Top Emerging Real Estate Investment Locations in Kerala

Kerala, with its serene landscapes, high human development indices and strong remittance economy, has long been an attractive real estate destination. While cities like Kochi and Trivandrum have historically led the way, 2025 is seeing a significant shift toward emerging investment hotspots across the state.

As infrastructure improves and lifestyle preferences evolve, newer towns and semi-urban pockets are drawing investor interest for both residential and commercial real estate. Whether you're an NRI, a long-term investor or a first-time buyer looking for appreciation potential, these emerging locations in Kerala are worth exploring.

Here’s a deep dive into the top emerging real estate investment destinations in Kerala for 2025.

1.     Kakkanad (Suburban Kochi)

Why it’s hot: IT growth + Metro expansion + township living

Kakkanad, on the outskirts of Kochi, is rapidly evolving into Kerala’s own IT and start-up hub. Home to Infopark, SmartCity and several tech campuses, this area is buzzing with young professionals and growing families.

Key trends:

• Rapid metro rail connectivity (Phase II in progress)
• Increase in demand for premium apartments and gated villas
• Solid rental returns from tech employees
• Proximity to schools, hospitals and Lulu Mall

Kakkanad offers lower land rates than central Kochi, but with high appreciation potential, making it a prime emerging location for both homebuyers and real estate investors.

2.     Munnar & Surrounding Hill Stations (Idukki District)

Why it’s hot: Nature tourism + eco-friendly projects + NRI second homes

The hill regions of Idukki, especially Munnar, Anachal and Chinnakkanal, are witnessing an upsurge in demand for holiday homes, cottages and eco-stays.

Trends and reasons:

• Investors seeking farm stays and tea/coffee plantations
• Ideal for Airbnb-style vacation rentals
• Rise in sustainable and off-grid living concepts
• Good resale and rental value during tourist seasons

The cooler climate, scenic beauty and government interest in promoting ecotourism make these highlands an attractive long-term investment zone.

3.     Varkala (Thiruvananthapuram District)

Why it’s hot: Coastal development + tourism + wellness real estate

Often compared to Goa, Varkala is emerging as one of Kerala’s most sought-after coastal towns for property investment. The unique cliffside beach, yoga culture and growing café scene attract global travellers and digital nomads.

Why invest:

• Boom in boutique resorts and wellness homestays
• Surge in demand for sea-facing plots and villas
• Increasing popularity among NRIs for retirement homes
• Growing interest in co-living and co-working spaces

As infrastructure improves and global wellness tourism grows, Varkala’s real estate is ripe for appreciation.

4.     Kottayam Suburbs (Ettumanoor, Pala, Pampady)

Why it’s hot: Connectivity + calm lifestyle + demand for plotted development

Kottayam’s outer zones like Ettumanoor, Pala and Pampady are gaining ground among buyers seeking a balance between nature and connectivity.

Emerging trends:

• Excellent road and rail access to Kochi and Ernakulam
• Suitable for villa plots and mid-range housing
• Popular among NRIs from Central Travancore
• Educational and cultural hub attracting renters

With rising land values and well-developed civic infrastructure, Kottayam’s outskirts are set for long-term value creation.

5.     Wayanad (North Kerala)

Why it’s hot: Nature-based tourism + farm real estate + lifestyle appeal

Wayanad is gaining traction for farmhouses, resorts and organic farmland investments. The pleasant climate, untouched forests and strong tourism potential are drawing investors from other parts of India and abroad.

Investment prospects:

• Plots suitable for eco-resorts or plantation stays
• Interest from wellness retreats and yoga brands
• Increasing homestay registrations
• Excellent long-term capital appreciation in select zones

Wayanad offers the rare chance to combine nature, income, and lifestyle, making it a unique real estate segment.

6.     Kazhakootam (Thiruvananthapuram Tech Belt)

Why it’s hot: IT zone + infrastructure boom + demand from working professionals

Kazhakootam is Trivandrum’s answer to Kakkanad. Located near Technopark, this suburb is seeing heavy demand for residential flats, serviced apartments and rental units.

Key drivers:

• Presence of top IT firms, malls and hotels
• Smart City project and NH66 expansion nearby
• Student and professional rental demand
• Developers launching mid and luxury residential towers

Prices are still affordable compared to central Trivandrum, making Kazhakootam ideal for first-time investors and rental income seekers.

7.     Alappuzha Backwater Belt

Why it’s hot: Backwater tourism + premium villa plots + NRI nostalgia

Alappuzha, often called the “Venice of the East,” is seeing real estate growth beyond its central town, especially in Kumarakom, Kainakary and Pathiramanal regions.

Trends to watch:

• Demand for backwater-facing villas and houseboat-friendly jetties
• High demand for vacation homes from NRIs and domestic tourists
• Investments in resort development and Ayurvedic wellness centers
• New road infrastructure improving accessibility

With proper legal vetting and CRZ compliance, backwater real estate can be both emotionally and financially rewarding.

8.     Malappuram and Perinthalmanna

Why it’s hot: Gulf remittance-driven growth + urbanization

The Malappuram district, especially Perinthalmanna, is witnessing consistent growth due to high Gulf NRI activity and rising local demand.

Investment highlights:

• High-rise apartments, villas and premium retail spaces in demand
• Remittance inflow driving local buying power
• Mosques, schools and health care facilities improving every year

Investors interested in steady returns and strong community demand are eyeing this region closely.

9.     Kollam Suburbs and Bypass Zones

Why it’s hot: Bypass road development + untapped coastal property + proximity to capital city

Kollam’s outer zones, especially near Kundara, Chathannoor and Paravur are attracting attention as infrastructure improves.

What makes them promising:

• Close to both Trivandrum and Kollam city
• Coastal and backwater areas available at relatively low prices
• Demand for weekend homes, homestays and plotted developments
• Potential for real estate-led tourism around lakes and beaches

Kollam is quietly climbing the real estate radar in 2025.

Tips for Investing in Emerging Areas

While emerging locations offer great potential, investors should keep the following in mind:

✅ Verify land titles and zoning regulations

✅ Opt for RERA-registered builders

✅ Consider infrastructure growth (roads, schools, hospitals)

✅ Know the local demand profile (rental, resale, seasonal)

✅ Be aware of CRZ rules and environmental clearances in sensitive areas

Conclusion: The Future is Beyond the Metro

Kerala’s real estate scene in 2025 is evolving beyond traditional metros. While Kochi and Trivandrum remain key anchors, secondary towns, nature-rich zones and IT suburbs are quickly rising as serious contenders for smart real estate investments.

With infrastructure upgrades, changing lifestyle demands and NRI interest, these emerging areas offer high potential for capital appreciation, rental income and quality living.

If you’re planning to diversify your property portfolio, these destinations should definitely be on your radar.