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KOLKATARESIDENTIAL MARKET UPDATE

INSITEMarket Sentiment

OCTOBER-DECEMBER 2019

Maneesh Upadhyaya Chief Business Officer99acres.com

FROM CBO’S DESK

nominal changes in top eight metros. The rental landscape had a merrier tale to narrate with most metros witnessing ‘asks’ going north between two and four percent, YoY.

The real estate industry awaits Union Budget 2020-21 for pro-buyer announcements to uplift housing demand and sales.

The year 2019 was testimony to the economic slowdown worsening the already shaky housing sector of the country, which is still trying to come to terms with multiple policy reforms and funding crisis. Developers were seen resisting new launches as the remnants of the NBFC crisis still trouble the sector at large. The quarter Oct-Dec 2019 was no different, although it experienced certain green shoots of recovery in buyer sentiment following the announcement of certain financial measures by the Government. The creation of an Alternative Investment Fund (AIF) to help complete stalled residential projects and reduction in repo rates to make home loans cheaper top the list.

There were fewer residential launches in the last quarter of the year against Jul-Sep 2019. Responses and enquiries, too, experienced a downturn, QoQ. Average weighted property prices reported no or

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MARKET INDICATORS

NATIONAL OUTLOOK

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* Capital values represent quarterly change * Rental values represent yearly change * Supply is basis properties listed on 99acres.com

Capital ValuesRental Values

Supply

DELHI NCR

KOLKATA

HYDERABAD

BANGALORE

AHMEDABAD

MUMBAI

PUNE

RENTAL LANDSCAPE Amid subdued home buying sentiment, the rental landscape registered notable growth, YoY. All metros, barring Delhi NCR and Pune, reported an annual uptick of three percent each in rental ‘asks’. While overweighing ready inventory restricted rental growth to two percent in Delhi NCR, the booming IT industry pushed rentals by four percent in Pune, YoY.

SUPPLY Muted sales and the ongoing NBFC crisis forced developers to refrain from launching new residential projects. Delhi NCR, Mumbai, Bangalore, Chennai and Kolkata reported a decline of 20-30 percent in new project additions, QoQ. An inventory of 4.58 lakh stalled units, too, encouraged developers to restrict new launches.

HOME BUYING SENTIMENT Homebuyers continued with their wait-and-watch strategy as the economy failed to pick-up the pace. Alternative Investment Funds worth Rs 25,000 crore cheered the stakeholders of stuck residential projects, but failed to push transactions in the short-term. Property sales plummeted by 20 percent, QoQ, and stood at 55,000 units in Oct-Dec 2019.

CHENNAI

PROPERTY PRICES Delhi NCR, Mumbai, Pune and Chennai did not witness any major deviations in average property ‘asks’, QoQ. Bangalore, Hyderabad, Kolkata and Ahmedabad witnessed prices going up by a marginal one percent. With an unsold stock of 6.55 lakh units across the top eight metro cities, any significant jump in prices is unlikely in the short-term.

KOLKATA’S REALTY AT A GLANCE

Property Prices

Supply

Rental‘Asks’

Demand

Price movement in key micro-markets

* Property prices represent quarterly change * Rental ‘asks’ represent yearly change * Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com

Localities Oct-Dec 2019 QoQ % Change YoY % Change

Rajarhat 3,820 - 4,760 0% 2%

Garia 3,400 - 4,080 1% 5%

Baguihati 2,730 - 3,310 0% 3%

Tollygunge 4,930 - 6,410 0% 0%

Kestopur 2,970 - 3,410 2% 0%

Sodepur 2,830 - 3,510 3% 1%

Behala 3,440 - 4,370 1% 1%

Barasat 2,440 - 2,780 2% 1%

Jadavpur 4,080 - 5,410 3% 6%

Salt Lake 6,000 - 7,060 4% 5%

* Average ‘ask’ rates have been calculated as per listings posted on 99acres.com

7INSITE : Kolkata

Limited number of new launches and subdued sales kept the property prices reeling under pressure in Kolkata in Oct-Dec 2019. Developers’ focused on offloading the unsold inventory of nearly 40,000 housing units. Kolkata is yet to witness any positive trend in sales, resulting in a negligible hike of a percent in average weighted property prices in the studied quarter against the previous one.

