A Complete Guide to Assessing Land Prices in Kerala for 2024/2025

As someone new to understanding land prices, exploring the Kerala real estate market without the right knowledge and guidance can seem overwhelming. Whether you are looking for land to build a house, are an investor, or are simply curious to know and learn about property values across Kerala, knowing the principles of land values can help you make better decisions. The general factors affecting land prices are the location, market demand, government regulations, and potential for infrastructure development opportunities. Moreover, having a clear knowledge of the fair value of the land and the market value of the land can give you a better advantage. 

Throughout this blog, we will go over the fundamentals of everything you need to know about assessing land prices in Kerala for 2024/2025: 

What is the Fair Value of Land in Kerala?

The term ‘fair value’ of the land is the government-assessed price for the land, which is used to determine the minimum price at which the land can be registered officially. This price is designated by the Kerala Registration Department and updated regularly to ensure all real estate trades are transparent and equitable. 

Fair value plays an important role in calculating stamp duty and registration charges, which comprise the mandatory fee paid to the government when buying or selling land. However, fair value is not the only component that determines the final selling price of the land - market value plays a significant role as well. Any individual authority does not set market value but varies depending on factors such as location, infrastructure developments, demand for the land, and more. 

To simplify, fair value states the benchmark price for legal transactions, and market value states the price that the buyers are willing to pay.

Also Read: Tax Benefits on Home Loans

Factors Influencing Land Prices in Kerala

Many major elements influence land prices. Let us look at some of the elements that play a major role in shaping land prices across Kerala:

Location

• Urban vs. Rural Areas: Urban centers across the state mandate higher land prices due to the presence of better infrastructure, basic amenities, and employment opportunities. Rural locations offer more affordable areas but come with fewer amenities and facilities.
• Proximity to Amenities: As lands with closeness to basic facilities such as educational facilities, health centers, shopping facilities, and more increase convenience towards better lifestyles, they come at higher offers.

Infrastructure

• Roads, Bridges, and Airports: New and upcoming infrastructure projects near the land can boost its prices thanks to an increase in accessibility and convenience.
• Government Projects: Government projects such as smart cities, IT parks, etc., can bring in a major improvement to land prices.

Market Demand

• Buyer Interest: An increased demand for land from buyers and investors can lead to a major increase in land prices. 
• Scarcity: The scarcity of land appropriate for development in prime regions can result in higher prices of land.

Land Zoning & Regulations 

• Legal Checklist: Zoning laws specify the usage of lands, affecting the property value. 
• Environmental Regulations: If the land lies within the adherence to environmental regulations set by the government, it can increase the value of the property.

Economic Factors

• Inflation and Interest Rates: National and state-level economic indicators such as inflation and higher interest rates can majorly affect land prices.
• Stronger Economy: A stronger and well-balanced economy can boost the confidence of investors, therefore increasing the demand for land prices.

How to Assess Land Prices in Kerala

There are multiple ways to assess land prices. One of the easiest and most effective ways is to go check online real estate platforms and websites where individuals list prices according to the latest trends. To get even more specific and transparent information about land prices, you can go to the official website of the Kerala Registration Department and get the fair value for the land, which is ideally used for legal transactions. 

Another smart way to approach this situation is by getting a consultation with real estate agents. Local real estate agents can have more knowledge of the local land markets and a better network to help you either in selling or buying the land. The local real estate agents can also provide better data on upcoming projects and developments, which can be instrumental in real estate deals. 

Comparative Market Analysis (CMA) is another major way to understand and assess land prices. This process involves the comparison of similar properties across an area to get an estimate of a specific piece of land in the area. Additionally, you can cross-check this data with the government sources to get a better idea of the land prices. 

Role of Property Valuers in Land Assessment

Working with experienced property valuers promises a better deal that comes with affordable/profitable prices and compliance with all-around legal regulations and advisories. Let us take a look at how property valuers can help in land assessment:

• Land Documents: Verification of the land documents is one of the most important and essential steps when it comes to selling or buying land. Buyers must cross-check the documents and verify that the land is free from any encumbrances. All the transactions should be done under the jurisdiction of the appropriate authorities to make them official and equitable.
• Land Ceiling Laws and Zoning Regulations: Kerala has specific zoning regulations that determine how land can be used for residential, commercial, agricultural, industrial, or more functions. Moreover, the state has specific land ceiling laws that specify the limit of land an individual or entity can hold in their name. One must be sure about these principles before making real estate moves.
• Sustainable Measures: A lot of areas across Kerala are protected under environmental protection laws. Buyers should make sure to check whether the land they are interested in is protected by coastal regulation zones, forest conservation laws, or wetland protection rules before making the final move on the land purchase - as non-compliance with these measures can lead to legal issues.

Trends in Land Prices for 2024/2025

With major upcoming infrastructure development projects in major cities of Kerala, we expect to see a steady growth in land prices for 2024 & 2025. All the analysis data points towards Kochi, Thiruvananthapuram, and Kozhikode to expand and gain better demands thanks to residential and commercial properties. 

A rise in significant real estate activity is expected in areas such as the Kochi-Mangalore corridor and Vizhinjam International Seaport. The expansion of Kochi Metro and new proposed Metro at Trivandrum and new highway projects promises an increase in the real estate market for the particular regions. 

Also Read: Legal Documents and Checklist to Verify Before Buying an Apartment in Kerala

Common Mistakes to Avoid When Assessing Land Prices

Finding the correct land prices is not an easy job; it can be a process involving multiple steps. Many buyers make mistakes that can lead to major financial losses and even to losing the ownership of their own land! Let us take a look at common mistakes to avoid while trying to assess land prices in Kerala:

• Relying on Online Prices: Online real estate platforms usually list the general land rates, often hiding the platform costs, negotiation costs, location-specific costs, and more. 
• Hidden Costs: Even while following through legal channels, there can arise more hidden costs such as stamp duty, registration fees, legal charges, and brokerage fees, which should be calculated beforehand to decrease financial drains.
  Consideration of Future Developments: Upcoming infrastructure projects and government initiatives can impact land prices heavily. Make sure to consider these factors while finalizing the land rates.
• Cross-Checking Documents: Ensuring the legitimacy of the land ownership documents and cross-checking them is essential to avoid future disputes and complications, which can affect you in the long run.
• Current Market Trends: Failing to analyze historical data, persisting economic scenarios, and current market trends can take away opportunities for better land rates.

Desai Homes: Leading Builder in Kerala

Desai Homes has established itself as one of the leading builders in Kerala. With a strong presence in major urban cities across Kerala, such as Kochi, Thiruvananthapuram, Kottayam, Kozhikode, Thiruvalla, and Thrissur, we strive to offer you reliable residential and investment opportunities. 

Through our high-quality residential projects, we offer spaces that are well-connected to major and upcoming infrastructure developments such as highways, metro expansions, commercial hubs, and more locations, which promise high land value appreciation over time. By choosing Desai Homes, you are securing not only a secure home but ensuring a smart and profitable investment for the future. 
Whether you are buying a home for personal use or as an investment, Desai Homes provides the perfect opportunity to own property in high-value, future-proof locations where land prices are set to grow. Contact us today to learn more about our projects set across prime real estate hubs across Kerala!