Kolkata Market Reports contain our half-yearly nuggets of information as well as the trend of homebuyers’ choices in Kolkata. For a few years, we have informed you about emerging property trends so that you are empowered with the right information regarding which property to buy, where to buy, and at what price.
This time is no different. We have collated detailed data points and come to a definite understanding of the homebuyers’ choices. As you know, the areas with the higher demand will drive up home prices in the future.
Investment in these locations will be quite profitable in the years to come.
However, you should consider a variety of factors before you actually choose which property to buy. In any case, this report will offer some interesting pointers to help you choose your dream home.
We have been telling you about a marked trend in the last few Kolkata Market Reports.
Even when we analyzed the market trend in the July-December period of 2022, we see the trend is clear and strong.
Property buyers’ choice is now clearer than ever.
Let’s discuss what the majority of homebuyers are choosing right now.
The Power of 3
The 3 locations in the Kolkata property market command a demand share of 73% together.
The highest share of inquiries is captured by Joka, as is evident for quite some time now.
Joka is preferred by 31% of all homebuyers. Additionally, the Rajpur-Baruipur area (22%) and Rajarhat Newtown (20%) make up the trio.
Another popular location, Behala Chowrasta off D H Road, was relegated to the 4th position with only 6% of all inquiries.
As we stated earlier, 3 BHK is now the primary choice of homebuyers. Because of higher affordability, more stay-at-home in these times of partial work-from-home, needs of children, and occasional guests, 61% of all homebuyers are preferring 3 BHK. Only 30% of all inquiries are for 2 BHK homes.
A Home at Every Budget
Kolkata property market is showing a remarkable phenomenon.
You can buy a flat at different price ranges. This offers tremendous flexibility to homebuyers when choosing the right home.
Home demand is spread out on various price ranges but some segments have the majority of inquiries.
In fact, 4 price segments captured 70% of the overall demand.
Let’s see which they are.
The largest segment is Rs 41-50 lakh and it captured 17% of all inquiries.
The other top price ranges are Rs 61-70 lakh (15%), Rs 31-40 lakh (14%), Rs 51-60 lakh (13%), and Rs 71-80 lakh (11%).
As expected, high-value properties usually command somewhat muted demand but Rs 1.01-1.25 crore segment has captured 9% of the overall demand.
4 Segments Ruled Area-Wise Demand
Interestingly, 4 major segments together are preferred by an overwhelming 90% of all homebuyers and this factor is very significant.
This clearly means that the demand for homes with more than 1800 sq. ft. is quite moderate in the Kolkata property market.
A whopping 28% of all homebuyers prefer homes between 1000 and 1200 sq. ft. This segment is closely followed by the 900-1,000 sq. ft. segment with 27% of the overall demand.
20% of all inquiries are for 1200-1500 sq. ft. homes and 15% of the overall demand is for 700-900 sq. ft apartments.
6% of all inquiries are for 1500-1800 sq. ft. homes.
Budget-Wise Demand in Different Locations
If we examine the details of budget-wise demand in different locations of the Kolkata property market, we will learn interesting insights.
For example, in the Rs 31-40 lakh segment, a huge 59% of the total demand is for flats in Joka while 34% of the overall demand is for homes in the Rajpur-Baruipur area.
The demand character looks very different in the Rs 41-50 lakh segment. Here, 30% of the total demand is captured by the Rajpur-Baruipur area. However, there are other two locations that are not far behind.
Joka is preferred by 25% of all homebuyers in this budget segment, and Behala Chowrasta off D H Road is chosen by 20% of all homebuyers.
The Rajpur Baruipur area leads in the Rs 51-60 lakh price segment, capturing 32% of the total demand, followed by Joka and Behala Chowrasta off D H Road with 20% each.
In Rs 61-70 lakh range, Rajarhat Newtown captures 43% of overall demand while Joka follows with 22%. The Rajpur Baruipur area successfully captured 17% of the overall demand.
Rajarhat New Town is preferred by a whopping 52% of homebuyers in the Rs 71-80 lakh range followed by Joka with 28% of all homebuyers preferring it.
Something very interesting is happening in the Rs 91 lakh-1 crore segment. Here, Lake Town has captured a large part of the total demand (34%).
21% of all inquiries are captured by Rajarhat Newtown. New Alipore has captured 15% of all demand and Joka also has 10% of the demand.
