Kolkata, the capital of West Bengal, was formerly the capital of British India from 1772 – 1911. The city’s growth as an important commercial and industrial hub during the pre-independence period is rooted in its strategic location as a major port on India’s eastern coast. Kolkata is home to a diverse economic base, including heavy industries, food processing, textiles, etc. The city witnessed a decline in industrial activity between the 1950s and 1990s mainly due to geo-political tensions.
Planned satellite cities such as New Town and Salt Lake in the Kolkata Metropolitan Area (KMA), are emerging as prominent IT hubs.The international airport at Kolkata has connected it to global centres, attracting multinational and national tech giants such as Cognizant, Tata Consultancy Services (TCS) and Wipro, to the city. In addition to the current BRTS corridor, the metro rail has been proposed to improve the connectivity within the city.
With the increasing number of economic opportunities and burgeoning population, housing demand has largely been steady over the past few years. Supply had however, dwindled in recent years as West Bengal is the only state to launch its own version of the Real Estate Regulation Act (RERA), i.e., the Housing Industry Regulation Act (HIRA) (2017). The resultant confusion and latency in implementation of the Act are among the factors that had affected new supply in Kolkata. However, with the implementation of RERA since 2021, the residential activity has received a new quick start in the city.
The latest property market trends in the city suggest the following:
- The aftereffects of the policy issues where the former West Bengal Housing Industry Regulatory Authority (HIRA), a parallel to RERA (2016), was declared unconstitutional in 2021, coupled with the effects of the pandemic, have overshadowed Kolkata’s residential market recovery. While the RERA has now been adopted, the policy snags and delays in the registration process have had a significant bearing on the homebuyer sentiments in Kolkata.
- New supply grew by 52 per cent YoY in 2022, and 8,196 units were launched. Kolkata took a mere 2 per cent share in the overall new launches among the top eight cities.
- Maximum (30 per cent) of new units launched during 2022 belonged to the INR 45-75 lakh price range. Developers were focused on the 2BHK and 3BHK configurations, capturing 43 and 41 per cent, respectively, in the new supply.
- New Town, Rajarhat, and Baranagar witnessed maximum new launches, taking a 41 per cent share in the overall new supply in the city in 2022.
- Residential sales recorded a growth of 8 per cent YoY with 10,746 units being sold in 2022, while extending the existing 2% rebate on the stamp duty on the property till December 31, 2022, has boosted consumer sentiments.
- The micro markets of Rajarhat, New Town, Madhyamgram, Joka and Tollygunge recorded maximum traction and together accounted for 39 per cent of the sales in the city.
- Units within the price range of INR 25-45 lakh recorded maximum (37 per cent) demand. Buyers preferred the 2 BHK and 3 BHK configurations, which took a 43 per cent share each in the overall demand pie.
- Kolkata has the lowest unsold inventory of 23,166 units amongst the top eight cities and an inventory overhang of 26 months (2.2 years).
Renuka Kulkarni, a seasoned real estate professional, brings over five years of diverse experience in research, consulting, and architectural design within the urban sector. Her expertise spans public and private projects, showcasing proficiency in real estate research, trend interpretation, and policy analysis. With qualifications in architecture and a master’s degree in Data Science (Business Intelligence & Data Analytics) from IIIT Bengaluru, along with an M. Tech in Urban Development and Management from TERI School of Advanced Studies, New Delhi, Renuka seamlessly blends data analytics with market insights, offering a holistic understanding of the industry in her research pieces.
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