Why Are People Interested to Invest in Real Estate Kolkata?by Avani Rai THE 42
Real estate in Kolkata is increasing in popularity as every individual is considering this city for investing in the real estate sector. Be it for the current use, future use or resale purpose, investing in Kolkata real estate is leaving the investors or the buyers will with ample profit.
The wait for the home buyers may be over who was on the lookout for a great deal in the real estate sector. It is for the first time in seven years that the real estate industry in Kolkata is observing a severe price correction with an ample drop in the actual purchase price of the properties. Hence, the potential buyers, who were waiting for this price correction is finally being able to buy their dream apartment within their budget.
As per the words of Samantak Das (chief economist and national director at Knight Frank, an international residential and commercial property consultant), after years of refusal to budge with the pricing of properties, developers have finally decided to blink their eyes. As per the earlier scenario, the weighted average price quoted by the developers remained constant, even under adverse conditions. While earlier it was only 50% developers who offered a discount on the price that arrived after a negotiation, at present, it is almost 80% developers offering the same discount. Hence, everything together (including 4.5% inflation and actual price rise in construction), a buyer will receive a 12% discount on the effective price, thereby making homes in Kolkata most affordable in years.
So, which Regions in Kolkata have seen a Massive Price Drop?
Prices have come down the massively at Tollygunge, almost by 17%, and the prices here range between Rs 5,500 and Rs 13,500 per sq ft depending on the developer. A 12% price improvement is seen in Rajarhat-New Town where prices range from Rs 4,000 and Rs 6,000. However, prices in Ballygunge, Park Street and Rawdon Street have continued to be static while Salt Lake, Behala, BT Road, Jessore Road, Madhyamgram and Narendrapur have testified a lower price change in the 2%-4% range.
Apart from that, there is a new scenario in the real estate sector. Most builders are offering an upfront discount of 7.5% to ensure that the customers don't feel discouraged by the 12% GST payable against the 4.5% service tax earlier. Developers are also giving schemes to renew the deal, like parking spaces. The reason for this generosity is consecutive low sales of 14,147 units in 2017, lower than during the demonetization-hit in 2016 when 17,647 units were sold.
Apart from that, the entrance of young real estate companies is making sure to come up with modern residential projects at every corner of the city, including greater Kolkata as well. These projects are equipped with upgraded features to provide the potential buyers with a comfortable lifestyle, that too within their means. Hence, owing to such buyer friendly reasons real estate Kolkata is witnessing a high demand of the properties which was not the case 7 years back from now.
Created on Dec 25th 2019 01:49. Viewed 215 times.
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