Kolkata Only Saving Grace As Real Estate Stands Still in North & East

Real estate in Kolkata has been the only source of cheer at a time when a slump has taken over the property markets in the north and east of India. According to a monthly PropTiger DataLabs report on real estate in the eastern and northern regions of the country (Monthly Realty Watch – North & East India June'16), residential launches in both the regions saw a decline of 74 per cent in May, when compared to April 2016. The report cites an inventory pile and slow demand as reason for the dip in new launches.

While Noida saw no new launches during the month, Dharitri Infraventure was the only developers that launched a project in Kolkata's Baruipur area. In Gurgaon, Supertech and Sweta Estate launched one project each in May. While Supertech has launched its 300-unit project named Defence Floors at Sector 79, Sweta Estate project Lake Front Towers with 350 units was launched at Sector 33, Sohna.

The price increase trend in the two northern markets have remained slow. While major localities across Gurgaon witnessed nil or negative growth, localities across Noida saw a price dip in the range of two to four per cent year-on-year (YoY). Noida Expressway stood at the bottom with a four per cent annual price fall.

Localities in Kolkata, however, were doing far better than their peers in north. When compared to May 2015, Salt Lake City registered a price increase of 12 per cent while Ballygunge saw a price increase of 10 per cent in May this year.

It is to be noted that civic authorities in the northern region have been putting in place several measures to revive property markets. According to the report, the Noida Authority's move to issue no-objection certificates (NOCs) on a pro-rata basis will help cash-strapped developers meet project delivery deadlines.

The Gurgaon administration has also initiated measures that might start showing impact in the near future. The city administration, for instance, decided to reduce circle rates across segments by 15 per cent recently. The move is expected to make apartments in Gurgaon cheaper, and bring it within the reach of the common man.

For regular updates on real estate, click here