Kolkata property market took a knock as lockdown started in Kolkata. The fear of uncertainty gripped all economic activities. The economic commentators’ consensus view was that property purchases will see a massive reduction in demand, as conserving cash would be the mantra for everyone.
But as it happens more often than not, the consensus view was proven to be short of substance as underlying property demand in Kolkata was robust and even during the lockdown large number of homebuyers booked properties in Kolkata. Our January-June period data has thrown up interesting and often unexpected insights.
Affordable homes, specifically homes costing up to Rupees 50 lakh, ruled Kolkata property market with a massive share of 75% of the demand.
South Kolkata, on the other hand, again wins the most preferred location for homebuyers in Kolkata generating a massive 76% of all enquiries.
An analysis of the market data for the January-June period of 2020 threw up interesting insights, some of which we will observe now.
Kolkata Property Market is Dominated by South Kolkata
Although historically, South Kolkata is the most preferred location for Kolkata homebuyers, Joka & Thakurpukur area (43%) constitute the largest chunk of enquiries here, followed by Southern Bypass (15%).
What Type of Homes Kolkata Prefers
Homebuyers mostly prefer 2BHK (47%) and 3 BHK (46%) homes in Kolkata. There is some demand of 1 BHK homes in Kolkata (5%) but demand for other configurations is only 2%.
Budget wise, the largest 3 demand constituents are homes priced at Rupees 21 to 30 lakh (18%), 31 to 40 lakh (22%), and 41 to 50 lakh (24%). Together with home demand at Rupees 11 to 20 lakh, they constitute 75% of all home demands in the Kolkata property market. The 51 to 60 lakh and 61 to 70 lakh segments each enjoy 8% of the overall demand of Kolkata.
The majority of homebuyers’ requirement is 900-1000 sq. ft. (29%) but 700-900 sq. ft. and 1000-1200 sq. ft. are not far behind with 24% buyers requiring either of these.
Even 1200-1500 sq. ft. homes have a sizeable demand of 15% but the demand for small size homes (400-600 sq. ft.) is only 3%.
Area vs Budget Preferences
Homebuyers who want to buy a flat within Rupees 20 lakh predominantly prefer Joka & Thakurpukur (96%). In the case of properties costing Rupees 21 to 30 lakh, Joka & Thakurpukur (68%) and Southern Bypass (22%) are most preferred along with Barasat (8%). Obviously, Joka & Thakurpukur and Southern Bypass have come out as hotspots of affordable homes in Kolkata.
As we look at the next higher property price slab of Rupees 31 to 40 lakh, the most preferred location is again Joka & Thakurpukur (32%). However, homebuyers have good choice of locations such as Rajpur & Baruipur (17%), Behala Chowrasta (14%), Kamalgazi (13%), and Barrackpore (7%).
Even in the budget slab of Rupees 41 to 50 lakh, the dominant location is Joka & Thakurpukur (42%). Other preferred locations are Chiriamore to Agarpara (13%), Rajpur & Baruipur (13%), Kamalgazi (12%), and Behala Chowrasta (9%).
Some Areas Joined the Premium Locations List
Interestingly, some areas which were earlier known as budget locations have grown and joined the premium locations’ list.
Areas such as Garia, Tangra, and Picnic Garden became quite upmarket now and properties worth 1 crore and more are easily finding buyers here. We are witnessing the expansion of the Kolkata property in terms of value as more areas are becoming premium.
Simultaneously, as more areas like Joka & Thakurpukur, and Southern Bypass are becoming property development hotspots, we are also witnessing augmented choice for the affordable homebuyers. These areas are slated to become premium areas in the near future.
Howrah and Hooghly
The demand for properties in Howrah is stable and constitutes of 1 BHK (17%), 2 BHK (35%), and 3 BHK (48%). Budget-wise, the largest demand segment is Rupees 41 to 50 lakh (46%), followed by 11 to 20 lakh (29%) and 51 to 60 lakh (14%). 1000-1200 sq. ft. area apartments are most preferred (44%).
Property demand is Hooghly is growing with the demand for 2 BHK is the highest (48%), followed by 3 BHK (27%). Budget-wise, flats costing Rupees 21 to 30 lakh is the highest (39%), followed by 31 to 40 lakh range (34%) and 11 to 20 lakh (25%). 900 to 1000 sq. ft. flats are highest in demand (40%).
The palpable growth of the Kolkata property market and the dynamic shift of customers’ choices amply prove the vibrancy of Kolkata, Howrah & Hooghly and we expect that property demand will further grow from now on.