- Residential property prices and rental ‘asks’ maintained status quo in Jul-Sep 2020.
- Developers restricted their plans to launch new housing units for the second consecutive quarter due to slow economy, liquidity constraints, uncertain job market and demand for ready inventory.
- Limited project launches and subdued sales led the unsold inventory to remain unchanged at 30,000 housing units.
- Enquiries from residential micro-markets in East and South Kolkata, such as Rajarhat, New Town, EM Bypass Extension, Joka and Behala, were equivalent to pre-COVID level.
- The residential rental market remained sluggish due to restricted site-visits by residential societies due to COVID-19. The tenant community continued to renegotiate lease terms.
* Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com
Kolkata’s real estate market witnessed improved site visits, enquiries and sales in Jul-Sep 2020, as against Apr-Jun 2020. However, the property prices and rental ‘asks’ did not alter in the studied period. While the site visits for new properties have reached the pre-COVID level, those for resale and rental markets remained low as several societies put restrictions on the entry of non-residents in the wake of COVID-19.
Builders deferred residential launches due to the ongoing economic slowdown, unstable job market and higher demand for ready homes. A few established builders launched about 100–150
housing units in North and South Kolkata. With restricted project launches and sluggish sales environment, the unsold inventory remained unchanged at 30,000 housing units.
The city witnessed renewed demand for the popular residential areas of East and South Kolkata. In comparison to the previous quarter, sales also showed modest improvement. However, the unstable job market increased the time-frame of sale conversion.
The opening of the Majerhat Bridge and the commencement of Noapara – Dakshineshwar metro line in the next quarter may bolster realty growth of the neighbouring locales. In addition, residential launches in the most preferred segment, i.e. affordable housing, will also act as a key driver to bridge the inventory shortfall and improve sales in the ensuing months.
Price movement in key micro-markets
|Key Micromarkets||Average Capital 'Asks'||Average Rental 'Asks'||Rental Yield|
|Within Rs 40 lakh||Barasat||2,000-2,600||9||3.86%|
|Rs 40 lakh - Rs 1 crore||Rajarhat||3,700-5,000||13||3.22%|
|Rs 1 crore and above||Salt Lake||6,200-6,900||20||3.89%|
* 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