Skycity Project - Kochi

Yasoram Skycity - Cochin

Yasoram Skycity is a Flyover, designed with the prime intention of reducing traffic in Kochi City and for boosting tourism and economic activity of the region.

The Skycity will extend from Kundannoor near NH 47 Byepass in the south to Sahodaran Ayyappan Road in the north, passing above the Chilavannoor Bund Road and the Backwaters. Another stretch of the Skycity will extend from the Sahodaran Ayyappan Road to the Subhash Chandrabose Road

• Flyover bridge that runs 30 ft above land and backwaters
• 3 storied shopping complexes, residential apartments and commercial hubs
• Supermarkets, community halls, entertainment multiplexes, restaurants, hotels, garment and jewellery showrooms, two and three wheeler automobile showrooms etc.
• Corporate offices, business centres, IT/ITES and BPO operations, Banking and financial institutions etc.
• Amusement centres, health centres, water sports facility, oceanarium, theme park
• 12 m wide 4 lane expressway
• 5 m wide car parking on both sides of the road and additional car parking on the building top – facility can accomodate 7,500 cars in all
• 2 m wide footpaths on both sides
• 6.6 m wide building on base floor and 8.6 m wide building on the first and second floors on both sides
• Cable car at an 80 ft height offering panoramic view of Kochi city

Yasoram Skycity - Executive Summary

Increasing urban population, increasing vehicular traffic and increasing pressure on urban road infrastructure have been problems faced by metropolises all over the world, especially in the developing countries. The problem is further compounded by the unavailability of adequate space for horizontal expansion.  Vertical expansion is the only solution for creating more residential and commercial space in cities like Kochi that are flanked by the ocean on one side and hills on the other.

Yasoram Group, a Kochi based organization has come out with a novel solution to Kochi’s infrastructure problem. The 30 ft high ‘Sky City’ flyover as it is called is designed to consume very little urban space while still solving the traffic problem to a large extent. Besides, all vehicles will be allowed toll free passage through the Sky City’s road. The construction cost, financing cost, maintenance costs and returns to the investor will come from the sale of commercial space that will be developed above the flyover.

As the Sky City is the first of its kind in the world, Yasoram Group has registered for global patents for the Sky City.

Cochin (Kochi) – An Economic Profile

The Ernakulam District, which has an area of 895.3Sq.Km, has been divided geographically as Highland, Midland and Coastal area.  The average altitude of Highland is about 1000 feet. The borders of the district are the Arabian Sea in the West, Thrissur District in the North, Idukki District in the East and Alappuzha and Kottayam Districts in the South. 

Kochi, located in Ernakulam district, has long been eulogised in tourist literature as the “Queen of the Arabian Sea”, reflecting her beauty and long-standing maritime importance, today enjoys a locational advantage in a globalizing world. 

The economic importance of Kochi can be summed up as follows:

• Strategic location on the transnational trade corridor
• Rich natural resources - minerals, marine products, agro-products
• 100% literate workforce in Ernakulam.
• Highest number of skilled, productive manpower,
• Highest density of science and technology personnel in India.
• Excellent communication network
• World class health care system with lowest infant mortality rate and highest life expectancy in the country
• Liberalized industrial policy facilitating foreign participation technology transfer, equity participation, off-shore sourcing
• Tourist hotspot in India and resort-town ambience.

Increasing Demand for Road Infrastructure

Good roads, which can carry containers and heavy loads, are essential for the State especially when Kerala has a major full-fledged Port in Kochi. During FY 2003-04, the Kochi Port earned an operating income of Rs.203.25 crores which indicates the volume of goods which reach Kochi as exports and imports.

Kochi is one of the premier ports in India, which has introduced containerisation in cargo handling.  As most of the general cargo items passing through the Port are amenable to containerisation, the progress made has been steady. The Port has seen a spurt in Container Traffic during the past year. In 2003-04 the Port handled 169965 containers, the total volume of container cargo being 21.25 lakhs tonnes. The imported cargo is transported to various parts of the State in trucks. Similarly, goods meant for export are moved to the Port by road. Apart from traditional items of cargo, a number of new items of cargo are also now being exported in containers through the Port.

Kochi International Airport is the first green field airport in private sector in India, with facilities matching International Standards. Kochi is strategically located in the international air map. Three major international air routes intersect near Kochi. The integrated cargo complex at the airport handles perishable/non perishable cargo.

