According to a survey by the Economic Times, investment in real estate Kolkata reported an 11% growth in last year’s September quarter. Besides, properties at Kolkata have the largest market in Eastern India and have ranked above the major property markets such as Gurgaon, Noida, and Mumbai in terms of growth in the last 10 years. Furthermore, the survey also ascertains that Kolkata has the largest unsold inventories, especially due to COVID-19, despite of which the market size ranks at number three after Bengaluru and Pune.
Real Estate Kolkata has maintained a steady graph
In rapidly growing urban cities like Mumbai, Bengaluru, and Hyderabad, the property markets yield faster growth, in contrast to sale of properties in Kolkata. The real estate graph has been steady, especially in the domain of residential flats in Kolkata. The impact-resistant characteristic of Real Estate Kolkata has been a crucial contributor to why major players from the realty sector are investing in properties at Kolkata, particularly in the current slow-down trend of the market.
The recent surge in investment in real estate is attributed to great tolerance to market blows. This has increased the attractive index of the city’s real estate market graph, producing a healthy market for sale of flats in Kolkata. Furthermore, several launches of new residential projects for flats in Kolkata north, and upcoming residential projects for flats in Kolkata south. Besides Kolkata has overtaken major up-market cities in the affordable real-estate market with projects launched for low budget flats in Kolkata, and cheap flats in Kolkata, therefore with realty costs decreasing, investment in real estate Kolkata is increasing.
Kolkata’s emerging IT hub offers higher USP for residential properties
Although Kolkata joined the bandwagon of popular IT city culture much later, today Real Estate Kolkata has become a preferred choice for IT corporations such as Cognizant, Infosys, TCS, and Wipro, among others. The city is also becoming a preferred alternative for start-ups, thus contributing to the rise in the Kolkata economy. This change is followed by major infrastructural developments in the city such as East-West Metro, and proposed government projects such as SEZ in New Town, thus adding to the market value of the city.
Baruipur, Behala, Barasat, Joka, Garia, Sonarpur, Rajarhat, New town, Madhyamgram, Howrah have become prime hotspots for expansions of real estate properties in Kolkata. With easy commute to the heart of the city and good schools, banks, hospitals, and business hubs in the vicinity, real estate developers are zeroing on these locations for infrastructurally smart luxurious flats in Kolkata.
Furthermore, with metro connectivity and EM bypass, these business areas are specifically preferred by IT professionals. Besides, with the international airport and the IT hub conveniently connected, new flats in Kolkata have developed a great value for money.
Flats in Kolkata New Town, flats in Kolkata salt lake, and flats in Kolkata near the airport offer a perfect blend of modern and old architecture in the heritage city of Kolkata. With fast transportation, and residential projects by some of the best builders, the USP of these residential areas is clearly its location
With other major metro cities experiencing market saturation, upcoming cities like Kolkata have all the indicators of becoming a market favorite. Investment in real estate Kolkata insinuates a lucrative market for active investments like rent, while also promising more scope in the future.
Properties in Kolkata offer greater affordability than other cities
After a poor financial performance of two consecutive years, investment in real estate Kolkata plummeted in the absorption rate, leading to a remarkable growth in the absorption prices in the present market. The launches from major real estate developers also contributed to growth in the quarterly supply.
Furthermore, the pandemic has created a massive demand for mid-segment and affordable housing. This trend is bound to boost sales in investment in real estate. Real estate developers are investing in low-inflated states like Kolkata, owing to the fluctuating equity markets. This makes Kolkata a smart investment option during the pandemic period.
Besides, housing interest has hit the lowest level, which is bound to foster investment in real estate with the highest ROI. The lower interest rates will also fuel demand for luxury flats in Kolkata, premium flats, and duplex flats in Kolkata
Ready to move flats in Kolkata boost sales
The business of real estate developers in Kolkata is flourishing, especially with residential properties offering plenty of premium projects of affordable housing. Buyers can choose from a plethora of ready to move flats in Kolkata.
Real estate developers in Kolkata with unsold inventory are struggling with a loss on sale margins, such projects especially lead to low prices and less GST, thus making the present the best time for investment in real estate Kolkata. The demand for ready to move flats in Kolkata’s new town is especially greater.
Support offered by the Government is augmenting real estate investments
The Reserve Bank of India is offering home loan interests at record low prices. RBI has also minimized the repo rate, thus contributing to benevolent interest rates. Besides, the government has announced several fiscal packages, with other benchmark rates to fuel the sales in the real estate sector.
On October 9, 2020, the RBI announced an unchanged repo rate at four percent and reverse repo rate at 3.5 percent, the unanimous decision has been taken as long as the market stabilizes. As per the latest developments made by the RBI, the risk weights on home loans have been rationalized and have been linked only to Loan-to-Value (LTV) ratios. This has been an encouraging motive for investment in real estate in Kolkata and adding promising scope for real estate developers in Kolkata.
Furthermore, the Central Government along with the State Government of West Bengal is working on developing subsided plans like PMAY Scheme, and Nijashree Scheme, thus adding value to affordable housing for all. Such schemes are reducing the prices of flats in Kolkata, and opening doors for affordable home schemes for low budget flats in Kolkata, and 1 bhk flats in Kolkata for sale.
Besides, major banks are also reducing the rate of interest for different kinds of home loans, augmenting the launches of real estate projects Kolkata.
