Kolkata Property Market Bounces Back Strongly After Pandemic

1. TaTarealty.in Kolkata Property Market Bounces Back Strongly After Pandemic There is skyrocketing demand for a flat for sale in most parts of Kolkata today, including the rapidly expanding northern areas of Rajarhat-Newtown and also southern fringes. The city has witnessed steady increases in enquiries for flats near me in multiple categories. The pandemic has given way to the revival of the housing market across almost all categories. There is higher demand for luxury flats at premier projects while people are choosing bigger and more spacious 3 BHK flats and larger properties that offer more amenities and a better quality of life. At the same time, the usual 2 BHK configuration is also selling well throughout several popular micro-markets. The overhang of residential inventory or the forecasted time to sell the same has reportedly come down by 50% over five years. Demand has increased rapidly due to Government incentives and the outbreak of the pandemic in 2020. Why the Kolkata Real Estate Market is in Growth Mode Reports indicate how Kolkata has the second-lowest overhang of inventory amongst India’s leading seven cities, at around 20 months along with Chennai and Pune. Bangalore is at number one with inventory overhang of just 13 months. Any figure between 18-24 month is usually perceived as healthy, which clearly points to the recovery of the market in Kolkata, where inventory overhang stood at 46 months in January-March, 2018. Here are some key points that indicate the gradual growth of the market: • Higher demand for luxury flats and gated communities. • Several premier projects are coming up in prime locations including Tata 88 East in the ultra- exclusive neighborhood of Alipore and Tata Avenida in the fast-growing commercial and residential hub of Rajarhat.

2. TaTarealty.in • Demand has gone up with more people realizing that a home upgrade is necessary during the pandemic. Many people have switched to home ownership from rental units, while some have upgraded to bigger homes from smaller ones. • The Government of West Bengal also slashed circle rates and stamp duties from July, 2021, thereby incentivizing home registrations and purchases. • July 2021 to February 2023 saw 83,164+ residential units being registered ever since the Government’s scheme was implemented. This indicated 76% of growth as compared to the earlier 18-month period between January 2020 and June 2021 (47,317 homes were registered). • Combined residential real estate values sold in the city surpassed Rs. 10,000 crores for FY23. This was majorly driven by swift apartment sales, higher prices of units, and visible increase in demand in the luxury category. • This was a new milestone, indicating 38% value growth as compared to the year-ago period, while volumes also went up by 31%, indicating higher ticket-sizes for residential units. • The sales value was Rs. 10,660 crores for FY23 as compared to FY22’s tally of Rs. 7,720 crores. • 16,392 apartments were sold in this period as compared to 21,415 units in FY23 based on reports. • The extension of the circle rate and stamp duty rebate was a major growth drive in this case. • Demand has clearly increased for apartments sized between 500 and 1000 sq. ft. and even those exceeding 1000 sq. ft. • Prices have also appreciated in the market, going up by around 10-15% in 2022 before stabilizing once again at higher levels. Signing Off Kolkata’s real estate market looks set to reap the benefits of higher demand, more traction in the luxury property segment, and steady infrastructural growth across almost all zones and micro-markets. The expansion of the metro railway network and connectivity improvements will further boost the market in the future.