Kolkata Insite Report Jul-Sep 2015

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Kolkata Insite Report-Jul-Sep 2015

City Highlights

Average property values in Kolkata remained soft due to the cautious stance of buyers coupled with snowballing unsold inventory in the residential market. However, a slew of infrastructural developments in and around VIP Road and Jessore Road are expected to be the harbinger of good news in the forthcoming quarters. 

  • Kolkata Insite Report-Jul-Sep 2015 significant price movementsOne of the major initiatives that materialised during Jul-Sep 2015 was the launch of online sanctions of building plans. This reduced the time taken by developers to get project approvals to 45 days. Currently, the online system has been launched in localities under Kolkata Municipal Corporation borough VII. 
  • The commercial office market in Kolkata continued to improve in Jul-Sep 2015, impacting the residential market positively. This has provided impetus to the general buyer sentiment, which has in turn led to increased absorption in the residential sector. 
  • Several renowned developers in Kolkata signed deals with private equity (PE) firms bringing in liquidity in the market. Some of these developers went on to launch projects, especially in the south-west quadrant of the city. 
  • Due to increased land prices in northern localities such as Rajarhat and New Town, developers are shifting their focus towards new investment destinations towards the South. These include localities along the Diamond-Harbour Road and the EM Bypass Road. Areas such as Maheshtala, Thakurpukur, Nayabad, Naktala and Baruipur are also gaining prominence amongst home buyers. 
  • Among all zones, maximum absorptions has been witnessed in North Kolkata because of its proximity to Salt Lake and Sector V. The regions catered predominately to the mid-income housing segment.

Kolkata Insite Report-Jul-Sep 2015 key influencers

 

 Capital Analysis 

  • Kolkata Insite Report-Jul-Sep 2015 top performers capitalAbout 50 per cent of the localities in Kolkata witnessed a rise in property prices during Jul-Sep 2015, with New Alipore recording the highest capital increase of 12 per cent in Jul-Sep 2015 over the previous quarter. 
  • Localities with high availability of ready-to-move properties have witnessed rise in property prices in the first six months of 2015. 
  • About 50 per cent of the localities in North Kolkata recorded a positive trend in Jul-Sep 2015, especially those close to VIP Road which witnessed a healthy appreciation of 8-10 per cent. North Kolkata has been the most active zone in the last three months with majority of the new project launches in the city taking place here. Furthermore, there is high availability of ready-to-occupy properties in the zone. 
  • Proximity to commercial hubs such as Salt Lake and Rajarhat, presence of International Airport and metro have been major reasons behind the improved activity of both buyers and developers in North Kolkata. 
  • Capital values in developing localities such as Narendrapur, Thakurpukur and Nayabad either remained stable or witnessed a dip. Due to paucity of buyers, developers refrained from hiking property prices. 
  • Launch of some high-end projects pushed up the average capital values in Ballygunge and Southern Avenue by seven to eight per cent. 
  • Property prices in Rajarhat, one of the prominent localities of Kolkata, witnessed a seven per cent drop in the last three months. The locality has a high share of under-construction properties and with buyers unwilling to invest in them, an impasse has been created.

Rental Analysis 

  • Kolkata Insite Report-Jul-Sep 2015 top performers rentWith over 50 per cent of the localities registering stable values, Kolkata’s rental market inched up by one per cent in the last three quarters. 
  • Rental values in Behala witnessed the maximum rise of nine per cent. Despite the increase in ask rates, the locality remains one of the most affordable areas in the southern region. Rental values in Behala range from Rs 5,000 to 15,000 per month. 
  • An eight per cent rise in rental values was recorded in Dum Dum. Continuous demand from tenants has allowed the landlords to increase the prices here. 
  • Salt Lake was another locality that witnessed a rise in rental values during the first three quarters of 2015. Presence of commercial offices keeps the rental market strong in the area. 
  • Rental values dropped by four per cent along the Prince Anwar Shah Road and seven per cent in New Town and along VIP Road. 
  • Localities such as Ballygunge, Garia, Maheshtala, New Alipore, Rajarhat, Tollygunge and those along the EM Bypass witnessed no change in rental values since January 2015. 
  • The rental market is expected to improve in the coming months on the back of a growing commercial market. Areas close to IT hubs and industrial zones and those boasting of metro connectivity are set to gain the most. 
  • The 3BHK category was the most supplied configuration in areas such as EM Bypass, New Town, Prince Anwar Shah Road and Rajarhat, while 2BHK units were the most available in New Town, Rajarhat and Tollygunge.

Supply Analysis

Supply of properties priced between Rs 25-40 lakh increased in Jul-Sep 2015 while those priced below Rs 25 lakh dipped. The city recorded a significant drop in the supply of ready-to-move properties during the same period.

Availability of Different Property Types 

  • Kolkata Insite Report-Jul-Sep 2015 Supply_property typeConcentration of residential apartments was the highest in South Kolkata followed by East Kolkata and North Kolkata. Majority of the residential apartments in North and South Kolkata were available within the budget of Rs 25-40 lakh. In Central Kolkata, almost half the share of residential apartments was offered within the budget of Rs 1-5 crore. 
  • South Kolkata captured the maximum supply of independent houses and villas followed by North Kolkata. Most of the independent houses and villas in South Kolkata were available within the budget of Rs 60 lakh to Rs 1 crore. On the other hand, in the northern zone, the category was priced in the bracket of Rs 40-60 lakh. 
  • About 55 per cent of the total builder-floor units available in Kolkata were present in the southern quadrant followed by the northern region. 
  • Majority of the demand in Kolkata is currently for properties available in gated communities and societies due to better amenities and higher security quotient. Since there is low demand for villas, supply also dropped by three per cent in Jul-Sep 2015 from the previous quarter. 
  • Builder floor units are being preferred in developed localities such as Jadavpur, along the Anwar Shah Road and Dum Dum, while those available in the peripheral areas witness less demand. Demand for villas is high in South Kolkata and Rajarhat

