The mid-range segment in the Kolkata real estate sector is witnessing a flurry of activity. The residential realty sector is also witnessing the entry of several new players into the market. The capital values for residential real estate in Kolkata have increased approximately between 2-3% in comparison to the third quarter of 2017. There are several premium and luxury realty projects that were launched last year in the city’s southern areas. These projects are usually priced anywhere between Rs. 8-12, 000 per sq. ft. as per reports.
Demonetization initially impacted the real estate market in Kolkata. However, since this market is majorly driven by end-users, this impact was not as much as feared. Buyers waited for a little stabilization before returning to the market. There is an increase in residential supply in Kolkata, particularly in the mid-range segment. The mid-range segment has properties priced between Rs. 40-80 lakhs on an average. The affordable housing segment has properties priced lower than Rs. 40 lakhs while the high-end category has properties priced above Rs. 80 lakhs. There are new developers who are foraying into the Kolkata realty market and several high-net worth individuals are now investing more in real estate. Several end-users are also more open towards switching to high-end apartments from standalone homes or bungalows in Kolkata.
End-users continue driving the market majorly although there is a major number of investors active in the secondary sales market. The Peripheral Business District which includes New Town, Salt Lake and Sector V is the most coveted business and commercial zone at present. There is high availability of land here which is a major draw as well. The CBD zones like Camac Street and Park Street are also preferred commercial locations. Rental values have been largely stable in Kolkata’s commercial real estate sector over the last couple of years.