Realty Check: Kolkata have lowest Property Demand

The city of joy Kolkata is likely to witness a slow off-take of residential properties notwithstanding the state governments of West Bengal efforts to give a push to the sector. A Cushman & Wakefield analysis finds that the city will have a demand for less than lakh residential properties in next five years, which will be the lowest among all the metros in the country. In its report, Cushman & Wakefield projected demand for around 97,300 residential and commercial properties in Kolkata between 2014 and 2018. The data also expected that more than half of the request would come from the low-income group. Around 34 per cent market is supposed to originate from the middle-income group while rest of the order will be from people in higher-income brackets.

According to the analysis, the supply of residential properties in Kolkata will remain flat between 2014 and 2018 at 65,600 projects. More than half of the stocks are likely to be in the MIG category, while the requirement is expected to be most in the LIG segment. In Kolkata housing sector that cost below Rs, 30 lakh are considered to be in the LIG category, while the properties in MIG section are priced between Rs 30 lakh and Rs 1 crore. "Even nationally, most of the demand for homes is between Rs 15 and Rs 35 lakh. It shows that more projects in that category will create more requirements," said Abhijit Das, director of Cushman & Wakefield. He said a controlled demand in the below Rs 1 crore segment is prompting developers to focus more on constructing economical housing.

While joint venture with the government of West Bengal in the real estate market can help in pushing the affordable sector, it was slow in the last few years. However, state urban development secretary Debashis Sen said the real estate market was likely to pick up soon. "Property market Development throughout the country is going through a bad patch. But everybody is hopeful that things will pick up soon, and there will be more to look up to in Kolkata.

The West Bengal Housing Infrastructure Development Corporation plans and executes development projects at Rajarhat New Town on the northeastern fringe of the city. Organized real estate in Kolkata was yet to get into the affordable property market (below Rs 30 lakh) in a big way. "Once new segment of Metro railway become operational, new micro-markets will be created around each station,"

Realtors feel that areas within 3 to 5-kilometer radius of a Metro station have emerged as new residential segments. Realtors in the city also think that the government's approval of Section 14Y of the West Bengal Land Reforms Act will help in promoting affordable housing. The government of West Bengal decision to relax FAR norms will also help properties priced at a premium.

"It’s hard to anticipate the real estate market over a five-year horizon. So far, the market for the property in Kolkata has been increasing at 10% regarding cost," said, chief managing director of Pioneer Property Management Ltd, Jitendra Khaitan, one of the best property advisory service providers in the city.

Rahul Kumar has an excellent Knowledge about investment in Indian Real Estate industry. He passionate about writing about Real Estate market and investment for more details you can check out his latest articles on http://www.buyproperty.com/articles.