Kolkata Real Estate Market - An Overview

Kolkata is the 4th most populous city in India. Kolkata, once the capital of British India, inherits many beautiful traits of British architecture and infrastructure. The “Cultural Capital of India” is now a major hub for Information Technology, Real estate, financial consultancies, travel and tourism and hotel industry. In spite of an overall slowdown in property market owing to high interest rate and inflation, the city has experienced a considerable rise in property prices over the past 7-8 months.

Real Estate sector in Kolkata has been dynamic over the past decade and has been climbing up on the growth scale. Kolkata has undergone a complete transformation in both commercial and residential real estate sector. The commercial real estate sector concentrated mainly on office, hospitality and retail sectors. Meanwhile the residential property in Kolkata North have appreciated considerably in the last few years.

Growth in real estate sector in Kolkata is also because of the following factors:

• Lower land acquisition cost compared to other metros.

• Government’s active involvement in development initiatives

• Lower asset prices

• Availability of scalable infrastructure

The above mentioned factors make Kolkata real estate a magnet of premium developers from all over India and abroad. Foreign real estate investors make Kolkata real estate as their first port of call.

Localities in Southern Kolkata like Ballygunj, Anwar Shah Road and Elgin Road have appreciated to unprecedented levels. Key factors behind such a steep rise in select localities are the limited availability of real estate options, successful retail and commercial projects and improved connectivity with improved urban road build quality. Top 5 localities in Kolkata on the basis of maximum real estate action are New Town, Garia, Rajarhat, E M Bypass and Awan Shah Road. The average per square feet (psf) rate for the city is around 5000/-