Q1 2024: ‘Residential market in Kolkata registers 12% YoY growth’
Kolkata: The residential market of Kolkata seems to be on a robust growth trajectory as the city witnessed a 12 per cent year-on-year (YoY) growth in the first quarter (Q1) of 2024.
According to the latest report published by the real estate consultancy firm, Knight Frank India, residential market of Kolkata witnessed a total of residential sales volume of 3,937 units with a year-on-year (YoY) growth of 12 per cent, whereas 6,021 units were launched in the period with an annual growth of 89 per cent YoY in Q1 2024. The average residential price rose to Rs 3,612 per sq ft, witnessing an increase of 7 per cent YoY during Q1 2024.
During Q1 2024, 51 per cent of the residential sales were in the ticket size of under INR 5 million category whereas the mid-size segment of Rs 5 million – 10 million was at 36 per cent and the premium segment stood at 13 per cent.
Meanwhile, the office market of Kolkata observed transactions of 0.2 million sqft during Q1 2024 witnessing a YoY decline of 9 per cent. The average transacted rent of the city grew by 1 per cent YoY to Rs. 38.5 sq ft/month during the quarter. During the quarter, the major occupancy/leasing activity was driven by India facing business, 100 per cent of office transactions in the city
Shishir Baijal, chairman & managing director, Knight Frank India, said: “The residential segment particularly witnessed a significant surge, propelled by continued growth in sales in the higher price category of Rs 1 crore and above. This not only demonstrates a strong demand trajectory but also reflects buyers’ confidence in making long-term commitments. Concurrently, the office sector maintained its upward trajectory, delivering one of the most impressive quarterly demand performances to date.
The country’s economic stability has spurred businesses operating in India to expand their operations, consequently driving demand for office spaces. Additionally, many companies are now reverting to conventional office setups, either reducing or discontinuing their work-from-home policies, further boosting demand...”
Sushil Mohta, president, CREDAI WEST BENGAL and chairman, Merlin Group, said: “It is quite heartening to witness an upward growth trajectory in the real estate residential segment in Kolkata. It demonstrates strong growth in new supply, higher sales and higher demand in the sector. The support from the state government in terms of reduction in stamp duty and circle rate has helped the sector sustain during the pandemic period.”
He added: “The pandemic made people realise the importance of spacious homes and own homes which finally stabilize the upward sales riding on rise in income and demand. Kolkata has been predominantly an affordable to mid-market zone. However, the luxury market has also grown significantly this quarter which is a very positive sign. The office sector is also showing consolidation and I am quite hopeful about the growth of the segment in the next quarter.”
