THRIVING RESIDENTIAL MARKET

Kolkata's residential market has experienced steady growth in

recent years, driven by rising demand from both end-users and

investors. Kolkata's pivotal role as the primary financial and

commercial hub of Eastern India contributes to the rising demand

and soaring prices.

The city benefits from a well-developed transportation network

and a burgeoning presence of multinational corporations.

KOLKATA – MAJOR MICRO MARKETS
SOUTH
Luxury: Southern Avenue, Hindustan Park, Triangular Park
Mid Segment: Golf Green, Tollygunge, Lake Gardens, Jodhpur Park, Anwar Shah
Road
SOUTH-CENTRAL
Mid Segment: DeshapriyaPark, HazraRoad, Bhawanipur

SOUTH-EAST:
Luxury: EM Bypass -Science City, PanchaSayar
Mid Segment: AjoyNagar, HilandPark, PA Shah Connector
South-west
Luxury: Alipore Park Road, Ashoka Road, Burdwan Road
Mid Segment: Tollygunge Circular Road, New Alipore, Behala, Jones Lang Sarani
NORTH
Luxury: Kankurgachi, Lake Town, VIP Road East Salt Lake
Mid Segment: Jessore Road, Ultadanga, Shyambazar, Bagbazar, Manicktala, Dum
Dum

North-peripheral: BT Road, Barasat, Madhyamgram, Sodepur

South-peripheral: Garia, Narendrapur, Sonarpur

South-west peripheral: Joka, Maheshtala, Budge Budge, Thakurpukur

EAST: New Town, Rajarhat (Luxury)

Central: Camac Street, Minto Park, Elgin Road, Loudon Street (LUXURY)
DIVERSE PRODUCT MIX CATERS TO VARIED PREFERENCES

APARTMENTS ROW HOUSES/VILLAS INDEPENDENT FLOORS

Apartments continue to dominate the While apartments take the lead, Rounding out the product mix are

Kolkata residential market, Kolkata's residential landscape also independent floors, which account for

accounting for a significant 97.32% features a growing number of row a small but notable 0.09% of the

of the total supply. These units cater houses and villas, offering buyers a market. These units provide an

to a wide range of budget and more exclusive and private living attractive option for buyers seeking a

lifestyle preferences, ranging from experience. These low-rise balance between privacy and

compact 1BHK units to spacious developments make up 2.59% of the convenience.

4BHK+ configurations. total project portfolio.

STEADY SUPPLY AND ABSORPTION TRENDS

Consistent Supply
Kolkata's residential market has witnessed a consistent supply of new homes, with an
average of around 15,000 units added annually over the past few years. This steady flow of
new inventory helps to meet the ongoing demand from homebuyers.

Healthy Absorption
The city's absorption rates have also remained strong, with over 90% of the new supply
being absorbed by the market. This robust demand is fueled by factors such as affordable
pricing, infrastructure development, and the growing appeal of Kolkata as a liveable and
investment-friendly city.

Manageable Inventory Overhang

Kolkata maintains a relatively manageable inventory overhang, with the current unsold
stock equivalent to around 13 months of sales. This indicates a healthy balance between
supply and demand, providing stability to the residential market.
MACRO UNDERSTANDING

• In Q1 2024, Kolkata's residential market observed a 13.7% QoQ hike in demand.

• In March 2024, Kolkata Metropolitan Region reported registrations of 3,936 apartments, recording a 17% year-on-year (YoY) growth.
• The share of units under 500 sq ft increased from 24% in March 2023 to 45% by March 2024.
• The demand is dominated by 3 BHK units, followed by 2 BHK units.
• Mid-segment apartments with a built-up area ranging from 750 to 1,250 square feet are highly sought-after.
• Kolkata's real estate market shows a significant preference for properties priced below INR 5,000 psf.
• Properties with 3 BHKs and above experienced the most significant growth in rates.
• The southern and eastern regions of Kolkata have gained significant traction among homebuyers due to their proximity to the airport and excellent
connectivity.
• Neighborhoods like New Town and Rajarhat consistently emerge as the most sought-after locales in Kolkata
New Launches Cater to Diverse Preferences
Affordable Homes Luxury Offerings

Developers in Kolkata are catering to the growing demand for At the other end of the spectrum, Kolkata's residential market is
more affordable housing options, with several new launches in also witnessing the introduction of high-end, luxury projects,
the Rs. 3,500 - Rs. 5,000 per sq. ft. price range, particularly in featuring premium amenities and larger unit sizes, targeting the
suburbs like Madhyamgram and Barasat. city's discerning and affluent buyers.

