How the real estate market has changed in Kolkata in the last 10 years

The real estate market in Kolkata has witnessed remarkable growth in the last decade. Many new real estate projects and developments are upcoming. This has scaled up the price of the properties in the city.

However, the price will vary depending on the location, accessibility, and market value, to name just a few factors. Generally speaking, the cost of properties in the city ranges between INR 2500 and INR 10,000 per square foot.

This implies that an apartment of the size of 1000 square feet will cost anything between INR 25 lakhs and INR 1 crore and beyond.

Commercial and residential properties

Depending on the location, the prices of the residential as well as commercial spaces differ. Places like Park Street, Salt Lake City, and Camac Street which are regarded as prime locations are expensive. The cost also depends on the prevailing market conditions and economic and social aspects.

Reasons for the high price of property in Kolkata

Following thorough research and seeing the trends, it was found that the value of the real estate sector in the City of Joy is anticipated to have a flow of apartments by 10% to 15% in the next half a year. As compared to 2022, the price in this sector rose by 12%.

Adding to the above factors, the cost of fuel has increased by several times. This has in turn added to the cost of the properties in the city. This has impacted many developers as many as 20% of them. This has further affected adversely the margin of the promoters.

Here, let us go through factors that have contributed to the rise in the costs of property in Kolkata. They are as follows-

1. Economic growth

   The demand for property has escalated in the city. When the demand is more than the supply, the costs tend to rise. Low interest rates, a limited number of construction projects, and an escalating population may be the probable reasons for the increased demand.

2. Rate of inflation

   Inflation can drive the cost of raw materials for construction higher. Since construction costs become higher, the cost of property becomes higher as well. The raw materials include steel, lumber, and cement.

   Due to inflation, the interest rates are also higher. This may lead to an increase in the cost of borrowing by the financiers.

3. Government policies

   Just as the government has introduced many norms and regulations to foster the growth and development of the real estate sector in the country, a few serve as limitations as well. These can work against the sector too.

   The factors mentioned above are just a few of them. Many others may directly or indirectly affect the property sector. It can be safely said that the property sector in this metropolitan city is growing by leaps and bounds. Regardless of whether it is healthcare, education, corporate segment, or real estate, this city is surely one of the leading cities in the country adding its share of wealth to the country’s diverse portfolio.