February 16 2015
- Howrah recorded maximum growth in this quarter
- Rental values in Kolkata ped by seven per centbetween 2013 and 2014
- Impasse over proposed expansion of the Kolkata metro network and construction of the Eastern Metropolitan Bypass connecting several localities with IT hubswere the prime influencersof the property market
Kolkata, 16 February, 2015: 99acres.com Insite is a quarterly report focusing on capital and rental price trends in residential real estate market across seven major cities of India. According to the report, property prices per sq ft in Kolkata have witnessed a marginal of two per cent in Oct-Dec 2014 as compared to the previous quarter. However, an annual comparison reveals that property here has appreciated by two per cent. Average rental value in the city has declined by seven per cent since 2013. The most preferred unit type in Kolkata is 3BHK. The supply of residential properties in Kolkata has recorded an appreciation of 48 per cent during the same span.
Commenting on the report, Mr NarasimhaJayakumar, Chief Business Officer, 99acres.com,said, &ldquoWhile the Bonhooghly project provided some respite to Kolkata&rsquos real estate landscape, overall prices depreciated on account of stagnant infrastructure development and lack of basic civic amenities. The resumption of North-South and East-West metro development and more industry-friendly government policies with regard to IT-SEZ can help improve the market.&rdquo
Price Analysis of Kolkata (Oct-Dec 2014 vs. Jul-Sep 2014)
- Howrah had recorded a massive uptrend of 23 per centlast year. The locality took its growth trajectory to a new height when it clocked 43 per centin the quarter ending December as compared to the previous one. Newfound government attention led to increase in the number of project launches last quarter in Howrah, whichwas one of the reasons for the price in property prices.
- BT Road saw substantial growth of 20 per cent, both, last year and between Jul-Sep 2014 and Oct-Dec 2014 owing to revival of the ambitious Bonhooghly project.
- Some localities like Belgharia, Joka, and Tollygunge in South Kolkata recorded a hike of 17 per cent, 19 per cent and 18 per cent,respectively in the quarter ending December.
- On the other hand, prices in localities such as Kamalgazi, Narendrapur, and Rajarhatdeclined by 24 per cent, 20 per cent and 6 per cent, respectively.
- Rental values in Kolkata ped by seven per centannually. Values in East Kolkata plummeted by nine per cent and the south saw a downtrend by six per cent during the same span.
- Prince Anwar Shah Road and Ballygunjeach witnessed a rise of two per centin rental values, the credit for which is attributed to the localities&rsquo excellent public transport and social infrastructure and the presence of commercial offices.
- The rental market of Tollygunge remained stagnant while that of Jadavpur, Uniworld City, New Town and the entire stretch of E M Bypass saw an average dip of 14 per cent in Oct-Dec 2014. The downtrend is mostly the result of weak infrastructure and lack of government initiatives to propel industries.
- Availability of Different Types of Property  - Apartment buyers of Kolkata are spoilt for choice with this property type making up nine-tenth (91 per cent) of the total market in the quarter ending December. Builder floors saw the second highest supply with a mere five per cent share of the total inventory, while availability of independent houses/villas was the least during the same span.
- Availability of Property in Different Budgets  -  The city had an abundance of properties in the middle income segment ranging between Rs 25-40 lakh. The category bagged more than a quarter of the real estate landscape despite dipping marginally by a per cent from the Jul-Sep 2014 quarter.
Kolkata&rsquos elite can boast of exclusivity as properties worth Rs 1 crore and above make up only a tenth of the total on a decline. However, the luxury housing segment (Rs 60 lakh &ndash Rs 1 crore) witnessed a decent supply of 18 per cent in the current quarter.
- Ready to Move vs. Under-construction  - The city had witnessed a spurt of new projects in the wake of the metro network expansion and improvement of road infrastructure. However, since all developmental work has either been halted or is moving at a snail&rsquos pace, most real estate projects continue to carry the status of being under construction. Therefore, close to half of the total inventory available for sale in the city was under-construction, with the rest being ready to move in.
- BHK-wise Distribution of Property  - On comparing room configurations available in the Oct-Dec 2014 quarter with the Jul-Sep quarter, supply of ready to move in houses has declined by a considerable margin in the 1BHK and 4BHK categories. While the 1BHK units recorded a decline of 14per cent in supply of ready to move in properties, 4BHK units witnessed a dip of nine per cent.
The mid-sized homes configured as 2BHK units saw the maximum supply in September ending quarter, while 3BHK houses took the lead in fourth quarter of 2014 by capturing 45 per cent of the market.
Launched by Info Edge, in September 2005, 99acres.com is a gateway to the one of the fastest growing property markets of the world, an information 'exchange' for buying, renting and selling of all types of residential and commercial properties anywhere in India. The website enables easy access to a huge property bank and allows direct connect with brokers/builders in cities as well as remote parts of the country. With over 6 million visitors visiting the website every month looking for real estate solutions, 99acres.com regularly enjoys the highest traffic share, time spent on site and maximum page views, making it the most popular real estate portal in the country. Backed by a strong team and a network across 17 cities in India, 99acres.com has garnered faith and support of the real estate community in India within a very short time span.
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