Kolkata has the 3rd highest number of HNIs (High Net-worth Individuals) in India; more than 9,600 millionaires call this city home. Sidestepping the general notion of the city as the capital of low-cost urbane living, the festive season for Kolkata’s real estate yielded impressive numbers.
The City of Joy’s luxury and ultra-luxury properties registered positive growth figures, withstanding the nervy Indian rupee and the mysterious GST.
Kolkata’s Real Estate Growth amidst new Government policies
With the humongous boom in real estate investments in this city, which housesmore than 5 million busy souls, the industry has skyrocketed over the past few quarters.
A spiralling low growth-high-income scenario, building up since 2008’s comeback, 2015 was marred by a weakening currency, current account deficits and worse, a drooping confidence in the economy among investors.
Every corner of the nation and every single investor were affected. Realty came to grinding standstill. But 2015 is past.
Today, Kolkata has become the Promised Land for realty investors!
With HIRA aiming to amp up the realty market, 2018 has seen a huge optimistic rise in the overall buying sentiment across urban spaces. Fast-tracked legal procedures, zero provisions for compounding offences, inclusion of car parking spaces as a part of the realty project; inspired investors and buyers alike are generating a strong resurgence.
Property prices in Kolkata continue to bear a touché of affordability, even in case of ultra-premium projects. The gusto of infrastructural developments added, real estate has emerged as a sector beckoning the modern metropolitan future of the city.
The Reality of Kolkata’s Realty
Beyond the budget INR 15 to 20 lakh properties or the techie-friendly INR 60 lakh plus apartments, Kolkata is booming with premium concierge-grade realty, flaunting haute couture amenities.
For the spendthrift’s haven that is Kolkata, the trending-now real estate chateaus boast of average price tags well above the INR 1 Crore mark. Getting the right home with the right agent is still in vogue. But realtors are taking an increasingly direct approach when it comes to top-end realty.
Upscale premium real estate is the fastest growing realty sector in Kolkata.
The largest real estate players are flocking in thick and fast since before this festive season, vying to grab a slice of a luxury-thirsty realty market. The demand for these properties will subside as the supply livens up with a number of ultra-luxury properties about to exit the pipeline.
Know the Ripe Buyer
Offers aplenty did bring the festivities to life, and first-time buyers finally had multiple choices for their dream abodes in Kolkata. Worth mentioning, customers from across the age demographics constitute the largest share of buyers by a long margin.
This is a much welcome (but predictable) change considering Kolkata is taking to the modern metropolis dogma albeit at a turtle’s pace. The around-30 families are the target consumers for upscale projects.
Slow but sure.
For a city which silently works in chaos, Kolkata is one of the largest spenders come festivities. Business exploded from September till October.
Kolkata’s signature Durga Puja, a cocktail of tradition and frolic, was a whopping INR 1 trillion extravaganza in 2018, and these figures are localised estimates. In comparison, a much more pan-Indian Ganesh Chaturthi amasses around INR 500 billion.
Kolkata starts early and takes the fireworks well into Diwali. The erstwhile Calcuttan may just brocade their newest ethnics to go house-hunting come Deepavali.
Undo the common belief that this past capital lacks capital. Kolkata is a hidden treasure trove, and the keys lay in upscale ultra-premium realty.
A Future to Look Forward To
Ultra-premium properties are more than simply luxury homes. They are right on the plausible limitations to exclusivity and personalisation.
They are Select
Although such commodities do not necessarily follow the basics of market economics, there are only so many buyers with the purchasing power and interests in properties ranging from INR 3.5 Crore and above.
Kolkata’s upscale real estate sector is expected to maintain its growth curve well into 2019, at least as far as residential are concerned. The rate of progress towards market saturation will depend strongly on the sellers.
Considering the price tags to such properties, the overall economic landscape will play its hand in under or over achieving the forecasts.
All-in-all, upscale ultra-luxury properties will scale throughout the upcoming financial quarters well into FY 2019. A struggling rupee will help the cause by drawing in strong NRI investments. But a riposte will fall well short of the target if the economy shows its fragilities instead. A strong industrial growth is the messiah on the horizon, something which this city looks to deliver in aces thanks to a massive working populace. Either way, Kolkata’s skyline is up for a luxe makeover!
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