Varied Unit Configurations Lifestyle-focused Developments

The new launches cater to a diverse range of buyer preferences, Developers are also introducing projects with a strong focus on
offering a mix of compact 1BHK and 2BHK units, as well as lifestyle features, such as gated communities, ample green
spacious 3BHK and 4BHK configurations, catering to various spaces, and recreational amenities, appealing to buyers seeking a
household sizes and budgets. more premium living experience.
APARTMENTs - Segment Leads the Way

1 Apartment Dominance 2 Diverse Configurations

Apartments remain the most prevalent residential product in Kolkata, The apartment segment caters to a wide range of buyer preferences,
accounting for a substantial 97.32% of the total supply and 92% of offering units ranging from compact 1BHK to spacious 4BHK+
the overall absorption. layouts. This flexibility helps to meet the diverse housing needs of
Kolkata's residents.

3 Consistent Performance 4 Preferred by Investors

Apartment sales have been consistently strong, with the segment Apartments' popularity extends beyond end-users, as they are also a
maintaining a robust absorption rate of over 90% across different preferred investment option for real estate investors drawn to the
price points and locations. segment's liquidity and healthy rental yields.
 RENTAL VALUES AS OF Q1 2024*

SEGMENT MICRO MARKET AVERAGE QUOTED YoY (%) SHORT TERM OUTLOOK
CAPITAL VALUE** (INR/SF)

South 63,000-85,000 10%

High-end segment

South-East 40,000-85,000 0%

South-West 100,000-185,000 0%

Central 85,000-155,000 12%

East 38,000-68,000 0%

South 20,000-35,000 15%

South-Central 28,000-35,000 0%
Mid segment

South-East 20,000-34,500 12%

North-East 16,250-22,500 20%

North 14,000-26,500 0%
 CAPITAL VALUES AS OF Q1 2024*

SEGMENT MICRO MARKET AVERAGE QUOTED YoY (%) SHORT TERM OUTLOOK
CAPITAL VALUE** (INR/SF)

South 7,500-13,000 12%

High-end segment

South-East 6,300-14,000 0%

South-West 12,000-17,000 0%

Central 12,000-19,500 15%

East 5,000-7,750 0%

South 4,500-8,400 15%

South-Central 5,900-8,750 0%
Mid segment

South-East 3,100-5,500 15%

North-East 2,850-3,900 13%

North 3,150-5,500 0%
Top Performing Developers
SRIJAN REALTY MERLIN GROUP SIDDHA GROUP DTC GROUP
Srijan Realty has Merlin Group, a Siddha Group, a DTC Group, a reputable
emerged as one of the prominent real estate respected name in developer in the city, has
top-performing player in Kolkata, has Kolkata's real estate also made its mark, with
developers in Kolkata, also been a top landscape, has its well-planned
with a strong focus on performer, known for its consistently delivered residential offerings in
delivering quality well-designed, amenity- projects that have key locations like
residential projects that rich developments that resonated with Rajarhat and Joka
cater to the diverse needs appeal to a wide range of homebuyers, leading to attracting significant
of homebuyers. customers. strong sales performance. buyer interest.
PROMISING OUTLOOK FOR KOLKATA'S RESIDENTIAL

MARKET
Positive Fundamentals

Kolkata's residential market is underpinned by strong fundamentals, including a

growing economy, rising aspirations, and increasing urbanization, which are
expected to drive sustained demand for housing in the years to come.

Diverse Product Offerings

The emergence of a diverse product mix, catering to a wide range of buyer

preferences, from affordable apartments to high-end luxury developments,
positions the Kolkata market to cater to the evolving needs of both end-users and
investors.

Supportive Policies

Government initiatives, such as infrastructure development and housing policies,

are expected to further boost the residential sector, making Kolkata an increasingly
attractive destination for homebuyers and real estate investors alike.