Real estate in Kolkata has been a popular investment option for many years now, owing to its growing population and rapidly developing infrastructure. However, with the ongoing COVID-19 pandemic and its impact on the real estate market, many investors are wondering whether investing in Kolkata’s real estate is still a wise choice. In this blog, we’ll explore the current state of the real estate market in Kolkata and help you determine whether it’s still a worthwhile investment.
The Impact of COVID-19 on Real Estate in Kolkata
Like many other cities around the world, Kolkata’s real estate market has been impacted by the COVID-19 pandemic. The nationwide lockdowns and economic slowdowns have led to a decrease in demand for real estate, causing a slump in sales. However, as the pandemic situation is improving, the real estate market in Kolkata is slowly recovering.
According to a recent report by Knight Frank India, Kolkata’s real estate market saw a significant drop in new launches in 2020, with only 6,500 units launched compared to 17,500 units in 2019. However, the report also notes that the demand for ready-to-move-in properties remained high, indicating that investors are still interested in buying property in Kolkata.
Why Investing in Kolkata’s Real Estate is Still a Good Choice
Despite the impact of COVID-19 on the real estate market, investing in Kolkata’s real estate can still be a worthwhile choice for several reasons.
Compared to other metro cities in India, Kolkata’s real estate market offers relatively affordable prices. This makes it an attractive option for investors looking to buy property in a growing city without breaking the bank.
Kolkata has seen significant growth in its infrastructure in recent years, with several new projects in the pipeline. This includes the Kolkata Metro Rail Project, which aims to expand the city’s metro network, and the proposed Kolkata-Dhaka bus service, which will connect the city to Bangladesh. These projects are expected to increase the demand for real estate in Kolkata in the coming years.
Strong Rental Market
Kolkata has a strong rental market, with a high demand for rental properties. This makes it a good choice for investors looking to generate rental income from their property.
Historical and Cultural Significance
Kolkata is a city with a rich history and culture, which makes it a popular tourist destination. This, in turn, increases the demand for short-term rental properties, such as serviced apartments and vacation homes.
Growing IT Sector
Kolkata’s IT sector has been growing steadily in recent years, with several major IT companies setting up operations in the city. This has led to an increase in demand for commercial real estate, making it a good choice for investors looking to diversify their portfolio.
In conclusion, while the COVID-19 pandemic has had an impact on Kolkata’s real estate market, investing in Kolkata’s real estate can still be a worthwhile choice. The city’s affordable prices, growing infrastructure, strong rental market, historical and cultural significance, and growing IT sector make it an attractive investment option. However, as with any investment, it’s important to do your research and assess the risks involved before making a decision.