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Kolkata residential market continues to be sluggish in the absence of a strong service sector; peripheral markets to watch out for: Knight Frank India

Knight Frank India today launched the seventh edition of its flagship half yearly report – India Real Estate. The report presents a comprehensive analysis of the residential market performance of Kolkatafor the period January-June 2017 (H1 2017).

Key takeaways:  

  • Kolkata residential market remained subdued in H1 2017 with 18% decline in new launches compared to the same period in 2016; Sales volume underwent a steeper fall with 22% decline during the same period.

 

  • On a half yearly basis, H1 2017 saw a slight improvement of 7% in terms of new launches while sales saw an increase of 11% compared to H2 2016.

 

  • The weighted average price remained stagnant in H1 2016, depicting the fact that the market is almost at a standstill, owing to the decrease in new launches and sales, waiting for clarity on factors such as RERA compliance and GST, amongst others.

 

  • Rajarhat emerged as the region with the highest number of residential units launched in H1 2017, accounting for 36% share of the total number of new launches.

 

  • South Kolkata, with one-third of the total sales volume, edged past Rajarhat for the first time in the recent past.

 

  • Significantly, 87% of the new launches announced in H1 2017 were in the ‘below INR 50 lakh’ ticket size category

 

  • Most of the new launches have been taking place in peripheral locations of the city with promise of infrastructure development in the near future.

 

  • Locations such as Baruipur, Narendrapur and Garia in the South and BT Road, Barrackpore in the North are observing increased buyer and developer interest

                                 

Kolkata Residential market trend:

Source: Knight Frank Research

Speaking about the findings, Dr. Samantak Das, Chief Economist & National Director – Research, Knight Frank India said, “Kolkata residential market has been witnessing a tightening of new launches in recent years. It saw the numbers dip substantially by 18% in H1 2017, compared on an annual basis, although there was a slight improvement observed over H2 2016. Sales volumes also observed an increase of 11% in H1 2017 over H2 2016, but recorded a substantial 22% decline as compared to H1 2016. Rajarhat emerged once again as the region with the highest number of residential units launched in Kolkata. Although there was a decrease in its share compared to H1 2016 and H2 2016, Rajarhat is expected to maintain its momentum in the forthcoming years with new office developments, well-planned roads, proposed metro connectivity and proximity to the airport. Significantly, with 33% share in sales, South Kolkata has edged past Rajarhat for the first time, the primary reason being affordable and mid-end housing projects in locations like Baruipur, Narendrapur and Garia.”

About Knight Frank

Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank has more than 14,000 people operating from 413 offices across 60 countries. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants. For further information about the Company, please visit www.knightfrank.com.

 

In India, Knight Frank is headquartered in Mumbai and has more than 1,000 experts across Bangalore, Delhi, Pune, Hyderabad, Chennai, Kolkata and Ahmedabad. Backed by strong research and analytics, our experts offer a comprehensive range of real estate services across advisory, valuation and consulting, transactions (residential, commercial, retail, hospitality, land & capitals), facilities management and project management. For more information, visit www.knightfrank.co.in.

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