Jan-June: ‘South zone of city accounts for highest sale of residential units’
Kolkata: The South zone of Kolkata accounted for the highest share in the city’s overall sales of residential units in the first half (January to June) of 2023 while Rajarhat accounted for the second highest share followed by the North zone.
The residential real estate market in Kolkata continued to benefit from the 2 per cent stamp duty rebate and 10 per cent rebate in circle rates which have been extended by the state government till September 30, 2023, according to the latest report published by the real estate consultancy firm, Knight Frank.
The report revealed that in the first half (H1) of 2023, 7324 residential units were sold in Kolkata registering a 3% YOY growth. It further attributed the rise in sales volume to a pause in the repo rate hike cycle by the RBI.
The study revealed that the “South Zone of Kolkata accounted for the highest share in the city’s overall sales volume. Its share expanded from 34 per cent in H1 2022 to 40 per cent in H1 2023. Locations along the metro corridor in this part of the city have remained a buyer favourite with rapidly developing neighbourhoods for ‘affordable’ and ‘affordable luxury’ real estate due to the upcoming metro connectivity to Joka. Rajarhat accounted for the second highest share with a 25% share in the total sales volume, followed by North Zone with a 17% share.”
In contrast to past trends, the share of ticket sizes less than Rs 5 million in Kolkata’s total sales volume reduced substantially from 62 per cent in H1 2022 to 49 per cent in H1 2023.
This is largely attributed to the high home loan rates in the past six months due to previous repo rate hikes which impacted the homebuyer affordability for the buyer profile in this segment. The share of projects with ticket sizes of Rs 5-10 million largely remained stable at 24 per cent over the past year. However, the share of residential products in the greater than Rs 10 million category rose from 13 per cent in H1 2022 to 17 per cent in H1 2023.
The price range of property in H1 2023 at Central Kolkata, such as Park Street and Rawdon Street, is Rs 12100/sqft - Rs20000/sqft and Rs 10000/sqft – Rs 19,500/sqft, respectively.
In South Kolkata, in areas such as Ballygunge and Tollygunge, the price ranges are Rs 8100/sqft - Rs19200/sqft and Rs 5200/sqft-Rs14,500 sqft, respectively.
In Rajarhat-New Town, the price range is from Rs 3500/sqft - Rs 7100/sqft while at Salt Lake it is from Rs 4800/sqft – 7700/sqft.
The amount of unsold inventory in the South is 13 per cent while in the Central it is 88%. Rajarhat, comparatively, has 23 per cent unsold inventory.
