12% jump in Kol realty rates this July-Sept over last year's

KOLKATA: In July-September 2023, housing prices in Kolkata increased 12% against the corresponding period in 2022, according to a price tracker report released by the Confederation of Real Estate Developers Association of India (Credai), the largest body of builders in the country.
Though average prices of homes in Kolkata Metropolitan Area is still one the most affordable among the top eight cities in the country, it has touched Rs 7,406, up from around 5,000 prior to Covid.

"Prices of homes in Kolkata have appreciated at least 25-30% in the past three years," said Credai Bengal president Siddhart Pansari.
The per square foot price of premium projects in localities like Ballygunge has gone up from Rs 18,000 to Rs 25,000 in three years. Similarly, projects in Tollygunge have increased from Rs 8,000 to Rs 12,000, similar to the price escalation at Anandapur off EM Bypass.
According to the study, since Q1 2019, there has been a 20% rise in price in Kolkata. The city's suburbs has witnessed the highest price rise at 45% on an annual basis due to rising demand in mid and luxury segments. Prices of 3 BHK units saw the highest rise at 15% year-on-year.
"The city has witnessed a major push in demand owing to the state government's initiative to reduce stamp duty and rationalize circle rates. This is expected to continue with extension of incentives till June 2024," said Credai National vice-president (east) Nandu Belani.
Credai West Bengal president Sushil Mohta said there had been a significant increase in construction cost in last few years. "New projects were stuck due to mismatch in costs of construction and sales prices. Now with increase in sales prices and demand, developers are able to launch new projects," added Mohta.
About 35% of unsold units fell under the affordable segment that has seen sales decline following increase in prices as well as firming of home loan interest rates. East Kolkata accounted for the bulk of unsold units with 33% share. Overall, 5% of the all-India unsold inventory of around 10 lakh units is in Kolkata.
Hyderabad recorded the highest increase in prices over the past year at 19% followed by Bengaluru at 18%. Delhi and Pune matched Kolkata's price hike of 12% while Ahmedabad was 9%, Chennai 7% and MMR 1%.