A handful of housing projects launched this quarter constituted only two percent share in the total project launches across metro cities. Out of around 2,000 new residential units added to the market, Uttarpara in West and EM Bypass Extension in East housed the majority by Category A builders, such as Salarpuria Sattva, Magnolia Infrastructure and Shriram Properties.

Steady housing demand in Rajarhat and New Town failed to boost property prices in the belts and reported either muted or declining ‘ask’ rates. However, these areas witnessed 4-5 percent spike in average rentals, YoY.

Noticeably, Majerhat Bridge is anticipated to be operational in the next six months. It is touted to propel housing demand in Joka, Maheshtala, Thakurpur and Batanagar. On the other hand, the planned redevelopment of Tala Bridge – a crucial connector to North Kolkata – is most likely to impact the buying sentiment of micro-markets along BT Road such as Dunlop, Khardah and Sodepur. Resultantly, possibilities of any improvement in property prices and demand look meek in the ensuing months.

99ACRES’ OUTLOOK

DEMAND & SUPPLYDYNAMICS

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* Graph depicts demand and supply of residential inventory across budget segments in the studied quarter

48%

38%

14%

76%

18%6%

Affordable Housing

Mid-income Housing

Luxury Housing

Demand Supply

(Within Rs 40 lakh)

(Rs 40 lakh - Rs 1 crore)

(Rs 1 crore and above)

9INSITE : Kolkata 9INSITE : Kolkata

Rajarhat, New Town and other prime areas of South Kolkata, such as Joka, Rajpur, EM Bypass and Tollygunge, remained the preferred locales among homebuyers and captured the maximum share of sale enquiries for properties priced up to Rs 60 lakh in Oct-Dec 2019. However, the city reported restricted sales across budget segments.

Kolkata recorded a marginal hike of a percent in ‘ask’ rates, QoQ. Majority of the demand inclined towards low-cost 2 BHK units priced up to Rs 25 lakh with an average unit size of about 600-800 sq ft. An unmet supply of about 30 percent continued to be the prime reason behind dwindling sales this quarter.

Residential hubs of North and South zones, such as Bara Nagar, Naktala, Joka, Park Circus, Picnic Garden and Barrackpore, saw an uptick in average capital ‘asks’ by four percent, each, QoQ. Salt Lake also witnessed a quarterly upsurge of four percent in property prices owing to increased office space absorption. Average property rates in this area stand at Rs 6,200 per sq ft. The rising demand of co-living and co-working spaces in Salt Lake resulted in a growth of around eight percent in rental rates, YoY.

The rental landscape clocked a two percent hike, YoY. Mukundapur from South topped the popularity charts owing to its robust connectivity to EM Bypass and well-planned social infrastructure. It posted nine percent hike in average rental values in Oct-Dec 2019 against Oct-Dec 2018. Other locales such as Patuli, Santoshpur, New Town Action Area III, Garia, Bhawanipore and Tollygunge also remained tenants’ favourites and scored 6-8 percent growth in the studied period.

KEY HIGHLIGHTS

CAPITAL &RENTAL

4%

2%

1% 1%

0%0%

-1%

-8%

-2% -2%

4%

8%

-4%

4%

7%

6%

4%

-2%

5%

Capital

Salt Lake Kestopur Behala Garia RajarhatBaguihati

Dum DumNew

Alipore Action Area I

Tollygunge

Rental

* %change represents quarterly capital movement and yearly rental movement

0%

11INSITE : Kolkata

With the majority of the demand lying within Rs 40 lakh, the affordable housing segment continues to dominate the housing sector in Kolkata. About 10,000 stalled housing units, which are under redevelopment, are anticipated to benefit from Government’s stress fund. If these units go for sale in the ensuing quarters, the resale market may see a favourable trend. In addition, West Bengal Housing Industry Regulatory Authority (WBHIRA) has ordered a refund in about 24 cases, out of the registered 150 cases, filed against the developers. The economic slowdown and subdued sales compelled the developers to realign their efforts towards offloading the unsold stock. The city is anticipated to witness a higher number of new launches around Bengal New Year in April 2020.

