Kolkata’s real estate market is witnessing a new era of affordability. The real estate market in Kolkata is at its most affordable levels in the last 7 years as per reports. For buyers who are awaiting fabulous deals on real estate, there are several options to choose from. This is a buyer’s market and should attract more end-users and investors alike to the market over the next few months. There is a correction in prices across the city with a major reduction in the actual buying price due to developer discounts and other freebies. Real estate developers in the city have finally been lowering prices of properties, particularly the weighted average price which would remain absolutely constant even in times of market uncertainty.
However, 50% of real estate developers gave freebies or discounts on the effective realty price which arises out of negotiations. However, 80% of developers are now giving discounts on the prices in spite of around 4.5% inflation and the rise in costs of construction. This takes the effective discount tally to around 12% and homes are at their most affordable levels in several years. Tollygunge is a major example in this regard. Prices in this prime South Kolkata neighbourhood range between Rs. 5, 500 and Rs. 13, 500 per sq. ft. depending on the project as per reports. However, prices have corrected by a whopping 17% in recent times. There has also been a correction of 12% in Rajarhat New Town where prices vary between Rs. 4, 000 and Rs. 6, 000.
Prices across Park Street, Ballygunge and Rawdon Street have remained the same while prices have corrected by approximately 2-4% in stretches like Salt Lake, Jessore Road, BT Road, Narendrapur, Behala and Madhyamgram. Most real estate developers are offering discounts of 7.5% to customers who may be encouraged by the GST of 12% now in comparison to 4.5% of service tax. Real estate developers are also offering freebies like garages/parking spaces and this is majorly attributed to lower sales volumes of 14, 147 units in the year 2017 as per reports. Real estate developers have also been going slow in terms of new project launches. As compared to 2016’s tally of 20, 984 units, there were just 15, 940 units that were launched last year which indicates de-growth of around 24%. However, the notification of the West Bengal Housing Industry Regulation Act will definitely lead to growth in real estate sales.
