The real estate market in Kolkata is gradually picking up, as developers who had been struggling to sell some of their completed projects for the last few months could see bookings taking place at the recent property fair by Confederation of Real Estate Developers Association of India (Credai).
There has been at least a 25 per cent correction in property prices, in and around Kolkata, over the last few months in the city. However, while there were substantial inquiries for residential projects, there was hardly any response to the commercial projects on sale, at the fair, said developers.
Pradip Chopra of the PS Group said there were bookings for at least 40 units at one of residential projects, on sale for Rs 1,699 per square feet, of the company at Rajarhat
"After two-three months, there is a take-off in the sale of real estate projects now, as end users are showing interest," he said.
Pradeep Sureka, president, Credai, Bengal, said he expected sale of 10-12 units, mostly in the low income group (LIG) and middle income group (MIG) segment, at the property show. The units have been up for sale for quite some time.
Santosh Rungta, vice-president, Credai, said, while the footfall at the fair had been almost the same as last year, the number of end user customers was more than the last year.
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Rungta Developers has put three units on sale, out of which, there has been booking for seven-eight units so far.
"There has been good response from the residential segment, but bookings for commercial properties is yet to pick up," said Rungta.
Ravi Venkatesh, CEO, Sureka Group- marketing, said the footfall in the property fair had been more than the last year, mainly on account of fall in property prices and interest rates.
It is to be noted, banks have also seen a gradual pick up in the home loan offtake in the last one month. Under the special home loan package that was announced by the public sector banks, interest rate on home loans up to Rs 5 lakh and loans between Rs 5 lakh and Rs 20 lakh, was set at 8.5 per cent and 9.25 per cent respectively. ICICI Bank has also cut interest rates for new home loan buyers by 25-50 basis points. UCO Bank has also announced back-end concession of 50 basis points on interest rates on housing loan above Rs 20 lakh. Earlier, State Bank of India (SBI) and Central Bank of India had slashed its home loan floating rates to eight per cent for one year.
"People are waiting for further cuts for housing loans. The demand for home loan after the announcement of the earlier cut on interest rates on home loans have been about Rs 10 crore, " said S K Goel, chairman and managing director of Uco Bank.