Realty Wrap 2016: Kolkata Emerges As The Longshot
The Kolkata real estate market has emerged as the dark horse among the top nine cities in India. The market that has been a slow runner, was among the few that witnessed both on quarter-to-quarter and also, on a month-on-month basis. There were times that Kolkata was the only city to have shown an upward graph in sales.
- Widening of the National Highway 35 between Kolkata and Bangaon will connect the country to neighbouring countries.
- Inventory overhang in 20 months is one of the lowest among nine major cities.
- The state government has funded Rs 50 lakh to the municipalities to make New Town, one of the first 'green city' in the country.
PropGuide takes a tour how Kolkata real estate performed during 2016.
Also read: Monthly Watch: Home Sales Up 27% in Kolkata
The Centre approved a project to upgrade 558-km stretch of roads to link it to the neighbouring countries including Bangladesh, Nepal and Bhutan. One of the key features of the project includes a $130-million worth project for widening the 60-km-long National Highway 35 (between Kolkata and Bangaon). Another major investment in infrastructural development includes a 123-km road, which will connect Diamond Harbour on the outskirts of the city.
According to PropTiger DataLabs, the number of launches in Kolkata in 2016 (January-November) dropped by four per cent when compared to the numbers in 2015. However, the number of units launched in the second quarter of the financial year 2016-17 was higher when compared to the same period previous year. The number of units launched in Q2 was 8,027. In March, three residential projects were launched with 239 units.
Localities that performed the best
Many localities performed well in terms of sales. Five localities that remained the top performers in 2016 are New Town, Rajarhat, Uttarpara Kotrung, Dum Dum and Howrah. In October, Uttarpara Kotrung contributed to 31-35 per cent of total sales in October.
The price trends in Kolkata did not see much fluctuation in 2016. However, some localities saw a price increase as compared to the previous year. Salt Lake saw a price rise of 12 per cent while an increase of 10 per cent was reported in Ballygunge in May. In November, month-on-month sales witnessed an increase of 36 per cent while the year-on-year sale saw a hike of 36 per cent.
The city performed well in term of inventory balance. The percentage change in inventory in Kolkata is three per cent in November 2016 as compared to November 2015. The inventory overhang is 20 months as on November 2016.
The developers who made a strong presence felt in the city in 2016 are Merlin Group, Hiland Group, Siddha Group, Ambuja Neotia and Srijan Realty. The developers have successfully delivered many residential units in the city and have launched different projects.