“Why now?” asked Dilip to his beautiful wife Subarna.
They were discussing whether it was the right time to buy a flat in Kolkata.
Subarna has been egging on her husband to book their first home in Kolkata for some time now, and Dilip has been telling her to be patient and wait for some more time.
“We will get a better deal if we wait a bit,” he said.
Subarna didn’t appreciate his view at all.
“The prices will inch up. Besides, this time is as good as any,” she said firmly.
Dilip, as usual, gave in to Subarna’s firm stand on any matter.
This time is no exception.
“Ok, let’s check out nkrealtors.com and look up the flats on offer,” he said.
Homebuyers are on an Overdrive in Kolkata
Kolkata property market showed robust growth in 2023 with demand for homes on an upswing. 14999 properties were registered, incentivized by the continuation of the stamp duty concession.
Overall, a significant 16% uptick in sales volume was achieved compared to 2022.
In the residential segment, ticket sizes between Rs 50 lakh and Rs 1 crore witnessed an impressive 71 percent YoY growth, indicating a strong appetite for mid-range properties.
The buoyancy in demand is not a flash in the pan. The momentum continues even in 2024.
As many as 4,806 apartments were registered in the Kolkata Metropolitan Region in February, a 306% month-on-month (MoM) growth, after a slowdown in property registrations in January 2024 due to the Pausha period, data accessed from the Directorate of Registrations and Stamps Revenue, Government of West Bengal, showed.
On an annual basis, this represents a strong 64% year-on-year (YoY) growth.
Apartments ranging from 501 to 1,000 sq ft constituted 48% of the total registrations.
As Kolkata marks its best Feb property registrations since 2020, the growth underscores the city’s resilience and vitality in the real estate sector.
What are the Factors Influencing Homebuyers?
There are valid reasons for the uptick in home sales in Kolkata.
Let us discuss this in some detail.
One of the major reasons for this is the 2% stamp duty cut benefit offered by the Government of West Bengal since July 2021. While there was a time lag between property sales and registrations earlier, they happen almost simultaneously now.
As per the industry watchers, the relative affordability of Kolkata properties has also contributed to higher homebuyers’ interest. In fact, the share of smaller flats has increased considerably, indicating a higher preference for budget apartments.
Besides, the interest rates are stable now and no immediate hike in EMIs is expected. This gives a lot of confidence to the homebuyers. It is also expected that the interest rates have peaked and can only go down from here, maybe in the second half of the current financial year. When that happens, home loan EMIs will start to come down giving relief to homebuyers.
Optimism about the Economy
Consumers usually postpone the purchase of high-ticket items if there is uncertainty about the economy.
Currently, the Indian economy is very resilient and stable. There is not much uncertainty.
Recent data indicates it has climbed to the fifth position globally, with a nominal GDP of $3.4 trillion.
Moreover, raw material prices are also steady now and home prices are also relatively stable.
The good feeling of economic stability is influencing homebuyers to look for various property investment options.
How to Benefit from Property Investment Now?
Various property investment opportunities are available in Kolkata right now.
While other asset classes like gold and equity prices are visibly elevated right now, property prices are still in the realm of affordability.
Moreover, property prices in Kolkata are set to rise, promising handsome returns to homebuyers.
Several factors will influence property prices in Kolkata. Let us talk about them.
Kolkata is currently at the beginning of massive infrastructural development, especially new flyovers and Metro expansion. The ongoing projects, when completed, will significantly transform connectivity.
In our blog, we regularly talk about the upcoming infrastructure projects in Kolkata.
Such infrastructure development, particularly the Metro extension, has always been associated with the growth of the property market.
This has happened earlier and is likely to happen again.
However, property prices start to move up much before the projects are completed and the right time to buy properties is when these projects begin.
For example, properties in the areas around the Airport-Garia Metro line are expected to get a fillip soon.
If you buy a property now in any area near the new Metro lines, you may benefit substantially.
Strike the iron when it is hot.
Contact us today.
