Though investor’s confidence is pretty low however there's some demand from general users and costs are expected to stay stable for many components of the year. As said- tough times don’t last forever therefore here is it one hope that the estate market in Kolkata would anticipate to in year 2012.
With anxiety of slowdown and low demand looming massive, the Kolkata assets market that had been witnessing some exceptional deals and a buoyant residential market in 2011. Market sources allow that whereas the general mood across the market is “cautious”, the demand for homes and residential property in Kolkata where the costs are possible to be less vulnerable to an upward currently. Ghosts of year 2008-09 economic downturn have returned to haunt developers and this might trickle down affecting demand for apartments.
Investor mood is currently on the side and to a certain extent it also reflects a low demand for apartments. While the prices of property in Kolkata are expected to remain stable in year 2012, the year will not be as good as year 2011. People will be more cautious before investing.
Director of Eden group , Mr. Harsh Modi stated that which has projects worth of few hundred crore in Kolkata hinted at the possibility of developers’ margins taking further hit in year 2012. According to him the input cost have already gone up thereby affecting margins. Further, price of the property in Kolkata rise in input costs are also possible. Here the apartments have been pre-booked at a lower price especially in the affordable category or mass housing segments which would now fail to offset the corresponding hike in input costs. Overall the margins will continue to be tight as developers who booked apartments at a lower price to gain financial advantage are likely to be hit the hardest.
INCREASE IN UNITS:
In spite of low levels of confidence, the market sources are anticipating in an increase in number of available residential units during the coming years. A number of good residential property in Kolkata couldn’t be completed in times in 2012 following elections and non-availability of clearances. Residential property in Kolkata are expected to come up during the next year and add to the number of available units in 2012.
The real estate sector is currently pondering on the impacts that a second recession can have on the market of Kolkata . The global slowdown and fluctuating rupee have forced developers to be sluggish in recent years. Fear of recession is looming massively over the economy and this will indeed have an impact on a market like Kolkata and its suburbs and also hit by supply of apartment forcibly. Developers will need confidence and may go slow and the fact is that investor confidence is currently pretty low as well. However, the remains some demand from general users which according to him is a good sign.
As prices of residential property in Kolkata are expected to remain stable for most elements of the year. There won't be a drop as such in prices. Data available from the National Housing Bank shows that residential property price in 9 cities have shown decline in prices compared to the previous quarter with a maximum fall shown by Kochi by 9% followed by few other cities like Hyderabad by 8%, Ahmedabad by 4%, Lucknow by 4% and Kolkata by 2% are some of them.
Today the market sources to maintain that since there remains a demand supply mismatch with the demand for homes being far in excess of their supply chances of a s downslide in prices of property in Kolkata are minimal. Nevertheless the rise in price isn’t likely to take place immediately.
Developers and Real Estate Marketing Firm, 2011 has been a good year for developers of Kolkata. Four major lighthearted and acquisitions were carried out during the year. Which includes Ambuja’s buying out of Ecospace in Rajarhat, Pranlal Bhogilal selling off another plot, Rose Valley buying Chrome Hotels are among few in the area to local developer. The deals accounted for transactions of more than Rs. 1000 crore during the year, making the property market in Kolkata lucrative. Even price movements didn’t have much of an impact on the developers and decline in price if any was marginal.