The restraint shown towards new project launches has helped developers in Kolkata improve their inventory profile, a fact evident from the fact that the City of Joy has the lowest number of unsold stock among India’s eight prime residential markets.
According to ‘Real Insight Residential – Annual Round-up 2021’, an analysis of these leading housing markets by online real estate company PropTiger.com, Kolkata contributes only 4% to the national unsold stock, with inventory as on December 31, 2021, standing at 25,716. The inventory overhang – the period developers would take to sell off this unsold stock, keeping in view the current sales velocity – is also the lowest amongst top-8 cities for Kolkata, at 31 months.
A key reason behind this positive change in Kolkata’s inventory profile is the West Bengal government’s move to offer temporary stamp duty reduction and circle rate cut in 2021, to boost homes sales. Combined with this, record low interest rates also helped housing sales numbers in Kolkata jump 9% in 2021 when compared to 2020. As against 9,061 homes in full year 2020, 9,896 units were sold through 2021. Amid an improvement in consumer sentiment, new launches in Kolkata also jumped 64% in 2021, year on year. The maximum new units were launched in localities of Rajarhat, Barasat and New Town in 2021. With a 5% annual appreciation, average per square foot price of new properties in Kolkata is currently hovering at Rs 4,300-4,500, making the city one of the most affordable mega city in India.