The Kolkata residential real estate market experienced a significant surge in 2023, showcasing robust growth in both supply and demand. The city’s residential real estate landscape has undergone a significant transformation in recent years, marked by substantial growth and changing dynamics. Fuelled by advancements in infrastructure and economic prosperity, Kolkata has seen a swift expansion of its urban footprint, with previously considered outskirts now becoming sought-after neighbourhoods. Moreover, increased income levels, improved connectivity, and a surge in commercial activities have all played a role in fostering a rising demand for housing that caters to the diverse needs and aspirations of the city’s inhabitants.
New Supply Surge
Throughout 2023, a total of 15,303 housing units were launched in Kolkata, reflecting an 87 percent YoY growth when compared with the figure in 2022.
Of the total, the last quarter of 2023 witnessed a remarkable increase in new supply with 5,267 units added to the city’s residential market, thereby depicting a staggering YoY growth of 90 percent and a substantial QoQ increase of 37 percent. This surge in new supply indicates a renewed confidence in the Kolkata real estate market, with developers actively responding to the increasing demand for residential properties.
Hotspots for New Development
The geographical distribution of new supply in 2023 revealed that localities such as New Town, Howrah, and Rajarhat were at the forefront of this growth. These areas emerged as key hotspots for developers, attracting substantial investments and witnessing the launch of a significant number of residential projects. The strategic positioning of these micro-markets, coupled with infrastructure development, contributed to their popularity among both developers and potential homebuyers. Presently, residential properties here quote prices in the range of INR 4,000/sqft to INR 5,500/sqft.
Residential Sales on the Rise
The residential market in Kolkata also witnessed a commendable growth in sales during 2023, recording a 16 percent YoY increase. A total of 12,515 units were sold, underscoring the positive sentiment among homebuyers.
The market's resilience and adaptability were evident as it navigated challenges and continued to attract buyers, indicating a sustained demand for residential properties.
Demand Dynamics
On the demand side, specific micro-markets emerged as preferred choices for homebuyers.
Locations such as New Town, Rajarhat, Baranagar, Dankuni, and Joka dominated sales during 2023, indicating their popularity and potential for future growth.
Currently, the residential prices in these locations hover around INR 3,500/sqft to INR 5,500/sqft, encompassing a wide range of pricing owing to the location characteristics. This diversity in prices and preferences reflect the evolving lifestyle choices and priorities of homebuyers in Kolkata.
Affordability Driving Demand
Affordability played a pivotal role in shaping the demand landscape, with units within the price range of INR 25-45 lakh accounting for the highest demand share at 38 percent.
This trend underscores the significance of providing housing options that cater to a wide spectrum of buyers, making homeownership more accessible and inclusive. Further, 2023 saw a clear preference for 2 BHK and 3 BHK apartments, capturing 43 percent and 42 percent shares respectively in the overall demand pie. This mirrors the evolving needs of homebuyers, emphasizing the importance of practical yet spacious and versatile living spaces.
Conclusion
The Kolkata residential market's stellar performance in 2023, marked by robust new supply growth, increased sales, and shifting demand dynamics, paints a promising picture for the city's real estate sector. The emergence of specific hotspots, coupled with the focus on affordability and preferred unit configurations, signifies a dynamic and resilient market that continues to evolve to meet the diverse needs of homebuyers. Going forward, stakeholders in the Kolkata real estate market are likely to witness further opportunities and challenges, shaping the future of residential development in the city.
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