- Builders deferred their plans to launch new residential projects in Apr-Jun 2020.
- After Unlock 1.0, popular residential pockets of East and South Kolkata, such as New Town, Rajarhat, Joka, Behala, Tollygunge, showed modest signs of recovery.
- Developers chose digital mediums, such as 3D floor plans, virtual site visits and e-brochures to attract prospective buyers.
- Sales remained low with the expectation of price correction, whereas developers reeled under the impact of labour scarcity, delay in construction and rising price of raw materials.
- The extension by nine months under Force Majeure will allow builders to complete the ongoing projects and clear their unsold inventory, which stands at 30,000 units.
- Lower mortgage rates and governmental relief measures may aid in the revival of Kolkata’s market sentiment in the ensuing months.
* Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com
With the COVID-19-induced extended lockdown and the subsequent impact on new project launches,
construction activity and housing demand, the expectations of a revival in Kolkata’s realty sector loom large. Cash-strapped builders refrained from adding new inventory to the market in Apr-Jun 2020.
Many buyers have cautiously put their home purchase decisions on hold. The homebuyers are expecting a price correction in the ensuing months. Uncertainty in the jobs market has also contributed to a negative buying sentiment. The developer community, on the other hand, reels under the impact of construction delays, labour scarcity and rising price of raw materials.
With Unlock 1.0 coming into effect from June 2020, the popular residential pockets of East and South Kolkata have shown modest signs of recovery. Sales volume, however, is still low.
In the subsequent quarters, builders are likely to concentrate on completing the ongoing projects and clearing their unsold inventory, which stands at 30,000 units. Mid-to small players may undergo consolidation with established developers to sail through the crisis.
The revival of Kolkata’s realty is highly dependent on the renewed demand in the post-COVID world. Developers may plan to launch new residential projects and attractive offers before Durga Puja festivities to lure fence-sitters back into the real estate market.
Price movement in key micro-markets
|Localities||Apr-Jun 2020||QoQ % Change||YoY % Change||Rental Yield|
|Rajarhat||Rs 3,890 - 4,970||0%||2%||3%|
|Garia||Rs 3,700 - 4,390||0%||1%||4%|
|Behala||Rs 3,310 - 4,200||-3%||4%||5%|
|Baguihati||Rs 2,850 - 3,410||0%||4%||4%|
|Tollygunge||Rs 4,880 - 6,540||-1%||-4%||4%|
|Kestopur||Rs 2,970 - 3,400||2%||4%||4%|
|Jadavpur||Rs 4,460 - 5,520||-1%||-3%||4%|
|Bansdroni||Rs 2,930 - 3,750||-5%||-8%||5%|
|Joka||Rs 4,150 - 4,980||2%||10%||2%|
|Salt Lake||Rs 6,210 - 7,090||0%||5%||4%|
* Average 'ask' rates have been calculated as per listings posted on 99acres.com
** Rental Yield has been calculated for a 1000 Sq. Ft. apartment