The City of Joy has always kept to its name by remaining the most affordable among the Indian metro cities. Apart from its abundance in water supply and well-connected transportation system at incredibly reasonable rates, the Real Estate market appears to be the most affordable.
As revealed by the report from a reputed Real Estate Consultancy in the country, Kolkata records the lowest average prices of the properties even leaving behind Chennai and Hyderabad. The per square foot average price at present is about 4,405 rupees.
Affordable houses below the price of 40 lakhs are the most preferred in the city, which shows the immense potential of its realty market where the sale is largely influenced by the price.
The city has 5 broad zones namely, South, West, North, Central and East. The report covers the Metropolitan area of Kolkata, including Uttarpara, Sodepur, Narendrapur, Barrackpore. The area surveyed stretches from Barasat to Sonarpur apart from the city’s prime locations. The reason found for the property rates being low is the relatively lower cost of land in these regions.
According to the Merlin Group Chairman and CREDAI National Vice-President, Kolkata beats the tier II cities like Pune, Hyderabad, Bangalore regarding the low price of flats despite the increase in construction costs.
Till date, Mumbai tops the list of high property prices with an average of 10,500 rupees per square foot. Pune follows it with a figure standing at 5,465 rupees per square foot. Then comes Chennai with an average property price of 4,935 per square foot closely followed by Hyderabad and NCR.
City Average Property Price in Rupees (per square foot)
The report suggests that the Real Estate market of Kolkata is not only price-sensitive but possesses unique characteristics such as it is ruled by size. The data of the report indicates that the city is able to instantly control the situation as soon as it realizes the gap between supply and demand.
This is evident from the estimated number of unsold units being lesser than that of the country’s leading realty markets driven by IT sectors.
Have a look at how surprising the numbers are:
City No. Of Unsold Units
Kolkata > 50,000
Though the number of unsold units in Kolkata is low, the city’s realty market will require 3 years and more to liquidate since the sales are low at present. The new IT Policy is expected to improve this situation in future with beneficial changes.
As shown by the data, Kolkata has been maintaining a balance between the supply of projects and absorption of unsold units so far. The number of units launched in the city from 2013 to Q3 2018, is roughly 1,25,000. The difference between absorption and supply reached its peak in 2014 that initiated the controlling of supplies. Around 86,000 unsold units got cleared between 2014 and 2018 with the numbers being the highest in 2016. This offers a positive notion about the market, doesn’t it?
To stay updated with more such interesting information as well as affordable residential projects in Kolkata, contact Transventor Property Management. We render the most accurate solution for any difficulty you face while buying, selling or renting a property.