On one side, where the entire nation is crumbling under the pressure of an unstable real estate market and associated fluctuations, there is one city, which is away from the repercussions.. It is Kolkata, a rather populated city, is through a phase of property appreciation and witnessing high demands from property buyers and investors alike. Kolkata has also recorded an increased demand of commercial spaces.
Key Growth Influencers
Outlined below are some of the key influencers contributing to a robust growth in Kolkata’s real estate market:
- Extension of the already functional metro project is expected to lower traffic volumes in the localities and will clear the bottlenecks, thereby reinforcing the attractiveness index of the location.
- Builders are collaborating with the government and are slated to launch more cost-effective residential projects, to bridge the gap between supply and demand in affordable segment.
- Since there has been no new launches in the luxury segment, there is no pending build up inventory.
- Inclusion of flexible floor area ratio in property sales is further adding an appeal to the city’s residential property.
Interestingly, real estate dynamics of Kolkata has been similar to that of a Tier 2 city. At around 2% of the national absorption, as compared to Delhi & NCR contributing 40%, Mumbai & Navi Mumbai and Pune with 30% and 11% respectively, the overall absorption has been quite a matter of concern for the realtors. However, builders are still alluring the homebuyers to invest in modern projects via promising the world class facilities and gated community living.
Price movements in Kolkata realty market these days is commendable. With no less than 8 -10% growth in the LIG and MIG segment, Kolkata property market is one of the sharpest growing markets across India.
Development of Suburbs
Suburban areas of Kolkata are witnessing residential project launches almost every quarter, and remain the main driving factors for the growth of the city’s real estate segment. Districts neighboring Kolkata, including Howrah, Hoogly, Nadia, North 24 Parganas and South 24 Parganas, have seen a boost in population, and the numbers stood at 13 – 18% increase over the past decade. Indeed, there is no dearth of the users who look out for property for rent in Kolkata and find living in suburbs better than the city. Such a scenario indicates towards moving of people from the city center to the suburbs for better living, close to nature, less pollution, as well as better urban infrastructure.
Most of these localities have welcomed wealthy and highly educated immigrants, thus earning the status of a luxurious part of Kolkata. Furthermore, suburbs serve as homes to renowned personalities and celebrities. These recently developed elite and modern neighborhoods of Kolkata house some gated community complexes and luxury apartments available in varying different sizes, at quite affordable prices.
Revamp of Old Structures
Kolkata has taken a cue from Mumbai, and is working hard on the revamp of the older residential as well as commercial structures now. Heritage homes are given a new look, while holding their original charm. Twin addresses in Kolkata—Alipore and Ballygung are the most talked about localities among industrialists in this regard. These areas are the most coveted localities with beautiful old structures that have been given a new look, with their market values added.
In a Nutshell
In the upcoming years, the realty market of Kolkata is expected to regain all its lost sheen. Demands are soaring, and hence are the supplies. Property segment of Kolkata looks for golden days ahead.