Fundamentally Kolkata is a Tier II city and its real estate market is not as volatile as those of the primary cities. As residential property of Kolkata was not as seriously impacted by the nationwide slump in the real estate market as cities like Hyderabad, Pune, Mumbai and Delhi. When compared to other cities, the Kolkata residential property market has a rather heavy complement of investors driving it.
As the eastern micro-market specifically Rajarhat has seen the highest presence of investors with investor sales outnumbering end user sales in recent years. It is safe to say that Kolkata’s residential real estate market is driven by investors around 60%. As the growth in residential property rates is not been uniform across all locations. Distinguished central areas show much the same dynamics as those in cities like Mumbai and Pune do because appreciation potential hovers around the peak levels for these areas already.
Central Business District locations from Dalhousie to Elgin Road have not seen much upward or downward movement in residential property rates. The prime area of Alipore and Ballygunge in SBD have residential rates and market dynamics matching those of the CBD. Year 2007, the property in Kolkata ranged from rupees ten thousand to twelve thousand per square feet and now are at rupees twelve thousand to fifteen thousand per square feet.
Secondary Business District areas like Gariahat , the Eastern Metropolitan Region and Central Avenue upto Lake Town on VIP Road have seen higher appreciation as housing demand spread outward into more affordable areas. The rates of the property in Kolkata ranged from Rs. 2500-4000 per sq ft in 2007 to Rs. 3000-7000 per sq ft today. Peripheral Business District areas beyond the SBD rates have also been fluctuating though less dramatically from around Rs. 1500-2000 per sq ft in year 2007 to Rs. 2000-4000 per sq ft today.
Matter of interest the costliest residential property in Kolkata today are in location like Park Street, Alipore, Camac Street, Ballygunge where rates range from Rs. 12000-15000 per square feet. The cheaper areas are in the PBD in areas such as Dumdum and Garia here the rates range from Rs. 1500-2500 per square feet.
The residential capital value in Kolkata to rise steadily in the feature not least of all because of the advent of reputed developers such as DLF, Unitech and Godrej. Considering the demand of prices are likely to rise much faster for residential property in Kolkata than in other real estate segments.
Factors affecting the real estate scene in Kolkata is the growth of the software industry within and around Rajarhat and Salt Lake, leading to appreciation of capital values in these areas. Location like Rajarhat where capital values of apartments and plots in the premium segment witnessing the marginal appreciation and the rental costs of apartments in the category too grew. Different regions of Kolkata the capital money of residential apartments in the affordable category hadn't changed much, where the capital values appreciated by around 12 percent.
Realty sector of Kolkata expanding a fair number of new residential and commercial property in Kolkata are being launched and the enhanced demand of house in the affordable and premium price brackets has fuelled city developers to launch new residential properties across Kolkata.