Deep Dive into the Demand in Different Locations
Let’s now consider some more details in these zones. What kind of budgets, areas, or flat types are preferred by homebuyers in these zones?
Kolkata Market Report Jul-Dec 2022 has revealed interesting insights.
In Joka, the majority of demand arises in the budget segment of Rs 31-40 lakh. Even the Rs 21-30 lakh range attracts 18% of all inquiries, and Rs 41-50 lakh range attracts 13% of all demand. These are three major demand segments in Joka but other budget segments also capture considerable demand.
53% of homebuyers prefer 3 BHK homes while 28% opt for 2 BHK homes at Joka. Even 13% of inquiries are for 4 BHK homes. Also, the major section of homebuyers (37%) prefer 901-1000 sq. ft. homes.
53% of homebuyers prefer 3 BHK homes while 46% opt for 2 BHK homes in the Rajpur Baruipur area.
3 major budget segments capture 62% of the total demand 22% of all inquiries are for the Rs 41-50 lakh segment, followed by Rs 31-40 lakh (21% of all inquiries) and Rs 51-60 lakh (19% of all inquiries).
Three major sections capture most of the area-wise demand in the Rajpur Baruipur area. These three segments are 900-1000 sq. ft. (28%), 1000-1200 sq. ft. (26%), and 700-900 sq. ft. (24%).
Homebuyers who prefer Rajarhat Newtown overwhelmingly prefer 3 BHK homes (69%).
Pricewise, two major budget segments rule the roost here. Rs 61-70 lakh range attracts 32% of all inquiries and 28% of all inquiries are captured by the Rs71-80 lakh budget range.
If we consider the area-wise demand in Rajarhat Newtown, the power of 3 is again at play as 3 major segments capture almost all demand. These 3 segments are 1000-1200 sq. ft. (34%), 1200-1500 sq. ft. (29%), and 900-1000 sq. ft. (22%).
Almost everyone looking for a home at Behala Chowrasta off D H Road prefers 3 BHK (95%).
Budget-wise, 3 segments capture 93% of the entire demand in this area. The predominant segment is Rs 41-50 lakh with a 56% demand share.
37% of homebuyers prefer apartments ranging between 1000 and 1200 sq. ft. followed by 29% in the 1200-1500 sq. ft. segment.
One of the interesting locations where many homebuyers are willing to buy a home is Lake Town. Nestled between VIP Road and Jessore Road, Lake Town is an extremely well-developed location with a high livability quotient.
76% of homebuyers prefer a 3 BHK apartment here.
Here again, we witness the power of 3 as 3 major budget segments corner 91% of all demand. 36% of demand is in Rs 91 lakh-1 crore segment, followed by Rs 1.01-1.5 crore (28%) and Rs 81-90 lakh (27%) segments.
Area-wise, two segments capture the majority of the demand share.
In Howrah, the demand for 3 BHK homes (58%) is much higher than for 2 BHK homes (42%). Earlier, more homebuyers preferred 2 BHK apartments.
The highest demand is in the price range of Rs 41-50 lakh (26%), followed by Rs 81-90 lakh (20%) and Rs 51-60 lakh (19%). There is also significant demand in higher price ranges.
Here also, the demand for larger homes is significant. 32% of all homebuyers opt for 1200-1500 sq. ft. homes and 25% of the overall demand in the 1000-1200 sq. ft. segment.
Significantly, 19% of all homebuyers prefer a 1 BHK home in Hooghly and 50% of the demand is for 2 BHK homes.
A massive 44% of all demand is for homes in the price range of Rs 31-40 lakh. Even the Rs 41-50 lakh segment captures 19% of the total demand.
Areawise, the majority of homebuyers (33%) prefer 900-1000 sq. ft. homes.
Where Do We Go from Here?
As we have seen, demand for homes in areas like Joka, and the Rajpur Baruipur area including Southern Bypass, and Rajarhat Newtown is robust. Most of the sprawling gated communities are being built in these areas because of the higher availability of large tracts of land.
South and South-West Kolkata will continue to lead in demand for homes.
The lowest interest rate environment is over for now. RBI has increased the REPO rate recently and now it is 6.5%. However, inflation is stabilizing in India and even globally right now.
We are probably going to see a cautious stance by RBI and it is expected that the interest rate will not rise much from here.
It is a good time to look for properties to buy as there is no fear of EMIs rising sharply. Choose your dream home now.