Kolkata – Residential Real Estate Overview

The residential real estate market in Kolkata continues to benefit from the 2% stamp duty rebate and the 10% rebate in circle rates which have been further extended to 30th September 2023 as per the State Budget announcement earlier this year. 

Continuation of incentives such as these has been helpful to advance buying decisions for completed and ongoing projects in a price sensitive market like Kolkata. 

In H1 2023, 7,324 residential units were sold in Kolkata registering a 3% YoY growth. A pause in the repo rate hike cycle in 2023 has also been a pivotal factor in this annual growth. • In line with past trends, South Zone of Kolkata accounted for the highest share in the city’s overall sales volume. South Zone’s share expanded from 34% in H1 2022 to 40% in H1 2023. Locations along the metro corridor in this part of the city have remained a buyer favourite with rapidly developing neighbourhoods for affordable and ‘affordable luxury’ real estate due to the upcoming metro connectivity all the way to Joka.

 Rajarhat accounted for the second highest share with a 25% share in the total sales volume, followed by North Zone with a 17% share. • In contrast to past trends, the share of ticket sizes < INR 5 mn in Kolkata’s total sales volume reduced substantially from 62% in H1 2022 to 49% in H1 2023. This is largely attributed to the high home loan rates in the past six months due to previous repo rate hikes which impacted the homebuyer affordability for the buyer profile in this segment. The share of projects with ticket sizes of INR 5-10 mn largely remained stable at 24% over the past one year. However, the share of residential products in > INR 10 mn category rose from 13% in H1 2022 to 17% in H1 2023