The emergence of IT companies, improving transport connectivity and infrastructural upgrades such as metro projects, new taxation regimes and dilapidated homes to get a new lease of life are benefiting Kolkata’s real estate for long now.
The realty world is likely to experience a surge in sales volume, especially in mid-income housing segment in 2017. However, due to dependency on unaccounted cash transaction after demonetization, the premier segment is under pressure and this is giving rise to inventory backlog and would remain a worry for the developers’ lingo in Kolkata. The top and primary gainers in the capital market would be the localities in close proximity to IT companies such as Ballygunge, EM Bypass, Garighat and Alipore. Amid signs of stagnant price levels in India’s real estate market, Kolkata has received a one percent growth in average capital values in the residential market in the first quarter of 2016.
Metro plays the role of an enabler
The fast trailing of metro rail network will help in aligning the connectivity across the city and benefit the key micro markets such as Joka, Dum Dum, Noapara and New Garia.
New tax regime applicable in Kolkata from April 2017
The passage of the Kolkata Municipal Corporation (Amendment) Act, 2016 has surfaced way for the new tax regime in the city. The new Unit Area Assessment (UAA) method will be applicable from April 2017.
Dilapidated homes get a new lease of life
Kolkata civic authorities have initiated the responsibility of repairing the dilapidated buildings in the city. With the owner’s is agreement, the concerned bodies have planned to offer an incentive of 100 percent floor aspect ratio.
For years, builders in Kolkata concentrating on affordable real estate with patchy development in city. However, the scenario has changed after the demand for budget housing has shot up with massive supply constraints. With the wide range of availability of properties in Kolkata more developers are coming up with bigger quality projects, let’s have a look at how Kolkata becomes a realty hub.
With the advent of new technologies and skills, new-age apartments are in trend in Kolkata. The potential buyers are looking for the apartments which are decked up with top-notch and modish amenities, such properties have aroused the interest of young buyers.
Heavy traffic and Jam packed roads are now the old stories for Kolkata, the municipal corporation is working on several projects to improve the infrastructure of the city. Metro rail project is one of the dream projects which will connect the major junctions in Kolkata such as IT City at Salt Lake, Noapara, Joka and making it convenient for people to travel from one destination to another.
The real estate economic growth survives only on the comfortability of various segments of people and to cater this. The Kolkata real estate world has a combination of projects that falls under an affordable group that ranges between 35-60 Lac, whereas the upmarket 3 BHK apartment in Kolkata costs between 1.5 and 2 crore.
Kolkata suburban locations are witnessing a rise in property rates, according to surveys these areas are witnessing a rise of 25-30 percent in property prices over the previous one year. Areas such as Konnagar, Sonarpur, Rajpur, Baruipur are in a commanding position and the land prices are quite on higher side. Supported by the announcement for the extension of the EM Bypass (connecting North and South Kolkata), Narendrapur is also experiencing the price appreciations.
The economic downturn and attentiveness by the developers have led to an average price of premium housing coming down in the first six months of 2016. This trend is in-lined with the overall property rates in Kolkata that has perceived a sluggishness in this period. Along with that, the ongoing infrastructural developments have added value to the property market in Kolkata, hence, the demand for affordable housing has increased and it is yet in commendable situation.
February 2, 2017