Besides national carriers like Air India and Indian Airlines many domestic and foreign Airlines also operate from the Kochi International Airport bringing in hundreds of passengers to Kochi everyday. Since most of the Hotels are situated in the western side of Ernakulam the road journey of Tourists from Airport to Kochi City is difficult and time consuming. Hundreds of passengers reach Kochi everyday by Train and Bus also.

When the Container Trans-shipment Terminal in Vallrpadom and LNG Terminal in Puthuvyppu are commissioned the road traffic pressure will increase many folds beyond the planners’ predictions.

Infrastructure Problem in Kochi

Kochi city is basically a collection of islands and narrow peninsulas and is mainly divided into Ernakulam, Willington Island, Mattancherry and Fort Kochi spreading over approximately  87 sq.kms.

Tailor-made financial schemes of Banks and other agencies have resulted in the vehicle boom with more cars and vans being added to the vehicle fleet. There is a matching rise in the sale of scooters and motorbikes as well, crowding the roads of Kochi. This is apart from the omni buses, tractors, trailers, tillers, school buses, goods vehicles, lorries, ambulances, heavy vehicles, jeeps, auto-rickshaws and taxis that ply on the roads. Every year about 1000 auto-rickshaws are added in Kochi alone. When 30,000 vehicles get added to the already soaring figures of vehicles on Kochi roads, the very narrow lanes of the city are inadequate for the increased traffic.

Kochi roads are hit not only by the vehicles of the metro but also by hundreds of vehicles entering from neighbouring districts with people flooding into the city to attend workplaces and institutions or on shopping sprees. During last year the number of accidents in Kochi alone was about 4000 as per Police statistics. The number of deaths was also stunning.

Since the city has absorbed neighboring islands with Goshree Bridges it is high time to think of newer options to contain the crowd emerging through the Vypin Island. Nowadays a good number of vehicles coming from the north by National Highway-17 turn left at North Parur to have a faster and easier route to Ernakulam via Vypin.

Educational Institutions put heavy traffic pressure except on holidays. There are 993 schools in Ernakulam revenue district. Out of these 369 are Government schools, 552 are Aided-private schools, 72 are Unaided-private schools. Imagine the traffic pressure due to students’ inflow!

Most of the roads tend to crack up with a day's rain and many newly re-surfaced roads are damaged instantly. Widening of existing roads becomes impossible since land acquisition hinders road development.

Kerala has a road length of 1.42 lakh Kms. The percentage of surface roads to total roads is only 31% in Kerala compared to the all India figures of 57%. The total length of national Highways in the Sate is 1560 kms. It just constitutes only 2.7% of the total national Highways in the Country. The total vehicle population is 19.10 lakh. Panchayaths have nearly 665 of the road sector and then come Corporations, Municipalities, State PWD, National Highway, Irrigation, Forest and Electricity departments.  Vehicle tax is the fourth largest revenue earner for the Government. But only less than 1% is provided back for the maintenance of roads. 

Growing at an amazing speed, Kochi today is extending its capacity to the limits and the civic amenities have reached a breaking point.  The mode of transit in this city of 1.7 million, from one end to the other, has now reached a dead end as the congested roads and the transport system are inadequate.

The poor condition of roads compared to international standards and the alarming increase in road accidents are the other factors that deserve serious consideration.  The land acquisition cost creates cost escalation and delays in implementation. The other problem is intercity travel. In a city like Kochi, there is no possibility for road expansion. The City is so congested and population density is so high. That makes us to think of new models of transportation systems. 

Flyovers are the only possible solution in a place like Kochi, where land is scarce and people are reluctant to relinquish it. Existing roads cannot hold the traffic volume any more. In this context, SKY CITY FLY-OVER HIGHWAYS are the most practical alternatives in Cities like Kochi. And in this context Yasoram Group, has proposed SKYCITY for Kochi.

Skycity flyover highway

Yasoram Skycity - An ambitious project by the renowned Yasoram Group and designed by its founder and Chief Consultant, Sri A. R. S. Vadhyar is a unique flyover. Yasoraminfra Developers Private Limited, a group company is spearheading the construction of the flyover.

It is designed with the prime intention of reducing traffic in Kochi city and boosting tourism and economic activity in the region.

