Kolkata: Kolkata recorded a sharp slowdown in residential project launches in the fourth quarter, with around 1,500 housing units introduced during the period, marking a 63% decline on an annual basis, according to a report by real estate consultancy Cushman & Wakefield.
The drop in new supply was attributed to pending RERA registrations for several projects and a high base in the previous quarter. During the quarter, mid-sized and smaller developers launched mid-segment projects, while a couple of large city-based developers introduced luxury projects in the central business district and peripheral areas.
Peripheral locations continued to dominate fresh supply, accounting for about 70% of quarterly launches. Areas such as Sonarpur and Bhangar in the south peripheral belt, and Uttarpara, Konnagar, Chandannagar and Howrah in the south-west peripheral zone recorded new launches. The north-east submarket, primarily Rajarhat, contributed around 17% of launches, while the northern submarket accounted for 12%.
For the full year, residential launches in Kolkata stood at about 12,525 units, a 16% year-on-year decline. Peripheral submarkets together made up 67% of annual launches, followed by the north-east with a 20% share.
The mid-segment accounted for around 76% of launches in the fourth quarter, while the share of high-end and luxury housing rose to 14% from 7% in the previous quarter. On an annual basis, mid-segment housing accounted for 66% of launches and high-end and luxury housing 15%. The report also noted an unusually high share for the affordable housing segment in the fourth quarter.
Residential prices continued to firm up despite lower supply. Average capital values across the city increased by 1–2% on a quarterly basis and by 6–7% year-on-year, driven largely by demand in the north-east and south-east submarkets near office corridors. Average residential rents rose by about 1.2% during the quarter.
Key projects launched during the quarter included Primarc Aadvika at Shibpur in Howrah with 182 units, Hyacinth at Sonarpur with 119 units, and Merlin Imperia at Uttarpara with 88 units, the report said.