The property value of Kolkata have risen at the fastest pace among Indian metros since 2007. Since then the value of property in Kolkata rose by an average of 16.8% while those in Bangalore dell by 15.6% in the period. Fewer speculative deals and lower base prices saw the eastern Indian metropolis outpace hotter property markets such as New Delhi and Mumbai where the value of the property rose at a comparatively sedate average of 7.5% and 7.3% respectively.
NHB Residex which was launched in July 2007 measures property prices in six-monthly intervals. The current index captures data submitted by a variety of sources include housing finances companies and real estate agents for 15 cities with plans to widen the index to 63 so-called tier I cities and state capitals in the future. 15 cities in West Bengal capital Kolkata saw average double-digit growth in this period.
Analysts, however, said that the high price of property in Kolkata could be a combination of low starting prices and low supply leading to higher price growth. The base is very low so when prices in few cities move even slightly it seems like a big increase while in Mumbai, even the price of the property shoot up, the increase is not so much because of the high base.
Today it's difficult to get a land because of zoning issues. The cost of land is very high where infrastructure is limited and there are zoning issues. As it is very difficult to buy clearly titled land or residential property in smaller cities which restricts the supply of land, therefore pushing up prices. As others said that the majority of the real estate boom was restricted to the main metros like Kolkata, Mumbai and many more.
The growth of real estate market went to secondary and tertiary markets after a while. Developers such as DLF Ltd, Parsvnath Developers Ltd and Omaxe Ltd went into Kolkata and offered residential property after launching projects in the main metros.
Basically tier II and III cities have been late in the real estate cycle. The prices of property in Kolkata have started declining after June. There is a lot more speculation in mature markets such as Bangalore, Delhi and Mumbai . Kolkata and Chennai are the most conservative markets. The market is largely dependent on people working in the IT/ITES sectors.
Kolkata being one of the preferred location in South Kolkata the location Garia has grown to become a coveted destination due to factors like metro connectivity, EM Bypass en route, hospital, educational institutions and many more nearby. Here the capital value of the residential property in Kolkata locality is from Rs. 3,000 to 5,000 per sq ft. Entire stretch from Ruby Hospital to Garia is an upcoming location and is expected to see growth in demand.
Factors that are contributing to the expansion of this locality are several business properties developing, tiny businesses fitting, and metro connectivity because the last station is near Garia. Garia has become a residential destination for the house seeker falling into the middle-income cluster. Residential complexes of assorted formats starting from Rs fifty,000 to Rs five lakh sq feet equipped with all fashionable amenities and facilities were launched. Kavi Nazrul metro rail station additionally called Garia Bazaar metro rail station helps to produce rail connectivity to and from this locality. it's located near Sitala Mandir or Garia Bridge. lots of infrastructure development is additionally happening with regards road and metro connectivity, that is probably going to drag a lot of demand into the locality.