- The unprecedented second wave of COVID-19 slowed down the recovery of Kolkata’s realty market in Apr-Jun 2021.
- Sale enquiries remained meagre even in the popular localities of the eastern and southern belts, such as Rajarhat, New Town, Joka, Behala and Tollygunge. Housing sales truncated owing to State Elections followed by COVID-19-led lockdown in Kolkata.
- About 400 housing units were added, majorly new phases of existing projects, within Rs 60 lakh budget by Grade-B developers.
- The limited housing launches and subdued sales volume led unsold inventory to remain unaltered at about 28,000 housing units.
- The site visits for new and resale housing units came to a standstill amid lockdown. Many residential societies also restricted the entry of new tenants for site visits.
- With ongoing work-from-home trend, the broker community tried to attract the tenants by offering special discounts on their brokerage. However, landlords refrained from offering any discounts on the rental ‘asks’.
* Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com
The Apr-Jun 2021 quarter saw a negligible hike in average property prices in Kolkata, QoQ. The residential rental landscape remained stagnant as well, despite a few localities recording growth, YoY, on the back of annual renewals and availability of new housing units.
Kolkata recorded a dip in sales volume owing to State Elections followed by COVID-19-induced lockdown. Sale enquiries, even in the popular localities of the eastern and southern belts in up to Rs 60 lakh budget segment, remained meagre. A few site visits were recorded in the first month of the quarter, followed by negligible numbers from May and June 2021. Some large developers concentrated on digital platforms to give virtual walkthroughs to potential homebuyers.
Developers refrained from launching new residential projects as marketing activities and construction came to a halt. A handful of new housing units, majorly new phases of existing projects, were launched within Rs 60 lakh budget segment by Grade-B developers. With subdued sales and limited new launches, the unsold inventory remained unaltered at about 28,000 housing units.
Nevertheless, the chances of price correction are slim since the builders are operating at low-profit margins owing to the rising cost and limited availability of labour and raw material. With the market slowly opening up, sale enquiries and site visits are likely to improve in the next quarter. A few established players, who deferred their plans, may launch their new residential projects in the ensuing months.
Key micro-markets across budget segments
|Key micromarkets||Average Capital 'Asks'||Average Rental 'Asks'||Rental Yield|
|Within Rs 40 lakh||Baguihati||2,900-3,500||12||4.30%|
|Rs 40 lakh - Rs 1 crore||New Town||4,500-5,300||16||3.76%|
|Rs 1 crore and above||Salt Lake||6,000-7,200||21||3.74%|
* Note: Rental Yield has been calculated for a 1,000 sq ft apartment. **Average property prices and rental rates have been calculated as per listings posted on 99acres.com in the studied quarter. ***The range of property prices may vary by 10 percent depending on the age and furnishing status of the residential apartments