Kolkata property market confirms its preference for stable growth with gradual change once again as revealed in our Kolkata Market Report Jan-Jun 2022.
In our continuous study of these trends, which we make public every six months, we capture homebuyersâ€™ preferences with significant insights.
This study offered a deeper understanding of these trends.
In Kolkata, as everywhere in the country, homebuyers have shaken off any hesitation to buy properties. Of course, there are several factors contributing to this enthusiasm of homebuyers.
A low interest rate regime, the need for secure large homes, several state government incentives such as lower registration charges, and increased stay at home for work â€” all have contributed to the enhanced homebuyersâ€™ interest.
Let us dive deep into the latest Kolkata Market Report to understand the state of real estate in Kolkata.
Stable Homebuyersâ€™ Preferences
For example, homebuyers are preferring 3 BHK homes over 2 BHK. We have noticed this in our last 3 half-yearly reports.
More than 50% of overall demand is for 3 BHK in Kolkata at present. This is the default choice of homebuyers now, unlike in the past when 2 BHK ruled the roost.
Now letâ€™s look at the top location preferences of homebuyers.
As revealed in our reports for Jan-Jun 2021, Jul-Dec 2021, and Jan-Jun 2022, top locations are actually unchanged â€” Joka, Rajpur Baruipur including Southern Bypass, Behala Chowrasta off D. H. Road, Rajarhat New Town, and Madhyamgram. Together they capture nearly 80% of the overall demand.
Areawise, 4 segments, 700-900, 900-1000, 1000-1200, and 1200-1500 sq. ft. capture almost 90% of the overall demand and this was also true in the last 6 months.
If we compare the budget preferences, notable changes are visible in Jan-Jun 2021 and Jan-Jun 2022.
In Jan-Jun 2021, the 4 major price based segments were: Rs 21-30 lakh (17%), Rs 31-40 lakh (20%), Rs 41-50 lakh (24%), Rs 51-60 lakh (13%), and Rs 61-70 lakh (9%).
Now, this is somewhat changed.
In Jan-Jun 2022, the share of Rs 21-30 lakh dropped to 9%.
There is a clear shift towards higher price segments: Rs 31-40 lakh (15%), Rs 41-50 lakh (16%), Rs 51-60 lakh (15%), and Rs 61-70 lakh (16%).
Our 6-monthly Kolkata Market Report (Jan-June 2022) gives further clarity.
Let’s dive in.
Where is the Demand?
Homebuyers are clearly preferring Joka and Behala Chowrasta (off D. H. Road) as top locations to buy apartments. Joka has been one of the top draws for quite some time now.
Joka attracts 32% of all inquiries for new flats in Kolkata, closely followed by Behala Chowrasta (19%).
Rajarhat New Town captures 14% of all inquiries while 12% of all inquiries are captured by Rajpur Baruipur area.
Madhyamgram has a modest interest of 8% of all inquiries.
Five locations â€” Joka, Behala Chowrasta, Rajarhat New Town, Rajpur Baruipur, and Madhyamgram together constitute 83% of all demand in the top 10 locations in Kolkata.
The Analysis of All Demand
We have discussed the trend of homebuyersâ€™ choice of BHK in our last few half-yearly reports, and the trend of overwhelming choice of 3 BHK continues. 55% of all homebuyers prefer 3 BHK homes while 38% of them prefer 2 BHK flats.
If we look at the budgets for buying a flat in Kolkata we find that 4 segments dominate over the others.
15% of all inquiries are in the budget range of Rs 31-40 lakh, and 16% of overall inquiries are in the range of Rs 41-50 lakh.
Another 15% of all inquiries are in the budget range of Rs 51-60 lakh, and 16% of inquiries are in the range of Rs 61-70 lakh.
All these price segments together constitute a predominant 62% of all inquiries.
Again, 4 dominant segments rule the overall demand for homes in terms of area. Letâ€™s see how it is.
- 19% of all homebuyers prefer homes between 700-900 sq. ft.
- 22% of all homebuyers prefer homes between 900-1000 sq. ft.
- 28% of all homebuyers prefer homes between 1000-1200 sq. ft.
- 20% of all homebuyers prefer homes between 1200-1500 sq. ft.
Overall, a massive 89% of all demand falls in these 4 categories.
Budget-wise Break-up of Different Zones in Total Demand
Letâ€™s now discuss budget-wise demand in different areas of Kolkata.
