Kolkata property market is slowly changing with buyers’ budgets, flat areas, and location preferences. The process of change is gradual but definitive. It seems that homebuyers prefer a few locations in South Kolkata such as Joka or Rajpur Sonarpur, especially for relatively affordable homes, while certain other areas near EM Bypass and Rajarhat New Town for high-end homes.
Apart from location preferences, homebuyers are arriving at a different value for money equations as regards their preferences for budget and flat area.
An analysis of the market data for the January-June period of 2021 threw up interesting insights, some of which we will discuss now.
2 Locations Generate Half of All Enquiries in Kolkata Property Market
Although the Kolkata property market is quite varied and contains quite a number of micro-markets, only 2 locations generate almost half of all enquiries from homebuyers. In our earlier study in the same period last year, we had seen this trend. The trend continues and Joka attracts the maximum number of homebuyers’ interest.
Joka and Rajpur Sonarpur are 2 major locations preferred by homebuyers. Joka (35%) and Rajpur Baruipur (14%) now command almost half of all enquiries. Behala Chowrasta (9%), Rajarhat New Town (9%), and Maheshtala (7%) constitute another quarter of all enquiries.
What Type of Homes Kolkata Prefers
Homebuyers prefer 3BHK (51%) and 2BHK (44%) homes in Kolkata. There is some demand of 4 BHK homes in Kolkata (4%) but demand for 1BHK is only 1%. This is a significant change. It shows that the customers are increasingly preferring 3BHK homes and demand for 2BHK homes is somewhat decreasing.
Budget-wise, the largest 4 demand constituents are homes priced at Rupees 21 to 30 lakh (17%), 31 to 40 lakh (20%), 41 to 50 lakh (24%), and 51 to 60 lakh (13%). Altogether they constitute 74% of all home demands in the Kolkata property market. The 61 to 70 lakh segment enjoys 9% of the overall demand of Kolkata.
The majority of homebuyers’ requirements is 1000-1200 sq. ft. (29%) but 900-1000 sq. ft. is not far behind with 27% buyers requiring it. Our assessment that more and more homebuyers would require homes with a larger area is being borne out. Nowadays, only 20% of the overall demand is for 700-900 sq. ft. homes. 17% of the overall demand is for 1200-1500 sq. ft. homes, and this segment is showing demand growth.
Area vs Budget Preferences
Homebuyers who want to buy a flat within Rupees 21 to 30 lakh, Joka (39%) and Rajpur Baruipur (25%) are most preferred along with Maheshtala (15%) and Diamon Harbour Road (9%). Obviously, these areas have emerged 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 on D H Road (27%). However, homebuyers have a good choice of locations such as Rajpur Baruipur (15%), Behala Chowrasta (15%), Maheshtala (15%), and Madhyamgram (6%). All other locations constitute 22% of the demand in this price range.
Even in the budget slab of Rupees 41 to 50 lakh, the dominant location is Joka on D H Road (44%). Other preferred locations are Behala Chowrasta off D H Road (21%), Rajpur Baruipur (9%), Kamalgazi (7%), and Behala Chowrasta Rajarhat New Town(4%).
In the budget slab of Rupees 51 to 60 lakh, the predominant location is Joka on D H Road which commands almost half of all demand (49%)followed by Rajarhat New Town (14%), Rajpur Baruipur (8%), Kamalgazi (8%), and Behala Chowrasta off D H Road (7%).
As we go up the budget segment, we see that other locations such as Rajarhat New Town (30% in Rupees 61 to 70 lakh segment and 23% in Rupees 71 to 80 lakh segment) emerge as top demand creators. Locations like New Alipur and B T Road emerge as sought-after locations in these price points.
The top location in Rupees 1.01 to 1.25 crore is Tangra (34%), followed by Garia, E M Bypass (30%). In fact, Garia, E M Bypass is one of the most preferred locations in the premium segment now.
Howrah and Hooghly
The demand for properties in Howrah is stable and constitutes 1 BHK (10%), 2 BHK (43%), and 3 BHK (46%). Budget-wise, the largest demand segment is Rupees 41 to 50 lakh (24%), followed by 61 to 70 lakh (18%) and 51 to 60 lakh (16%). 1000-1200 sq. ft. area apartments are most preferred (32%), followed by 1200-1500 sq. ft. (29%), and 900-1000 sq. ft. (19%).
Property demand is Hooghly is growing with the demand for 2 BHK is the highest (44%), followed by 3 BHK (32%), and 1BHK (24%). Budget-wise, flats costing Rupees 31 to 40 lakh is the highest in demand (52%), followed and 11 to 20 lakh (24%), and by 21 to 30 lakh range (22%). 900 to 1000 sq. ft. flats are the highest in demand (42%).
The palpable growth of the Kolkata property market and the definitive shift of customers’ choices amply prove the vibrancy of Kolkata, Howrah, Hooghly and we expect that property demand will further grow from now on.
