bookings: Experts
News4 weeks ago
Retail leasing up 166% Y-o-Y in H1 2022
News4 weeks ago
Property prices to rise 27-30% annually post MOPA Airport in North Goa: 360 Realtors