After hypermarkets and hospital chains, Kerala is set to see a series of large-scale commercial real estate projects such as IT and tech parks by leading business groups in the UAE and the wider region promoted by businessmen from the state.
While the Yusuff Ali-promoted LuLu Group is already in the process of setting up a twin-tower project for IT companies in Kochi and has plans for more such projects, similar investments in the commercial real estate sector by several other Kerala-origin promoted business groups are also expected to be finalised soon, the state’s industries minister P Rajeeve told Arabian Business.
Kerala is also gearing up to develop several dedicated infrastructural facilities such as opening a business jet terminal at Kochi Airport to promote medical and MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism from the Gulf region in a big way.
“Kerala has age-old trade and cultural ties with countries in the Middle East region, and the state has been seeing an increased inflow of visitors from the region of late. We have now identified two specific segments – medical tourism – including wellness-cum-leisure tourism – and – MICE-related business travel from the Arab region for focussed promotion,” Rajeeve told Arabian Business in an interview.
The minister said the state government is also in talks with several private sector players to set up high-end hospitality projects as part of its efforts to promote MICE tourism and related activities in the state.
Kerala’s IT sector attracts Gulf investors
The minister said with Kerala fast emerging as a major hub for hosting globally and regionally leading technology and IT companies, some of the leading NRI (non-resident Indian)-promoted business groups in the UAE and other countries in the Middle East are seeing great potential in investing in commercial real estate sector in the state.
The new trend of several multinational companies setting up their Global Capability Centres (GCCs) is another factor which is attracting these groups to step up their investment plans in their home state, he said.
“While groups such as LuLu have already announced projects in this sector, discussions are ongoing with several other NRI businessmen based in the Gulf region for investments in such projects. The state government will consider offering major incentives, including tax reliefs for facilitating and accelerating investments by these groups,” Rajeeve said.
Leading Indian developers such as the Brigade Group, with a presence in the UAE, and Prestige Group, which has tied up with Abu Dhabi Investment Authority (ADIA) and Kotak Alternate Investment Fund for a $2.12 billion in funding to develop residential projects in India, are also among the companies which are to set up IT park projects in the state, the minister said.
The LuLu Group’s twin-tower IT project, being implemented by LuLu IT Infra Build in the Smart City Township project in the central Kerala district of Ernakulam, aims to host several international companies in the facility.
The Lulu IT towers, billed as amongst the largest IT commercial buildings in South India, are scheduled to open in the first quarter of 2025.
Series of 5-star hotels to promote MICE, business tourism
The minister said as many as five more 5-star hotels are scheduled to come up in the state over the next few months, further aiding the state’s efforts to promote MICE and business-related travel activities.
“Kerala tops in India in terms of the number of 5-star hotels – at 46 currently – and this will see further rise over the next few years as tourism activities, especially in the MICE and business segments, pick up in a big way,” he said.
Several international and Indian hospitality groups, including the ITC group, will be among the companies which will be setting up new 5-star hotels in Kerala, the minister said.
Besides the hotel projects, the minister said the state will also invest heavily in developing various infrastructure to promote tourism-related projects.
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