Kerala: Not many occupants, but there is a boom in house constructions

A 1000-unit multi tower apartment complex near the Info Park and Smart City cyber infrastructure in Kakkanad, Kochi, has around 200 vacant units. These flats are not abandoned but remain uninhabited because the owners are either away or have another residence.

Janardhanan Vasudev, an engineer working abroad, owns two flats in the specific housing complex. He stays in one when he comes for vacations, while the other one remains locked.

“I do not live in Kerala, but I need a place here for my family to visit twice or thrice a year,” says Vasudev. He is cautious not to mention his other property, which has remained closed since it was handed over to him by the builder.

Boom in constructions post COVID

While the case of unoccupied flats is not new to Kerala, what is starling is the number of constructions has gone up exponentially, especially after COVID-19 pandemic.

According to the Building Statistics report prepared by the Directorate of Economics and Statistics on the state's construction sector for 2021-22, 395,000 buildings were newly registered in Kerala of which at least 290,000 were residential houses.

The statistics released last week show that the number of buildings constructed in 2021-22 was 11.22 per cent higher than the previous year. The report suggests that the main reason for the increase is the improvement in people's income after the COVID-19 crisis.

“Kerala witnessed the construction of a total of 2,91,217 residential buildings during the 2021-22 fiscal. This substantial number highlights the state's commitment to meeting the housing needs of its residents. Out of total 2,91,217 residential buildings constructed in 2021-22, 2,86,731 (98.46 per cent) are dwelling houses and remaining 4,486 (1.54 per cent) are other types of residential units, including out-houses and shelter homes. Among all buildings newly built in 2021-22, about 73.58 per cent are residential buildings,” reads the report.

Malappuram leads the way

According to the report, Malappuram district leads in the construction with 53,774 newly built buildings having come up in the said fiscal. Idukki recorded the least constructions, with 8,751 buildings built during this period.

The significant increase in constructions in Malappuram district can be attributed to factors such as population growth, urbanisation, and economic development from foreign remittances.

According to the State Planning Board's 2022 data, it was found that individuals in both rural and urban areas are constructing disproportionately large houses to meet their needs.

Multiple abodes and migration

Additionally, many families own multiple houses. Out of these, 1 to 1.5 million houses remain vacant in rural and urban areas. This trend is more prevalent among upper-middle or affluent families, according to the report. This is one of the reasons for the rise in empty houses both in urban and rural parts of Kerala.

According to Dr S Irudayarajan, the chair of Institute for Migration and Development Studies, Thiruvananthapuram, migration is a major reason for the closure of houses in Kerala.

Many Keralites build homes in their villages using their life savings, especially those who migrated to the Gulf in the 1960s and 1970s. Now, many are moving to Western countries. For instance, 30 per cent of Keralites in Toronto previously lived in Gulf countries. Unlike their parents, the younger generation migrating to the UK, Canada, Australia, or New Zealand does not plan to return, indicating a lasting trend.

Lion’s share of buildings owned by private entities

Meanwhile, only 26.42 per cent of the total construction in 2021-22 comprised non-residential buildings, including commercial and industrial structures. In the non-residential category, 85.52 per cent were for commercial purposes. Only 4.87 per cent and 2.53 per cent were for industrial and institutional sectors, respectively.

The report also indicated that the state government's contribution to new concrete constructions is minimal. Of the total 3,95,803 buildings constructed in 2021-22, 97.76 per cent were private, 0.76 per cent were government or local bodies, and 1.48 per cent were others.

The State Rural Industry and Economic Activity Report indicates that 70.96 per cent of the houses built in recent years are in rural areas and 29.04 per cent are in urban areas. The largest portion of non-residential buildings – 69.62 per cent – is also in rural areas. Of the new buildings constructed in 2021-22, approximately 85.13 per cent of industrial buildings and 73.74 per cent of institutional buildings were built in rural areas.