Insights on Kolkata Residential Real Estate Market
Kolkata, traditionally an end-user driven market has exhibited vibrant growth in the residential real estate market in the past few years. The core city grows exponentially over time both towards north and south directions with corresponding development of social and civic infrastructure because of population explosion and fast urbanization. It has been the driving force for sustainable demand for affordable residential properties in and around Kolkata. The realistic value proposition for the residential units, strong market foundation, and relatively stable political scenario have given a competitive edge for Kolkata over the other metro cities in India. The introduction of HIRA (Housing Industry Regulatory Authority) from 1st June 2018 has further strengthened the market nerves in terms of transparency, accountability, and trust. It has been recorded that the majority of the ongoing residential projects and just completed projects from reputed builders in city and suburb locations have been showing steady absorption over the last few quarters. Kolkata has witnessed many new launches especially around the city suburb areas like Birati, Madhyamgram, Barasat, Belghoria, Sodepur, Barrackpore, etc. in the north and Garia, Boral, Narendrapur, Baruipur, Behala, Thakurpukur Joka etc. in the south side of the main city to meet the continuous demand from the buyers. The BT road and Jessore road are the major northern suburb thoroughfares which have seen rapid construction activities due to gradually improving transport and civic facility and the availability of suburban railway network running parallel to these roads. In the southern suburbs, the fast development and metro connectivity alongside the long stretches of Diamond Harbour Road (Joka, Thakurpur, Amtala) and NSC Bose Road (Tollygunj-Garia-Baruipur) have been instrumental for its transformation as a preferred zone of affordable residential settlement. The PMAY (Pradhan Mantri Awas Yojna) scheme of affordable housing has also stimulated the overall market demand.
The transaction of properties in Rajarhat-New Town area is also taking right pace as the entire locality gradually upgrade its basic infrastructure, offerings of social amenities during last few quarters. Moreover, smooth connectivity and the proposed expansion of metro railway network to link the core city and other suburban areas give added feature for the ongoing and upcoming properties to attract the potential buyers. Additionally, this satellite township continued to draw the attention of the IT professionals due to its proximity to Salt Lake Sector V, the well-developed IT hub of Kolkata.
The EM Bypass and adjoining neighborhood have rapidly changed the skyline of the eastern fringe areas of the city during last decade and still continue to attract the hi-end buyers with the superior residential projects amidst of greenery and excellent all-around transport connectivity. The upcoming Garia-Airport Metro connectivity has also increased the demand for properties. The premium residential projects around the well-established posh localities in Kolkata like Alipore, Ballygunje and some selected south-central city locations generate limited supply targeted for a niche segment of citizens in Kolkata with a steady appreciation of property value backed by sufficient demand.
Insights by – Yash Vardhan Kejriwal
Executive Director – PIONEER PROPERTY MANAGEMENT LTD.