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The data depicts share of new launches across metro cities in the studied quarter

29%

24%

12%

12%

2%

MUMBAI

PUNE

BANGALORE

HYDERABAD

KOLKATA

CONCLUDING REMARKS

BUDGET-WISE DEMAND SUPPLY

NEW LAUNCHES

8%

4%

CHENNAI

DELHI NCR

9%AHMEDABAD

-5%

-6%

DELHI NCR

33%

31%

36%

44%

32%

24%

MUMBAI BANGALORE PUNE CHENNAI HYDERABAD AHMEDABAD KOLKATA

29%

31%

40%

45%

37%

24%

40%

36%

32%

52%

16%

15%

36%

49%

20%

51%

29%

19%

26%

55%

19%

40%

41%

15%

35%

50%

17%

37%

46%

15%

28%

57%

31%

40%

29%

6%

18%

76%

14%

38%

48%

18%

Affordable Housing

Mid-income Housing

Luxury Housing

Demand Supply

* Graph depicts demand and supply of residential inventory across budget segments in top eight metro cities in the studied quarter13INSITE : Kolkata 13INSITE : Kolkata

ANNEXURES

*All prices are per sq ft rates

CAPITAL VALUES

Locality Oct-Dec 2019 Locality Oct-Dec 2019 Locality Oct-Dec 2019

Action Area I 4900

Action Area II 4720

Action Area III 4600

Agarpara 2400

Alipore 13220

Bagha Jatin 4030

Baguihati 3210

Ballygunge 9650

Bansdroni 3870

Bara Nagar 3500

Barasat 2550

Barrackpore 2950

Behala 3900

Bhawanipore 10000

Birati 3200

Brahmapur 3290

Chinar Park 4470

Dakshineswar 3700

Dum Dum 3300

Dunlop 3950

Garfa 4620

Garia 4080

Haltu 4420

Jadavpur 5300

Jodhpur Park 7600

Joka 3600

Kaikhali 4040

Kalikapur 4730

Kamalgazi 3900

Kankurgachi 7850

Kasba 5380

Kestopur 3350

Khardah 2830

Lake Gardens 6040

Lake Town 4900

Madhyamgram 3050

Madurdaha 4400

Mahamayatala 4030

Maheshtala 3450

Mukundapur 5000

Naktala 4600

Narayanpur 3550

Narendrapur 3850

Nayabad 3400

Netaji Nagar 3900

New Alipore 7050

New Garia 3650

Pailan 2500

Park Circus 7300

Patuli 5050

Picnic Garden 4400

Purbalok 4600

Rajarhat 4310

Rajpur 2750

Sakher Bazar 3650

Salt Lake 6200

Santoshpur 4500

Sodepur 3200

Sonarpur 3150

Tagore Park 4960

Teghoria 4200

Thakurpukur 3140

Tollygunge 5730

Topsia 6900

Ultadanga 7000

Uttarpara 3090

Action Area I 15

Action Area III 16

Alipore 33

Baguihati 12

Ballygunge 28

Bansdroni 15

Behala 14

Bhawanipore 27

Chinar Park 13

Dhakuria 20

Dum Dum 11

Garia 14

Gariahat 27

Haltu 19

Jadavpur 18

Jodhpur Park 22

Joka 9

Kaikhali 13

Kalikapur 15

Kasba 18

Kestopur 11

Lake Gardens 20

Lake Town 17

Madhyamgram 11

Maheshtala 11

Mukundapur 18

Naktala 15

Narendrapur 13

New Alipore 21

New Garia 17

Park Circus 20

Rajarhat 14

Salt Lake 20

Santoshpur 15

Tollygunge 19

RENTAL VALUES

CONTACT US0120 4879400Monday - Friday9:30 AM to 6:30 PM ISTEmail: content@99acres.com

The Insite Report by 99acres.com captures the quarterly capital

trends and the annual rental analysis of residential apartments

in key real estate markets – Delhi NCR, Mumbai Metropolitan

Region (MMR), Bangalore, Pune, Chennai, Hyderabad, Kolkata

and Ahmedabad. In order to assess the prevailing sentiment, the

report delves deep into demand and supply of properties across

varied budget segments and occupancy stages. While demand

is a function of queries received, supply is based on property

listings posted on 99acres.com in Oct-Dec 2019.

METHODOLOGY

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