It has been quite some time that Mamata Banerjee took over the rein of West Bengal after 34 long years of Left Front rule. However, the expectations of the real estate sector that expected the property market to grow post-Left is getting dashed due to delay in approvals and clearances. In the last one year, the capital city of Kolkata has witnessed fewer number of new project launches as compared to last year.
Pradeep Sureka, Managing Director of Sureka Group and President of the Kolkata Chapter of CREDAI says, “This year the new supply in residential segment has been significantly low as before the elections approvals had stalled and even now they are very slow. But in next 3-6 months we expect things to improve.”
As per the data available with Jones Lang LaSalle India, only 4600 apartments have been launched this year as compared to 8900 last year. In the second quarter of 2011, the market witnessed the launch of four projects, offering a total of 711 new units which includes the costliest project, Atmosphere offered by Forum Group.
Though project launches have been few, the realty market unlike other parts of the country has witnessed a jump in prices by almost 15-20 per cent. Mayank Saxena, Managing Director in Kolkata for, Jones Lang LaSalle, says, “Post 2009, developers in the city focussed mainly on sub Rs.20 lakh homes, but now everyone is building bigger projects and prices have increased substantially. Last year prices in Ballygaunje, were around Rs.13000-14000 per sft which has climbed upto Rs.16,000- 17000 per sft.”
Also there has seen a price appreciation of 5 per cent in the secondary market and prices in the primary market have increased by 10-15 per cent.
JLL report adds, “A dip in the absorption rate in the city is anticipated due to the steady upward movement of the capital values, which are likely to rise by another 2-10 per cent during the upcoming festival season.”
A research analyst from an international brokerage who did not wish to be identified said, “The real estate market in Kolkata is still in a very nascent stage but prices have started to escalated and both Unitech and DLF who have projects in the city are reporting healthy sales for its launched projects.
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