Is 2022 the best time to buy an apartment in Kolkata?

By Pratik Balasaria

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If you’ve been looking for an apartment in Kolkata, experts say that now is the right time to buy. Home buying is not just a financial decision but also a very personal one. Often times it is the largest investment people make during their lifetime.

According to real estate experts, now is the right time to buy a home. There are multiple reasons for this. Interest rates at their lowest level and the property market is holding on to affordable rates. Demand for properties in Kolkata is at an all time high. Many real estate builders in Kolkata are also offering home buyers some great offers to buy an apartment in Kolkata. All of these reasons combined make it a great time to buy an apartment in Kolkata. Another important factor to note is that realty prices are set to rise in the next six months to a year. The Bengal chapter of the Confederation of Real Estate Developer’s Association of India (CREDAI) predicts the cost of the affordable housing sector to rise. This is set to happen in the immediate aftermath of rising input costs.

Benefits of buying an apartment in Kolkata now

Let us explore some other factors that make right now, a more opportune time for buying flats in Kolkata.

1. Improved Affordability

Affordability is a result of three factors, house price, income levels, and home loan rates. As house prices have remained consistently flat for the past five years, affordability has improved. Experts say that the affordability to buy an apartment in Kolkata has never been as good as it is now. Property prices remaining stable in the past five years have contributed to the rising affordability. Many people have also seen better job prospects post the pandemics scare. After two years of pay cuts, many people have also seen a restoration of their salaries. As a result, the ratio between the price of a house in Kolkata and annual income has hit a multi-year low of 3.2 times.

2. Falling Interest Rates

The decline in interest rates of home loans helps prospective homebuyers take bigger home loans. Since more than 90% of homebuyers use housing loans, this is very good news for those wanting to purchase flats in Kolkata for sale.

3. Rise in the Launch of New Projects

Encouraged by this rise in demand, many builders have started launching new projects. From luxury flats in Kolkata to affordable 1 and 2 bhk homes, there have also been new launches across several categories. This number is also might go up in the third quarter.

4. Property Prices in Kolkata may go up by 10% in the Next 6 – 12 Months, as per Reports by CREDAI

If you have been considering buying an apartment in Kolkata, now is best to do so before property prices rise. Due to increasing raw material prices, builders margins have been affected. Thus properties at Kolkata are expected to witness a hike of Rs. 350 to Rs. 400 per sq ft. Real estate developers in Kolkata say that construction cost has also gone up by 12% in the past one year and labour cost has increased by almost 20% for builders. This has had a considerable impact on the real estate industry and could see a domino effect of rising property prices in the next one year or even sooner.

Grab the opportunity to get the best apartment in Kolkata

With Covid fears subsiding, and economic prospects improving, this is truly the best time for homebuyers to purchase an apartment in Kolkata.

FAQs

1. Is now a good time to buy an apartment in Kolkata?

Many real estate builders in Kolkata are also offering home buyers some great offers to buy an apartment in Kolkata. All of these reasons combined make it a great time to buy an apartment in Kolkata. Another important factor to note is that realty prices are set to rise in the next six months to a year. The Bengal chapter of the Confederation of Real Estate Developer’s Association of India (CREDAI) predicts the cost of the affordable housing sector to rise. This is set to happen in the immediate aftermath of rising input costs.

2. Is it good to buy a flat in Kolkata?

A number of new initiatives introduced by the government in the recent years have made it easier than ever to buy a house in Kolkata. These include a number of subsidies and incentives such as relaxation in stamp duties, GST waivers etc. There has truly not been a better time to purchase a property in Kolkata.

3. Are property prices set to increase in Kolkata?

Due to increasing raw material prices, builders margins have been affected. Thus properties at Kolkata are expected to witness a hike of Rs. 350 to Rs. 400 per sq ft. Real estate developers in Kolkata say that construction cost has gone up by 12% in the past one year and labour cost has increased by almost 20% for builders. This has had a considerable impact on the real estate industry and could see a domino effect of rising property prices in the next one year or even sooner.

4. What were the twin SOPS announced during the state budget that have affected the sales of apartments in Kolkata?

The government announced a 2% cut in stamp duty and a 10% reduction in circle rates for registration of properties. These two measures helped real estate Kolkata pick up sales. The industry is forecasting all-time record sales in the real estate industry this year. Sales have been unexpectedly brisk since July, when the government announced a 2% cut in stamp duty and a 10% reduction in circle rates for registration of properties at Kolkata.