Despite challenges like price hikes and increased interest rates, Kolkata’s real estate market witnesses a remarkable 19% growth in home sales revenue, reaching ₹9,025 crores till September. Affordable homes under ₹50 lakh continue to drive sales, supported by state initiatives. Explore the details of this resilient market performance.
Kolkata Real Estate Defies Odds: Records 19% Surge in Home Sales Revenue
The real estate market in Kolkata has showcased resilience, experiencing a noteworthy 19% increase in home sales revenue, totaling ₹9,025 crores until September. This growth comes despite challenges such as price hikes and rising interest rates.
Steadfast Demand for Affordable Homes
A recent report by real estate consultants Anarock Group revealed that Kolkata‘s home buyers navigated through price fluctuations and interest rate hikes, contributing to a substantial increase in sales value. Notably, homes priced under ₹50 lakh continued to attract buyers, distinguishing the city from other markets.
State Initiatives Drive Demand
The State Directorate of Registrations and Stamps Revenue reported the registration of 31,026 homes between January and September. Although this figure may not capture the total sales count, immediate registrations surged, attributed to the 2% incentive on stamp duty currently in effect. Initiatives by the state to reduce stamp duty and rationalize circle rates have significantly boosted demand.
Affordability Amid Rising Prices
While housing prices in Kolkata increased by 12% in July-September 2023 compared to the same period in 2022, the average prices in the Kolkata Metropolitan Area remain among the most affordable in the top eight cities of India. However, there has been an overall appreciation, with prices rising from around ₹5,000 pre-Covid to the current ₹7,406.
Changing Dynamics in Specific Localities
Certain localities have witnessed more significant price escalations. Premium projects in Ballygunge now command ₹25,000 per square foot, up from ₹18,000 in the past three years. Similarly, Tollygunge and Anandapur off EM Bypass have seen notable increases.
National Real Estate Landscape
In the top seven cities across India, the real estate sector experienced a 7% growth in sales, amounting to ₹3.5 lakh crore in the first nine months of the year. Projections suggest that the last quarter will contribute a minimum of ₹1 lakh crore, propelling the total sales value for the year beyond ₹4.5 lakh crore.
Conclusion: Positive Trajectory Despite Challenges
In conclusion, Kolkata’s real estate market demonstrates a positive trajectory, with a significant surge in home sales revenue. The city’s ability to sustain demand for affordable homes, coupled with supportive state initiatives, positions it favorably amidst broader challenges in the real estate landscape.