According to a study by the Economic Times, investment in real estate in Kolkata showed an 11% gain in last year’s September quarter. In addition, the property market in Kolkata is the biggest in Eastern India. In the past ten years, it has outperformed other significant property markets like Gurgaon, Noida, and Mumbai in terms of growth. In addition, the poll reveals that Kolkata has the most incredible unsold inventories, mainly due to COVID-19, even though the city’s market size is ranked third behind Bengaluru and Pune.
Compared To Other Cities, Kolkata Properties Are More Affordable-
The absorption rate of investments in real estate in Kolkata fell after two years of subpar financial performance, which caused a striking increase in absorption prices in the current market. The quarterly supply increased in part due to the launches by significant real estate developers.
The epidemic has also significantly increased demand for mid-segment and cheap housing. Real estate investment sales are sure to increase due to this trend. Due to the erratic equities markets, real estate developers are investing in low-inflation states like Kolkata. Kolkata is, therefore, a smart choice for investors during the pandemic.
Ready-to-move apartments in Kolkata increase sales-
Kolkata’s real estate development industry is booming, notably with residential buildings offering a wide range of luxurious projects with cheap housing. There are several ready-to-move-in apartments available for purchase in Kolkata.
The present is the finest moment to invest in real estate in Kolkata because real estate developers are trying to profit from unsold inventory. Projects like these, particularly, lead to low pricing and lower GST. Kolkata’s new town has an exceptionally high demand for furnished apartments.
Real estate investments are increasing thanks to government assistance-
The Reserve Bank of India is providing mortgage loan interest rates at historically low rates. To help create favorable interest rates, the RBI has also reduced the repo rate. Additionally, to boost sales in the real estate sector, the government has unveiled several fiscal packages with alternative benchmark rates.
The RBI unanimously decided to maintain the repo rate at 4% and the reverse repo rate at 3.5 percent on October 9, 2020, as long as the market stabilizes. According to the most recent changes announced by the RBI, the risk weights on mortgages have been streamlined and are only now tied to Loan-to-Value (LTV) ratios. This has added exciting opportunities for real estate developers in Kolkata and has been a motivating factor for real estate investment in the city.
Additionally, the PMAY Scheme and Nijashree Scheme, which add value to everyone’s access to affordable housing, are being developed by the Central Government and the State Government of West Bengal. Such programs are bringing down the cost of apartments in Kolkata and paving the way for low-cost housing initiatives and the sale of one-bedroom apartments in Kolkata.
Central banks are also lowering their interest rates on various house loans, boosting the opening of new real estate developments in Kolkata.
One of the leading American industries for creating jobs is real estate. Real estate in Kolkata and the real estate developers in Kolkata are sure to reach a new high thanks to creative measures and backing from the State Government. Suppose the real estate industry continues to implement policy rate easing while successfully containing interest rates at the local level. In that case, the overall cost of purchasing a property will decrease, stimulating the percentage of homebuyers and resulting in positive future returns on investment in the real estate market.