 

Availability of Property by Budget 

  • Kolkata Insite Report-Jul-Sep 2015 Supply_budgetOut of the total properties available, nearly one-third were available in the mid-income housing segment while 21 per cent were available in the affordable bracket. In Jul-Sep 2015, the affordable housing and ultra-luxury housing segments witnessed a drop in supply while rest of the categories saw a surge. 
  • Majority of the new launches in the city were in the mid-income group as very few developers launched luxury and ultra-luxury projects. 
  • Buyers in Kolkata were mostly looking for properties falling in the mid-income and high-income ranges. Demand for properties in the luxury and ultra-luxury housing segments is negligible in the city. 
  • Rajarhat, VIP Road and EM Bypass Road have a healthy supply of properties in mid-income housing segment (Rs 25-40 lakh). Whereas, the luxury-housing segment (Rs 60 lakh - Rs 1 crore) is most prominently supplied in Ballygunge, Southern Avenue and Lake Gardens. 
  • North Kolkata had the highest supply of affordable houses followed by South Kolkata. Luxury and ultra-luxury properties were prominent in South and East zones of the city. 
  • In the affordable segment, most of the properties were under construction, while most ultra-luxury properties were ready to occupy.

 

 BHK-wise Distribution of Property 

  • Kolkata Insite Report-Jul-Sep 2015 Supply_BHKAmong all zones, supply of larger homes (3BHK and 4BHK) was mostly concentrated in South and East Kolkata while smaller homes (1BHK and 2BHK) were concentrated in South and North Kolkata. Demand in the city is high for 2BHK and 3BHK units while there are very few takers for 1BHK and 4BHK units. 
  • Supply of ready to move 2BHK and 3BHK units was high in South Kolkata. North Kolkata had the highest supply of under-construction 2BHK units, while South Kolkata had the highest supply of under-construction 3BHK units. 
  • While the supply of all other configurations remained unchanged, supply of ready-to-move 3BHK units dropped marginally in Jul-Sep 2015. 
  • In Central Kolkata, 2BHK units were mostly available in the budget of Rs 60 lakh to Rs 1 crore, while 3BHK and 4BHK units were available in the Rs 1-5 crore range. 
  • In South and North Kolkata, 4BHK units were available in the the Rs 1-5 crore bracket, whereas 3BHK units were present in Rs 40-60 lakh category. Highest supply of 2BHK units in southern zone was witnessed in Rs 25-40 lakh budget bracket.

 

 Ready to move in vs Under-construction    

  • Kolkata Insite Report-Jul-Sep 2015 Supply_Ready vs under constructionSupply of ready-to-move properties in Kolkata dropped by eight per cent. Among all zones, the maximum drop in ready-to-move properties was witnessed in West Kolkata. 
  • South Kolkata recorded the highest supply of both ready-to-move and under-construction properties, while Central Kolkata had the lowest availability. 
  • As observed in the previous quarter, supply of both ready-to-move and under-construction properties continued to be concentrated within the Rs 25-40 lakh budget category. Under-construction units were available in the peripheral areas and in south-east Kolkata. 
  • While residential apartments had an equal supply of ready-to-move and under-construction properties, both independent houses and villas, and builder floors were mostly ready for occupation. 
  • There was an almost equal distribution of 2BHK and 3BHK units in both ready-to-move and under-construction categories.
  • Ready-to-move properties formed a considerable bulk of the residential stock across zones, except in West Kolkata where under-construction properties were dominant. 
  • Ready-to-move residential apartments were concentrated in the South, followed by the East. Under-construction residential apartments were mostly available in the South, followed by the North.

ANNEXURES

CAPITAL VALUES

Locality

Jul-Sep 2015

% Change

CAPITAL VALUES

Locality

Jul-Sep 2015

% Change

 

Action Area III

5300

2

 

Park Circus

7250

11

Airport

3500

-7

Prince Anwar Shah Road

5200

0

BT Road

4400

-8

Raghunathpur

2700

2

Baguihati

3450

5

Rajarhat

4100

-7

Ballygunge

12200

10

Salt Lake

5850

2

Bansdroni

4050

1

Sealdah

7750

-1

Barasat

2750

2

Sodepur

3250

8

Baruipur

2750

-7

Southern Avenue

11750

7

Behala

4100

3

Tagore Park

4600

-7

Belgharia

3550

9

Thakurpukur

3700

-4

City Centre 2

4300

-3

Tollygunge

5000

2

Dum Dum

4000

1

VIP Road

5100

10

EM Bypass

6450

5

 

 

 

Garia

4200

-3

RENTAL VALUES

Locality

Jul-Sep 2015

% Change

Hooghly

2550

0

 

Ballygunge

26

0

Howrah

3650

4

Behala

12

9

Jadavpur

5500

-9

Dum Dum

13

8

Jessore Road

5400

1

EM Bypass

19

0

Jodhpur Park

8800

1

Garia

13

0

Kaikhali

3700

0

Maheshtala

10

0

Kestopur

3500

0

New Alipore

21

0

Lake Gardens

6600

-3

New Town

14

-7

Lake Town

5750

-3

Prince Anwar Shah Road

26

-4

Madurdaha

4600

2

Rajarhat

13

0

Maheshtala

3350

-1

Salt Lake

16

7

Narendrapur

3650

-9

Thakurpukur

12

9

New Alipore

6900

12

Tollygunge

18

0

New Garia

4650

-4

VIP Road

14

-7

New Town

5700

2

 

 

 

*All prices are per sq ft rates.

*Capital values represent quarterly change.

*Rental values represent half-yearly change.


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