Behala Chowrasta leads with 48% of all demand in the Rs 31-40 lakh range, closely followed by Joka with 37% of the overall demand in this price range.
In Rs 41-50 lakh segment, 4 areas capture 84% of overall demand. Joka leads with 37% of the total demand, followed by Behala Chowrasta (25%), Rajpur Baruipur (13%), and Madhyamgram (9%).
Joka again leads in Rs 51-60 lakh price segment, capturing 37% of the total demand, followed by Rajpur Baruipur with 20%.
In Rs 61-70 lakh range, Joka captures 48% of overall demand while Rajarhat New Town follows with 24%.
Rajarhat New Town is preferred by 42% of homebuyers in Rs 71-80 lakh range followed by Joka with 27% of all homebuyers preferring it.
More Details for Each Zone
Letâ€™s now consider some more details in these zones. What kind of budgets, areas, or flat types are preferred by homebuyers in these zones?
There are interesting insights to consider.
In the case of Joka, the majority of demand arises from relatively affordable homes. 23% of the demand is for homes in the budget range of Rs 61-70 lakh as compared to only 16% one year back, but there is substantial demand for other budget ranges too. This clearly shows that Joka is now preferred by homebuyers of mid-range price points and no longer a predominantly affordable location.
51% of homebuyers prefer 3 BHK homes while 42% opt for 2 BHK homes at Joka.
In the case of Behala Chowrasta, 36% of all homebuyers prefer homes within Rs 31-40 lakh budget range. The other 2 major segments are Rs 21-30 lakh (26%) and Rs 41-50 lakh (21%).
An overwhelming majority of 64% of homebuyers prefer 3 BHK homes in Rajarhat New Town. Budget-wise, 30% of all demand is in the price segment Rs 61-70 lakh, while 20% of all demand is in Rs 51-60 lakh, and 28% of the demand is in Rs 71-80 lakh segment.
There is significant demand for relatively larger homes in Rajarhat New Town. 31% of all homebuyers prefer 1200-1500 sq. ft. homes while 31% of all demand is for 1001-1200 sq. ft. homes.
Interestingly, 68% of all homebuyers prefer 3 BHK homes in the Rajpur Baruipur area.
While the largest demand segment is Rs 51-60 lakh here, there are significant demands in other price ranges also, especially in Rs 1.01-1.25 cr (21%).
Letâ€™s see the demand details of Madhyamgram now.
57% of all homebuyers want a 3 BHK home.
The biggest demand (35%) is in the price segment Rs 41-50 lakh, followed by Rs 51-60 lakh (28%).
If we consider the above data, a few trends are quite obvious.
Demand is shifting towards 3 BHK homes. 3 BHK homes are the default choice of the majority of homebuyers now.
People are preferring larger homes. In every location, the demand for larger homes is increasing.
Demand is growing in higher price ranges significantly.
In Howrah, the demand for 2 BHK homes (62%) is much higher than 2 BHK homes (38%).
The highest demand is in the price range of Rs 41-50 lakh (30%), followed by Rs 31-40 lakh (23%). Obviously, the demand in the affordable price range is stronger in Howrah.
Here also, the demand for larger homes is significant. 23% of all homebuyers opt for 1200-1500 sq. ft. homes and 20% of the overall demand in the 1000-1200 sq. ft. segment.
Significantly, 22% of all homebuyers prefer a 1 BHK home in Hooghly and 46% of the demand is for 2 BHK homes.
A massive 50% of all demand is for homes in the price range of Rs 31-40 lakh.
Areawise, the majority of homebuyers (41%) prefer 900-1000 sq. ft. homes.
Howâ€™s the Trend Shaping up?
As we have seen, demand for homes in areas like Joka, and Rajpur Baruipur including Southern Bypass is robust. Most of the sprawling gated communities are being built in these areas because of the higher availability of large tracts of land.
South and South-West Kolkata will continue to lead in demand for homes.
The lowest interest rate environment is over for now. RBI has increased the REPO rate recently and now it is 5.4%. However, inflation is stabilizing in India and even globally right now.
We are probably going to see a cautious stance by RBI and it is expected that the interest rate will not rise much from here.
It is a good time to look for properties to buy as there is no fear of EMIs rising sharply.
This is the right time to seek freedom from rent, a small home of your own, and a bigger home if your home is smaller than you need.
Buy your dream home.