Interest rates are cyclical; a lower interest rate regime lasts a few years and then is followed by a higher interest rate environment.
We are currently living in a high-interest regime but it looks like this is going to end soon and interest rates will be revised downward soon.
Homebuyers intuitively know this. They are not postponing home purchases even if the EMIs have increased.
The real estate industry is witnessing a massive gush of demand currently.
In fact, the homebuyers as well as the developers are immensely upbeat — the elevated housing demand is encouraging developers to launch new projects all over India.
Kolkata property market is also resilient and the demand for homes is quite strong.
We will dive a little deeper to understand the prest state of the Kolkata real estate industry now.
Let’s go.
Property Demand is Robust
Property transaction in Kolkata is seeing enhanced momentum in spite of higher home loan interest rates.
Obviously, homebuyers are not much worried about higher interest rates.
Additionally, the interest rates have been kept on hold by the RBI for now, and they are expected to go up aggressively from here.
In fact, the expectation is that the rates will be brought down after some time.
Generally, property demand is quite stable in Kolkata.
Why are homebuyers upbeat now?
It is because home prices in Kolkata is quite affordable and even if you account for somewhat higher EMIs, they don’t really pinch the pocket.
There is another key factor that is helping homebuyers to choose their dream homes.
What is that?
We will see in a moment.
Fast Growing Connectivity
In recent times we have been happy to see increased Metro coverage in different sectors in Kolkata.
Better Metro coverage immediately adds other ancillary transport services such as autorickshaws for last-mile connectivity. This has happened in areas adjacent to Metro stations of newly operational sections.
As an example, Joka has been the most preferred location for buyers of affordable homes for months now. This is on the back of the Joka-Esplanade Metro project. There is a lot of enthusiasm at the start of the Joka-Taratala stretch which will directly benefit the residents of Behal and Joka in a variety of ways.
Similarly, areas around Dakshineswar and B T Road considerably benefitted after the extension of the Metro line up to Dakshineswar. The recent operationalization of the Metro stretch of Salt Lake Sector 5-Sealdah is also benefitting travellers residing near the suburban rail network.
Another example of the confluence of the Metro and the road network that has helped to create a property hotspot is Garia and the surroundings. E M Bypass, the Metro, and the Southern Bypass have augmented the livability quotient of the entire area substantially. In fact, Southern Bypass is one of the most promising property destinations in the southern part of the city today.
Even the Maheshtala-Batanagar area has kindled homebuyers’ interest after the introduction of the Taratala-Batanagar Sampriti flyover.
Overall, better connectivity and the synergy among road, Metro, and rail are boosting real estate development.
Coming up of Select Locations in Howrah
Another positive development is the opening up of various locations on the western bank of the Ganges with various property projects.
With an increased livability quotient and better urban infrastructure, several areas in Howrah are much preferred by homebuyers now. Properties in these locations are relatively affordable, especially at North Western Howrah.
One of the catalysts of these changes is speedy connectivity with Kolkata via Vidyasagar Setu, popularly known as the 2nd Hooghly Bridge.
It offers easy and direct connectivity between the southern part of Kolkata and Howrah and significantly improved the livability quotient of North Western Howrah.
You can reach your office at Chowringhee or Camac Street in a matter of minutes from Santragachi or Andul now, and this convenience has ignited the interest of homebuyers. Many of them are highly interested in buying property in these areas. With a number of gated communities already coming up, these areas are fast turning into property hotspots.
It is expected that several locations in Howrah will be preferred by homebuyers after the Howrah-Esplanade section of the East-West Metro is operational.
Distinct Preference for Gated Communities
Homebuyers are clearly preferring a superior lifestyle today. Better luxury, leisure, and lifestyle amenities better security, and community living are drawing more homebuyers toward such residential projects.
Moreover, gated communities are extensively landscaped with detailed planning so that nature is a powerful element. Everybody loves the greenery and openness of sprawling gated communities.
These gated communities grow up as extended families where residents celebrate together, share their joy and grief, and stand by each other in all of life’s difficulties.
Customers are also preferring 3 BHK over 2 BHK apartments now and a somewhat larger carpet area is chosen these days.
The Future is Filled with Optimism
It is expected that the RBI will not raise interest rates aggressively from here as inflation is more or less under control.
The internal factors contributing to inflation is moderate at this point in time. However, high crude oil prices may increase inflation in India.
The US Fed increased interest rates by 25 basis points and this puts some pressure on the RBI to hike rates in India but it is generally believed that the RBI will maintain a wait-and-watch stance for now.
As we are experiencing a good monsoon, it is reasonable to assume that food prices will remain moderate and there will not be any inflation spike.
The underlying demand in India for real estate is very strong at this time. Not only residential properties, the demand for commercial real estate and logistic centres are also elevated.
It is the right time for homebuyers to go for booking their chosen homes. As there is no fear of exorbitantly high interest rates or economic slowdown in India, acquiring a hard asset will provide considerable financial benefit.
Additionally, Kolkata property prices may rise further as and when various Metro projects are completed, and connectivity is improved.
It is surely a comfortable time to buy your dream home.
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