Difficult times don’t last long as investors confidence is pretty low as there is some demand from general users and prices are expected to remain stable for most parts of the year. This is one hope that real estate market in Kolkata would look forward to in 2012.
With slowdown and low demand looming large the Kolkata real estate market that had been witness to some exceptional deals and a buoyant residential market in 2011 may head along a bumpy road this calendar year. The overall mood across market is “cautious” as admitted by market sources demand for homes and residential property of Kolkata prices are likely to be less susceptible to an upward movement currently.
Ghost of 2008-2009 economic downturn have returned to haunt developers and this might trickle down affecting the demand for residential apartments. Investor mood is currently on the slide and to certain extent it also reflects a low demand for residential property in Kolkata. While price are expected to remain stable in 2012 but the year will not be good as 2011 people will be more cautious before investing.
Despite of low levels confidence the market sources are anticipating an increase in the number of available residential property in Kolkata during the coming year. Number of good residential projects couldn’t be completed in time in 2011 following elections and non-availability of clearances. The projects are expected to come up during next year add to the number of available units in 2012.
With Developers and real estate marketing firms where 2011 has been a good year for Kolkata developers as major buyouts and acquisitions were carried out during the year. Including- Ambuja’s buying out Ecospace in Rajarhat, PS Group buying DLF’s land along EM Bypass, Rose Valley buying Chrome Hotels and Pranlal Bhogilal selling off another plot in the area to a local developer.
As these deals was accounted for transactions of more than Rs. 1000 Crore this year thereby making the residential property market in Kolkata lucrative.
The real estate sector of Kolkata is currently pondering on the impacts that a second recession can have on the Kolkata market. Global slowdown and fluctuating rupee have forced developers to be sluggish in recent years. Fear of recession is looming large over the economy and this will indeed have an impact on a market like Kolkata and its suburbs, hit by supply of apartment constraints. Developer need confidence and may go slow.
Director of Eden Group Mr. Harsh Modi – which has residential projects worth a few hundred crore in Kolkata hinted at the possibility of developer’s margins taking a further hit this year 2012. According to Mr. Modi the input costs have gone up already thereby affecting margins. Prices rise in input costs are also possible and an apartment that have been pre-booked at a lower price especially the affordable category having massive housing segments would now fail to offset the corresponding hike in input costs.
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