Q2 2023: ‘Kolkata among top 8 cities to witness growth in sale & new supply of residential units’

Kolkata has featured in the list of top eight cities where sales and new supply of residential units witnessed an 8 per cent and 11 per cent year-on-year (YoY) growth respectively in the April-June quarter (Q2) of 2023.

Kolkata is one of the cities along with Mumbai, Pune, Chennai and Delhi that has recorded positive growth in the sale and supply of residential units, according to a published report by PropTiger.com, a real estate transaction and advisory services platform backed by REA India.

The report mentioned that a total of 80,250 units were sold in the eight cities in Q2 2023 compared to 74,320 in the year-ago quarter, showing a growth of 8 per cent.

The markets covered in the report include Kolkata, Ahmedabad, Bangalore, Chennai, Hyderabad, Mumbai Metropolitan Region, Delhi-National Capital Region, and Pune.

During Q2 2023, 15 per cent of the residential units sold were classified as ‘ready-to-move-in’, while the remaining 85 per cent were still under construction.

The majority of sales, comprising 27 per cent, were concentrated in the price range of Rs. 45-75 lakh, closely followed by the price range of over Rs. 1 crore, which accounted for 25 per cent of the overall sales. In a semi-annual comparison, sales witnessed notable growth of 15 per cent, while new supply experienced a substantial increase of 43 per cent, the report observed.

However, compared to the first quarter of 2023 where Kolkata witnessed sales of 2230 units, in Q2 it saw a sale of 1940 units. But the supply side has been robust. In Q2, Kolkata witnessed a supply of 3510 units compared to Q1 where it saw a supply of 2680 units.

The largest portion of new residential units introduced in Q2 2023 was focused on the Rs 45-75 lakh price range, accounting for the highest share of 33 per cent among all launches. Notably, units priced at over Rs one crore constituted a significant portion, representing nearly 29 per cent

of the total.

“India’s top eight residential markets continue on a growth path with sales rising by 8 per cent in the June quarter. The RBI’s decision to pause the hike in the key lending rate helped in sustaining strong positive sentiments for buying residential properties,” said Vikas Wadhawan, group CFO, REA India & Business Head PropTiger.com.

“The driving factors behind the uptick in housing sales over the last two years are pent-up demand from the COVID-affected period, growing appetite for homeownership, revival in the economy post-pandemic, and the evolving need for more spacious homes. We anticipate that the upward trend will persist, making the 2023 calendar year even better than the previous year in terms of sales performance,” he added.