The real estate market in Kolkata witnessed a slight reduction in property prices in a scenario where inventory levels are also increasing swiftly as per several reports. However, experts forecast a positive recovery in the market over the next few months based on increasing property sales in the recent past. As per reports, average property prices in Kolkata have come down to Rs. 4, 256 per sq. ft. in Q1 FY2018-19 as compared to Rs. 4, 386 per sq. ft. in Q4 FY2017-18. This indicates a drop of 3% in average property prices.
However, what experts feel is that the drop in prices will make Kolkata real estate more attractive to prospective buyers who were sitting on the fence all this while. Lower prices will spark higher demand and spur a revival of the market in turn. Sales volumes in Kolkata for real estate came down by 19% in H1 2018 as compared to the same period in 2017 while launches reduced by 35% with many realty players postponing big-ticket projects on account of factors like GST and RERA. The unsold inventory count has increased by a whopping 16, 000 units in only a year in the Kolkata real estate market and the total tally now stands at 61, 307 units as per reports.
With an increase in inventory levels, property prices have corrected accordingly. However, sales volumes are steadily increasing for Kolkata real estate and this is what top developers are banking on. Almost all top real estate developers witnessed an increase in home sales over the last 3 months according to reports. More units are being sold with demand reviving in several key micro-markets. However, 78% of all housing units sold are priced lower than Rs. 50 lakhs and 44% of these housing units are priced below Rs. 25 lakhs. 15% of units are priced between Rs. 50 lakhs and Rs. 1 crore. The affordable housing segment is thus witnessing steady growth and is poised to be the major market driver in the near future along with mid-segment housing.