The pandemic uncertainty and investment in real estate Kolkata
With the uncertainty of how long the pandemic will prevail and what lies ahead, offers for properties in Kolkata have escalated to a new high, a trend that was previously valid only as festive offers. If not in the form of clear cut lucrative discounts, buyers can avail easy payment deals, complimentary car parking options, among others. It is therefore the best time for buying flats in Kolkata as the industry is looking at some of the lowest prices, along with various options with location and budget bandwidths. Furthermore, there is also the possibility to buy ready to move in flats in Kolkata at prices so low which were previously witnessed only with under-construction projects.
The consequences of the COVID-19 in the business sector have been unprecedented. It is no surprise that the pandemic has also severely impacted investment in real estate. Property sales came to a complete standstill during the March lockdown, and the anxiety among real estate developers has peaked as construction activities still haven’t completely resumed in some states.
On the brighter side, the pandemic gave rise to a few noteworthy trends in the real estate sector which cannot be ignored. High-value markets such as Mumbai, Bengaluru, and Hyderabad showed a different graph in comparison to the otherwise secondary market of Real Estate Kolkata. As mentioned by West Bengal’s finance minister— Amit Mitra, the state was at the top with GDP rankings, marking a 12.58% growth during the financial year of 2018-19. A consistently growing market with a steady flow of major investments, increasing job opportunities, infrastructural developments, and upcoming residential properties in Kolkata, makes Kolkata’s real estate sector a coveted investment option in the future.
The new normal surges investment in real estate
In general, it is one of the best times for investment in real estate. With people forced to work from home, demand for home office spaces has witnessed a new high. Buyers are keen to invest in a home of their own, a trend that is especially common among millennials, living in a shared apartment. Furthermore, many rent payers had to vacate the apartments, giving in to the pressures of the landlords. As a result, the demand for property sales also witnessed a rise during the period of COVID-19, owing to the growing uncertainties in the financial sector, the stock market volatility, among others.
The concept of work from home has picked up in the COVID-19 phase and people are definitely seeing the benefits of owning a house, rather than rented accommodation. The new normal of owning an office space at home has increased the demand for buying own properties among middle-income and upper-middle-income groups.
Furthermore, people are staying at home more than usual and for a longer period, therefore appreciating and realizing the value of buying flats in Kolkata, while also adding to the business in general and for real estate developers in Kolkata.
Besides, in the post-COVID-19 times, erosion in the valuation of the stock market is likely. This will further result in lower rates of fixed deposits. With home loans getting cheaper, and the currency value of the rupee declining against stronger international currencies, it is also a good time for NRIs to engage in lucrative property buying. The NRI contribution will foster the buying trend in the real estate sector. Most of the overseas buyers are usually interested in investing in residential properties in Kolkata for either moving-in with families, as a re-investment opportunity, or for renting out to locals for good returns.
When it comes to buying flats in Kolkata NRIs have a contrasting variety to select from— luxurious flats in Kolkata on one hand, and low budget flats in Kolkata on the other, while also having a plethora of options in affluent villas and bungalows in Ballygunge. Other favorable factors such as growing job opportunities, good transport connectivity, and low land prices are bound to attract NRIs for investment in real estate in the City of Joy.
Real estate is one of the largest employment building sectors in the country. With innovative measures and support from the State Government, real estate Kolkata and real estate developers in Kolkata are bound to witness a new high. If the real estate sector further also implements relaxation in policy rates, while also curbing interest rates effectively at ground level, the overall cost of buying a property will reduce, thus stimulating the percentage of homebuyers, with positive returns in investment in the real estate market in the future.
Kolkata is not considered to be expensive. The city enjoys a low cost of living as compared to other metropolitan hubs, and is one of the most affordable cities in the country. For instance, renting a 1 BHK in Kolkata near the city, would cost you an average of Rs 12000 a month. On the other hand a 1 BHK in Mumbai would cost approximately 40,000 and in Bangalore around Rs 17000.
The same applies for other aspects such as travel, or recreation. Kolkata isn’t as expensive as the other metropolitans and is perfect if you are looking for affordable living.
Buying a flat in Kolkata is an excellent investment. Real estate is one of the most profitable investments in India, with real estate prices going up by an average of 2-5% year on year. Kolkata is one of the primary real estate markets for several reasons. One reason is that many centrally located neighbourhoods in Kolkata are up for redevelopment. This means that areas like EM Bypass, Ballygunge, Beliaghata etc. have many new properties with numerous amenities available for sale. Secondly, the suburbs of Kolkata have gone through massive development and growth. Many areas such as Rajarhat, Salt Lake and New Town are fully developed and have in-demand properties on offer. The third reason is that compared to many cities like Mumbai, Kolkata’s real estate market is relatively affordable, especially for the quality of construction.
The real estate market in Kolkata is robust and buying a flat here is an excellent investment opportunity. Real estate is one of the most profitable investments in India, with prices going up by an average of 2-5% year on year. Kolkata is one of the primary real estate markets for several reasons. One reason is that many centrally located neighbourhoods in Kolkata are up for redevelopment. This means that areas like EM Bypass, Ballygunge, Beliaghata etc. have many new properties with numerous amenities available for sale. Secondly, the suburbs of Kolkata have gone through massive development and growth. Many areas such as Rajarhat, Salt Lake and New Town are fully developed and have in-demand properties on offer. The third reason is that compared to many cities like Mumbai, Kolkata’s real estate market is relatively affordable, especially for the quality of construction.