The project will run through the city, 30 ft. above the land and backwaters, without affecting its basic arterial road system. It will contain three-storied shopping complexes, residential apartments and commercial hubs at vantage points. The flyover will contain multi-storied shopping complexes and commercial hubs at vantage points. It will also have amusement centres, facility for watersports and yatching, supermarkets, community halls, international convention centres, entertainment multiplexes, motor vehicle show rooms, educational institutions, garment show rooms, jewelleries etc. Important roads will have approach points in the highway. 

The 4 km long Skycity will have 14 m wide buildings in the centre flanked by 2 m wide footpaths, 4.5 m wide car parking spaces, and 7.5 m wide roads on both sides. There will be additional facility to park cars on top of the buildings. A ramp will help transport cars to the rooftop parking. There will also be a helipad on the Skycity.

On the top of the Skycity, there will be a cable car which will offer a panoramic view of Kochi from the Western Ghats to the Arabian sea. This will be a definite bonus to Kochi’s tourism industry.

 In keeping with the norms of the Inland Waterways Authority, a 7m clearance will be provided between the water level and the bottom most point of the Skycity’s beam. There will be no hindrance to water transport beneath the flyover.

Sale of commercial and residential space along the elevated transit system would be sufficient to pay off the loan amount that would be spent for construction. A corpus fund would be generated for the regular maintenance of the Sky City. All vehicles would be allowed toll free passage through the Sky City. The project would be funded by private equity and debt from financial institutions, with no financial liability of any kind, on the government.

The Skycity will extend from Kundannur near NH 47 Byepass in the south east to Sahodaran Ayyappan Road in the north west, passing above the Chilavannur Bund Road and the backwaters. Another stretch of the Skycity will extend from Sahodaran Ayyappan Road to Subhash Chandra Bose Road.

Vehicles coming from areas like Mattancherry, Fort Kochi and Palluruthy can enter Yasoram Skycity through Chilavannur Bund Road and then enter the highway to the north of Vyttila junction via Subhash Chandra Bose Road. The  construction of a railway overbridge near Atlantis junction and a road connecting Panampilly Nagar to the Skycity will ensure uninterrupted movement of these vehicles. This will enable them to proceed to places like Aluva, Angamaly and Airport, without having to pass through the congested city roads.

Traffic from the city proceeding southwards can enter Yasoram Skycity through the Chilavannur Bund Road and then enter the highway at Kundannur, thus reducing the driving distance. Further, this would relieve Valanjambalam, South overbridge, Sahodaran Ayyappan Road and Vyttila Junction of their perennial traffic jam.

The Sky City is a project that will attract world class business and commercial establishments including a Global Trade Centre.  A majority of traffic entering Kochi city is for the purpose of shopping. The creation of additional shopping and commercial space of high standard on the Sky City will help in diverting a large portion of this traffic away from M.G. Road, Broadway (currently the busiest centres in Kochi) etc. towards the Sky City fly over. On commissioning, Yasoram Sky City is posed to become the only road in Kochi City with adequate provision for car parking both at the ground level and at the top of the buildings. This will be a major attraction for commercial establishments to set shop atop Yasoram Sky City.

In short, the Sky City project would have direct physical benefits like reduction of traffic congestion, reduction in the number of accidents, smoother movement of cargo and container traffic, remarkable saving of fuel for vehicles, better parking facilities, increase in the quantity and quality of shopping and commercial activity. The Sky City would further enhance the growth of Kochi’s burgeoning tourism industry.

There would also be financial advantages like revenue for the state government in terms of Stamp duty and Registration fee from the purchasers, Building tax from the owners of property and Sales tax revenue from the increased business. The Central Government would benefit in terms of increased service tax, income tax etc. from the business community while the Kochi Corporation would benefit in terms of property tax, professional tax etc. On completion of the project, the road and footpath would become property of the State Government. Last but not the least, Kochi Sky City’s 17 lac sq. ft. commercial space will generate employment for at least 17,000 people.

