The residential real estate sector in Kolkata, which has historically been driven by end-user demand, has experienced rapid growth in recent years. Because of the population growth and rapid urbanization, the central city expands rapidly over time in both the north and south, along with the growth of its social and civic infrastructure. The sustained demand for inexpensive residential homes in and around Kolkata has been fueled by this. In comparison to other Indian metropolises, Kolkata has a competitive advantage due to its real value proposition for residential units, solid market base, and comparatively stable political environment. The market nerves in terms of transparency, responsibility, and confidence have been further strengthened with the establishment of HIRA (Housing Industry Regulatory Authority) as of 1st June 2018.
According to a report by the Economic Times, Real Estate in Kolkata increased by 11% in the third quarter of the previous year. In addition, Kolkata has the largest real estate market in Eastern India. In terms of growth over the past ten years, it has outpaced other sizable housing prices like Gurgaon, Noida, and Mumbai. The poll also finds that Kolkata is home to the most astounding unsold inventories, largely because of COVID-19, despite the fact that the city’s market size is third behind Bangalore and Pune.
Property Prices In Kolkata Are Lower Than In Other Cities
After two years of poor financial performance, the absorption rate of real estate investments in Kolkata decreased, which resulted in a sharp rise in absorption prices in the current market. Due in part to the launches of important real estate developers, the quarterly supply grew.
Demand for affordable and mid-range housing has also surged dramatically as a result of the epidemic. Due to this tendency, real estate investment sales will undoubtedly rise. Developers of real estate are making investments in low-inflation regions like Kolkata as a result of the volatile equity markets. In light of this, investors might be wise to consider Kolkata during the pandemic.
Kolkata’s ready-to-move apartments boost sales
The Real Estate in Kolkata is flourishing, especially with residential structures offering a variety of opulent projects with affordable housing. In Kolkata, you can buy a number of apartments that are ready to move into.
The best time to buy real estate in Kolkata is right now since developers are looking to make money off of unsold inventory. These kinds of projects, in particular, result in decreased prices and GST. There is a particularly strong need for furnished apartments in Kolkata’s new town.
Government funding has increased real estate investments
The Central Bank of India is offering historically low interest rates on mortgage loans. The RBI has also lowered the repo rate to help provide favorable interest rates. Also, the government has launched a number of fiscal packages with different benchmark rates in an effort to increase real estate sector sales.
As long as the market stabilizes, the RBI unanimously resolved to keep the repo rate at 4% and the reverse repo rate at 3.5 percent starting on October 9, 2020. The risk weights on loans have been simplified, and they are only now connected to Loan-to-Value (LTV) ratios, per the RBI’s most recent announcements.
This has increased the number of intriguing options for Kolkata’s real estate developers and encouraged real estate investment in the area.
Moreover, the Central Government and the State Government of West Bengal are developing the PMAY Programme and Nijashree Scheme, which improve everyone’s access to affordable housing. Such initiatives are lowering apartment prices in Kolkata, opening the door for low-cost housing projects, and the sale of one-bedroom units.
In order to encourage the opening of new Real Estate in Kolkata, central banks are also reducing their interest rates on a variety of home loans.
Conclusion
Real Estate in Kolkata is one of the top industries for job growth. Thanks to innovative strategies and support from the State Government, real estate in Kolkata and the developers of real estate in Kolkata are certain to reach a new high. Let’s assume that the real estate sector keeps easing central bank while keeping local interest rates under control. If so, the total cost of buying a property will drop, encouraging a greater number of people to own homes and producing favourable future investment returns in the housing sector.
