Despite a 3-12 per cent slowdown in demand for real estate in Kolkata over the last one year, South Kolkata stands out as the city area most in demand, followed by North and East Kolkata.
According to a survey by makaan.com, an online real estate service promoted by People Interactive Group, South Kolkata alone accounts for 46 per cent of the demand in entire Kolkata metropolis.
The demand in South Kolkata three time more than Kolkata East and more than four times the demand in Kolkata Central.
When taken as a per cent of total demand, the demand in South Kolkata increased by 2 per cent from June to August this year, while it has declined by 1 per cent in East Kolkata as well as in North Kolkata.
The demand, however, has stabilized in Kolkata West and Central, with no variation from June to August.
The report pointed out that South Kolkata leads the demand for rental properties 36 per cent of total demand, followed by North Kolkata (21 per cent) and East Kolkata (19 per cent).
The demand for residential properties on rent in South Kolkata is more than three-times the demand in West Kolkata and almost twice the demand in East Kolkata, the report pointed out.
Demand for rent in Kolkata sub-cities has dropped between 6 per cent and 11 per cent, while the maximum drop in demand was observed in Central Kolkata (11 per cent) while the least drop in demand has been observed for South Kolkata (6 per cent).
The report pointed out that the demand equation indicated a huge appetite for properties in sub- Rs 60 lakh segment.
The price segment, less than Rs 30 lakh and Rs 30-60 lakh, is also the segment where the supply is short of demand.
There is excess supply of properties of above Rs 60 lakh.
Again, 42 per cent of real estate demand is for residential properties worth less than Rs 30 lakh, while 23 per cent demand is for properties priced between Rs 30 and Rs 60 lakh. In other words, 65 per cent of the property seekers in Kolkata are looking to purchase properties worth less than Rs 60 lakh.
According to the report, 2008 is shaping up as the ‘year of affordable housing’. Over the last few years, all major developers focussed on higher-end of the property band, which now has fewer takers. According to the report, there is a huge oversupply of properties above Rs 1 crore, and in case of properties priced above Rs 2 crore, the supply is almost twice the demand for these properties. “The strategy over the next few years for developers must be to marry their projects specification with the actual demand, to creating sustainable businesses,” makaan.com report pointed out. In case of rented properties, the report pointed out that 38 per cent of demand is from tenants willing to spend less than Rs 10, 000 per month, while 29 per cent of rented property seekers are looking at properties worth Rs 10000 - 25000 per month. However, in Kolkata, the supply of properties for rent of less than Rs 10,000 is only 24 per cent, while 23 per cent of rented properties vary between Rs 10, 000 and Rs 25,000 per month. This clearly indicates a mismatch in demand and supply.
Due to rising property prices, house owners are increasingly finding it difficult to rent out their properties in the sub-Rs 25,000 budget, and as a result the supply of properties with rentals above Rs 25,000 is more than the demand for those properties in the market, the report added.