The route map of the Kochi Sky City Project

The Environment and Emerging Business Trends

Currently there is very high demand for real estate space, both of the residential and commercial type. The yield on the commercial space is much higher than that of residential real estate. The overall confidence level created in the city has started continuous stream of incoming MNCs. Falling interest rates, uncertainties in the Middle East following the war in Iraq and a rejuvenated environment created by the dynamic changes in the Indian Banking industry have also added to the push in the demand for real estate. The real estate scenario experiences a ten year cycle and the industry has just turned the bend. The BPO sector is also likely to add to the demand for office space, with the bandwidth connectivity luring business enterprises to look at Kochi as apotential investment destination. 

Besides local developers, some developers from Bangalore and Nagpur are also investing in Kochi. The Sahara group has finalized the land in which it plans to develop a township. Emaar, a Dubai based developer is scouting for large areas in the city. A Saudi Arabian delegation has also shortlisted Kochi as one of the cities for huge realty development.

Analysts have estimated that unlike the unprecedented boom that gripped the market a decade ago, the growth trend in the property sector will hold out this time because there are more real buyers this time.

Waterfronts are the most-sought-after real estate zones, because the charm of living in a flat overlooking one of the city's watery expanses is special. Views that will remain unhindered and the steady breeze that blows through these flats are attractive features. And builders have found that waterfront properties sell well and command premium prices. 

With increasing demand coupled with unavailability of space, Kochi is now expanding towards the east to Kakkanad, a hilly village that fast becoming a new city hub. The District Collectorate and the Kochi Export Processing Zone are now located in Kakkanad. Now, with new projects such as the Smart City (a project of Dubai International Holdings) in the offing, the eastern suburbs of Ernakulam, including Kakkanad, are experiencing unprecedented spurt in land purchase and construction. Another major project, the Vallarpadom Container terminal project has also caused an increase in demand for real estate space.

The Market for Commercial Real Estate

The size of India’s retail sector stands at about Rs. 900,000 crores. Within this, the organized retail sector forms a small part at Rs. 33,000 crores. It is now expected to grow at the rate of 25 – 20% per year. The extension of concessional import duty scheme for organized retailers with a minimum area of 1000 sq. metres and the implementation of VAT will also significantly help retailing. Clothing and textiles account for 36% of the organized retail market followed by watches and jewelry (17%) and then food and grocery (14%). Kochi, one of Kerala’s major retail hubs will gain significantly from the retail boom. The Indian hospitality industry has also felt the impetus of economic liberalization. For the first time in four years, the falling occupancy levels have seen a rebound. Currently occupancy levels stand at 60%, 5% higher than that of last year. In Kochi, the occupancy level stood well above the average at 69%.  There was also a significant increase in the revenue per available room.

The Indian Entertainment industry, is growing at a CAGR of about 18% and is expected to increase from the current Rs. 20,000 crores to Rs. 45,000 crores by the year 2009. With the end of the film industry controversy in Kerala,the industry is also poised to boom here. With the film industry trend moving towards digital films, the end of piracy is near and hence added growth potential.

In spite of the significant growth in the number of educational institutions, there is always an insatiated demand for more and more graduate as well as post graduate educational institutions.  With more than 4 million employees, the Indian healthcare industry is one of the largest service sectors in the Indian economy. It is expected to grow to the size of Rs. 270,000 crores by the year 2012. The coming of several large multi and super speciality hospitals has indicated that Kochi is a good location for setting up top end health care facilities.

A study conducted by ICICI Property Services has identified Kochi as the No. 1 location for locating ITES / BPO operations in the country. This industry is also a large-scale consumer of real estate space.

All these industries contribute to real estate space requirement in Kochi, where the demand is already high due to its burgeoning middle class with a high purchasing power:

• Super market and hyper market chains
• Garment and Jewellery shops
• Restaurants and Hotels
• Two and Three wheeler dealers
• Entertainment Multiplexes
• Educational Institutions and hospitals
• Community halls and Convention centers
• IT /TES and BPO operations
• High profile real estate investors in Kerala and also in other parts of India (secondary real estate market)

Competition

Clearly, the sky rocketing prices of urban commercial real estate all over the world indicate a huge mismatch between demand and supply. We do not perceive too much competition from existing real estate space as the way Sky City is positioned clearly differentiates it from existing real estate space either in Kerala or for that matter, India. However, considering the fact that we are targeting international commercial real estate shoppers, competition may come from high quality commercial space offered by South East Asian and Middle East countries. The comprehensive international marketing plan for Sky City will be made keeping this in mind.