Kolkata has today transitioned from its traditional housing patterns to embracing contemporary trends. Spurred by infrastructural development and economic growth, Kolkata has observed a fast-paced expansion of urban footprint, and localities that were once considered outskirts have now become sought-after neighbourhoods. Besides, rising income levels, improved connectivity, and a surge in commercial activities have further fuelled the demand for housing that cater to the diverse needs and aspirations of the city’s residents.
Rapid Growth in Residential Sales and New Supply
After a pandemic-induced lull in the market, the residential sales figures for the second quarter of 2023 (Q2 2023) have led to increased optimism in Kolkata’s real estate market. The period saw around nearly two thousand residential units sold, at par with the preceding quarter of Q1 2023.
The new supply recorded a robust 74 per cent YoY growth with 3,504 new units launched in Q2 2023.
A robust expansion in the new supply reflects heightened interest and confidence among developers amidst the rising investors and homebuyers interest in the city’s real estate offerings.
Where Are the Demand Hotspots in Kolkata?
The demand side of the equation paints an interesting picture of the localities that are capturing the attention of homebuyers.
In the recent quarter, the neighbourhoods of New Town, Rajarhat, and Joka have emerged as the frontrunners in residential sales.
These areas, known for their modern infrastructure, connectivity, and amenities, are drawing buyers due to their suitable blend of convenience and quality of life. Majority of the units sold in Q2 2023 were in the price bracket of INR 45 lakh and below, emphasizing the fact that affordability has always been a key factor influencing housing choices in Kolkata, and the trend has continued.
Infrastructure and modern living drive demand in New Town and Rajarhat
New Town and Rajarhat have emerged as preferred residential locations in Kolkata due to their strategic mix of modern amenities, infrastructure, and lifestyle offerings. Planned, well-structured roads and organized layouts in the region ensure smooth connectivity and efficient transportation, thereby enhancing the overall living experience. More importantly, these localities are in close proximity to reputed IT parks and a host of other office projects in the region, creating employment opportunities closer to home. They also stand out as thriving residential areas, owing to their robust social infrastructure. The presence of educational institutions and modern shopping malls significantly contribute to their allure.
Further, several large developers have launched modern housing complexes in New Town and Rajarhat, that offer a variety of residential options catering to diverse budgets and preferences. Presently, the residential prices in New Town and Rajarhat hover around in the range of INR 4,600-4,800 /sqft and INR 4,000-4,200 /sqft.
Affordable housing and future growth prospects fuel residential sales in Joka
Situated on the city's southern periphery, Joka’s proximity to educational institutions like IIM Calcutta and renowned hospitals as well as the presence of metro rail connectivity offer an attractive proposition to home buyers, prompting the demand for residential properties in the area. Its affordable housing appeals to those desiring quality living on a budget, the prices ranging between INR 3,600-3,800/sqft. Joka's upcoming infrastructure, notably the metro extension, underlines its growth potential.
Thus, Kolkata's residential market stands at an exciting crossroad, poised for further development. Going forward, the neighbourhoods discussed above have immense potential for growth and appreciation in property value due to ongoing infrastructural projects and urban expansion plans.
