Press Release

Property Prices in Kolkata appreciated by 3% in Jan - Mar 2015 over Oct - Dec 2014: 99acresInsite Report

June 1 2015

Major Highlights:

  • Kolkata is the only city whose capital market performed better than the rental market.
  • Despite the numerous hurdles in infrastructural development and mismatch in demand and supply,the city real estate story improved on the promise of better connectivity via metro.
  • Demand for housing in proximity to the Eastern Metropolitan (EM) Bypass slackened. Construction of the Parama flyover is expected to incentivise sales.
  • Revival of the Bonhooghly project and development of road infrastructurealso boosted the sector.

Kolkata, 01June, Insite is a quarterly report focusing on capital and rental price trends in the residential real estate market across seven major cities of India. According to the report, property prices per sqft in Kolkata have surged by 3% in Jan-Mar 2015 as compared to the preceding quarter, when capital values had depreciated by 2%. The average rental valuein the citygrew by 2% in the current quarter as compared to 2014. Residential apartments configured as 2BHK and 3BHK units recorded maximum supply in Kolkata.

Commenting on the report, Mr Narasimha Jayakumar, Chief Business Officer,,said, &ldquoThe otherwise grim market of Kolkata thrived on the developing metro and the revival of the Bonhooghly project. The established IT hub of East Kolkata and the grant of additional 10% Floor Area Ratio (FAR) for residential projects following green norms kept the spirits high.&rdquo

Price Trend Analysis of Kolkata (Jan-Mar 2015 vs. Oct-Dec 2014):

  • Bara Nagar in North Kolkata was the highest grosserin the Jan-Mar 2015 quarter. Construction of the Noapara-Barrackpore metro rail and the locality&rsquos proximity to the Bonhooghly project worked as major catalysts.
  • Growth in property prices in Kolkata&rsquos financial hub, Rajarhat, can be attributed to the presence of IT companies and the announcement of an additional FAR by the government.
  • Sodepur&rsquos popularity as a residential hub can be credited to the numerous shopping complexes and excellent connectivity to the rest of the city via the local suburban train. The locality will also be a part of the Baranagar-Barrackpore metro corridor.
  • Property prices in Baguihati rode the wave of the recent completion of a four-lane flyover, linking Kestopur with Raghunathpur and reducing traffic logjams.

Rental Analysis (Jan-Mar 2015 vs. Jan-Mar 2014):

  • Kolkata&rsquos rental market rose by 2% between Jan-Mar 2014 and 2015.
  • Prince Anwar Shah Road in South Kolkata witnessed the highest rise in rental values to the tune of 8% due to increased momentum of commercial activities.
  • This was closely followed by Salt Lake, which sees plenty of rental demand from the workforce of IT firms situated in the locality.
  • The state government&rsquos modification of the Kolkata Municipal Corporation Act, 1980,improved market sentiments since the new amendment halved the tax component on residential rent.
  • North Kolkata witnessed the highest appreciation of rental rates, by 4%, while values in South and East Kolkata rose by 2%.

Supply Analysis (Jan-Mar 2015 vs. Oct-Dec 2014):

  • Residential apartments captured 85% of the market in Jan-Mar 2015. This was a dip of 6%from the Oct-Dec 2014 quarter.
  • Properties within the range of Rs 25-40 lakh saw the highest supply, followed by houses priced below Rs 25 lakh.
  • Supply of 2BHK units inched up insignificantly by 1% in the current quarter, while availability of 3BHK units dipped by the same margin.
  • Number of new launches slowed down in the Jan-Mar 2015 quarter as compared to Oct-Dec 2014. The quarter saw more ready-to-move-in properties.
  • Majority of under-construction properties mushroomedin the mid-income bracket.

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