Impact Of Covid-19 On Kolkata Real Estate

The construction projects in Kolkata were at a halt in the first three months of the pandemic. The real estate market faced several challenges during this period. The anxiety level of developers increased since most projects remained under-developed in many states. On the other hand, the pandemic gave rise to specific trends that the real estate market can’t ignore.

Investing in real estate projects in Kolkata post-Covid-19 is the smartest option now. Kolkata at present holds a steady market flow with major investments, increase in job opportunities, and developments in infrastructure. There are going to be more upcoming projects in Kolkata. With the rise in demand for work from home, there is also an increase in home office spaces’ wants. Millennials prefer investing in personal homes rather than living in a shared apartment.

This virus outbreak brought a major fear of landlords asking the rent payers to leave their apartments. Thus, there are so many reasons behind the impact of Covid-19 on Kolkata real estate. Let us have a look at this blog below for a better understanding.

The Current Price Trend

South Kolkata is well known for offering extortionate rates on property. It’s the area where most upper and lower-middle-class people reside. Top places in the south offer prices between Rs 2400 to Rs 3500 per square and popular places in North Kolkata hold prices from Rs 3000 to Rs 8000 per square. As per reports, capital appreciation value increased from 7% to 19% over the years.

Thus, investing in residential flats in Kolkata is similar to investing in a gold mine. Even the upcoming projects in Kolkata will cost higher, and you can earn good rent from it. Undoubtedly, the city of joy will continue to face this price trend for the long run.

The Type Of Property

Kolkata’s real estate market provides studio apartments. As per investors and developers, they are mainly one, two, and three BHK flats. The whole middle-class segment prefers flats between 1 to 2 BHK, while the upper-middle class dwells in 3 BHK apartments.

The 3 BHK flats offer great amenities, space, and comfort. Currently, Kolkata real estate gives a free air conditioner and modular kitchen inclusive in the flat. Thus this city is following the footsteps of other major cities like Bangalore, Mumbai, and Chennai.

Property preference as per the city’s locality. Mostly, 2 BHK apartments have witnessed more takers since the Covid-19 pandemic. In the coming years, this property type will be more in demand.

More Affordable Prices

After the city performed poorly for two years consecutively, it got back in the absorption rate, making a remarkable growth in the current market’s absorption prices. The project launches from renowned real estate developers also contributed to the market growth in quarterly supply.

The pandemic gave rise to the demand for mid-segment and affordable homes. This ongoing trend will undoubtedly boost sales in real estate. Due to fluctuating equity markets, most real estate developers are investing in Kolkata’s property.

Thus, during the pandemic, investing in this city’s projects is a smart option. There will be a demand for luxury hotels, premium flats, and duplex flats with lower interest rates.

Ready To Move-in Flats

The real estate business in Kolkata is flourishing day by day. Residential properties are offering plenty of premium projects at affordable rates. Buyers can choose from a variety of several ready-to-move-in flats. Property developers in Kolkata face loss on sale margins with the unsold inventory.

These projects cause lower prices with less GST. With these things, the present is the perfect time to invest in Kolkata’s real estate. Most people are comfortable with ready flats since the waiting period is less and investing in these apartments involves less risk and immediate action.

The New Normal Period

The new normal is about forcing people to work from home rather than working from the office. With this, there is a rise in demand for home office spaces. Millennials living in shared apartments prefer to invest in personal homes; This is the ongoing trend post-pandemic.

Due to pressures from the landlord, most rent payers had to vacate their apartments immediately. As a result, the new normal helped boost property sales due to uncertainties in the finance sector, stock market, and many others. People are growing more interest in owning a house rather than staying in a rented place.

The middle and upper-income groups are going for homes with office space. In this new normal period, people are staying for a longer time in their houses. Thus, it depicts the value of Kolkata’s flats and adding revenue to its real estate business.

This time is excellent for NRIs to invest in properties with lower home loans and the rupee’s currency value declining against strong international currencies. Many overseas buyers invest in Kolkata’s real estate for moving-in with family members, investment needs, or rent to earn steady cash flow.

The Uncertainty Of Pandemic

Real estate developers are providing offers since the pandemic. This trend was valid earlier only during the festive season. If not for proper discounts, buyers can avail discounts via easy payment deals, complimentary car parking facilities, and other things. Therefore, it’s the perfect time to buy flats in Kolkata, with the industry looking forward to lower prices together with multiple options with location and budget.

Earlier, only under-construction projects witnessed lower prices. But at present, ready-to-move-in properties are also affordable. Undoubtedly, the pandemic left a positive impact on the real estate of Kolkata. The consequences of Covid-19 in the real estate business sector are unprecedented.

Final Thoughts

Real estate is one of India’s largest employment building sectors. With the State and Central Government’s intense support, Kolkata’s real estate and the developers are sure to witness a new rise. It is always the smartest option to go for investment in this sector. The overall property cost will lower dow. As a result, it will stimulate potential homebuyers. The real estate positive effects will reflect in this sector’s market in the near future.

If you are searching for any real estate properties in Kolkata, you will get the results via multiple service listing platforms. These platforms provide you with the best real estate projects as per your location, budget, need, etc.