A number of upscale multi-storied projects were launched in 2017 in the southern part of the city
One of the interesting new trends in Kolkata’s residential real estate market has been the entry of new players. The capital values of residential realty have seen a price increase in Q4-2017 ranging from 2 per cent to 3 per cent as compared to Q3-2017. A number of upscale multi-storied projects were launched in 2017 in the southern part of the city – for example Tata 88 east, Mani Vista, Signum Victoria Vistas, Aspirations Elegance and Onex Privy. The capital values of these projects were in the range of Rs 8,000-12,000 per sq ft.
Effect of demonetisation
As everywhere else in the country, demonetisation had some effect on Kolkata’s residential sector. However, since Kolkata’s residential sector is largely end-user driven, the effect of demonetisation was not very severe, as the buyers are willing to wait for the market to stabilise. In the office asset class, there has been no major impact due to demonetisation. However, leasing demand has certainly reduced post-demonetisation.
Top-selling residential projects
Kolkata’s residential property market is seeing a splurge in supply – which, however, is not really met by consummate demand overall. The middle-segment housing category is seeing the maximum movement in Kolkata’s residential sector. Some of the prominent projects across the three segments are:
High-end (> Rs 80 lakh) – The 42, Avni Grand, Unimark Eternia, Loudon Star, Orbit Victoria, Urbana, Atmosphere, Swarnamani
Mid-segment (Rs 40 lakh – Rs 80 lakh) – Diamond City North, Regent Garden, New Shrachi Garden, Srijan Midlands, Avani Oxford
Affordable (< Rs 40 lakh) – Unimark Sports City, Sukhobrishti, Aponalay, Dream Park, Ideal Abasan
New residential developers entering the Kolkata market and a considerably high saturation of HNIs certainly suggest housing demand growth in the future. Also, more and more end-users willing to shift from bungalows/standalone houses to multistoried apartments. This augurs well for an increase in demand in the future.
Kolkata’s residential real estate market continues to be largely end-user driven and does not experience too much investor activity. That said, residential investors here are always on the lookout for suitable opportunities. A significant number of residential buyers – largely those focused on the secondary sales market - continue to adopt a wait-and-watch approach in the current situation.
Commercial Office Scenario
In the commercial segment, the Peripheral Business District including Salt Lake Sector V and New Town is the most preferred location as it constitutes the IT hub of the city. Moreover, availability of vacant spaces also acts as a pull factor. The CBD areas, including Park Street and Camac Street, are the next-preferred location for office occupiers, given their locational advantage and high-end tenant profile. Commercial office real estate sector in Kolkata has been witnessing stable rental values over the last couple of years.
(The writer is vice chairman – ANAROCK Property Consultants)