Kolkata Real Estate Prices Drop The Least Among Major Cities

Residential property in Kolkata didnt rise as rapidly as those in Mumbai

, Bangalore and Delhi within the heady years of the boom. As costs plunge in these cities, the rates in these 2 metros arent falling the maximum amount say international property consultants as well as the native arms of Cushman and Wakefield and Jones Lang LaSalle Meghraj.

Reason that is balance between demand and provide between January and March when realty developers were reeling below the impact of credit crunch and slowing demand values of property in Kolkata dropped sharply across the country and also the price of recent property in Kolkata fell by up to 14 July from September last year whereas they fell by up to thirty fifth in Mumbai and up to pure gold in Bangalore. In Chennai, the decline wasnt as sharp - costs fell by up to a hundred and eightieth however solely in some neighborhoods.

According to consultancy, consumers are a lot of sensitive to style and functionality than costs thanks to that developers werent forced to supply hefty discounts like they were in different cities. Market like Mumbai and Delhi builders overestimated the demand for residential properties particularly within the high-income section or properties value Rs. one Crore and higher than. This cause an oversupply of such properties in these cities and costs crashed however that did not happen in Kolkata.

During the height of realty boom in year 2006 the costs of residential property in Kolkata was within the upscale Ballygunge space of South Kolkata were Rs. 3,200-5,500 per sq ft. Kolkata realty market has traditionally remained much more stable than those in different massive Indian cities. Even in 1996, when there was a serious correction in property costs across the country, costs of residential and commercial property in Kolkata fell solely by twenty sixth and thirty fifth respectively.

Theres not been abundant high-risk play in Kolkata properties that is another excuse why costs didnt go up quick. conjointly Kolkata based mostly developers werent as leveraged because the leaders within the business who were forced to chop costs sharply when things werent selling.

Typical debt-equity ratio of realty developers in Kolkata is 1:1 except for larger developers the ratio is way higher even 4:1 or 5:1 within the case of some firms. Investors confidence is pretty low, there's some demand from general users and costs are expected to stay stable for many elements of the year. tough times dont last long which is one hope that the $64000 estate market in Kolkata would forestall to in 2012.

With apprehensions of a slowdown and a coffee demand looming massive, the Kolkata realty market that had been witness to some exceptional deals and a buoyant residential market in 2011 could also be heading along a bumpy road this calendar year.

Market sources admit that whereas the general mood across the market is cautious, demand for homes and costs of property in Kolkata are probably to be less prone to an upward movement currently. The phantom of the 2008-09 economic downturn have came back to haunt developers and this would possibly trickle down, affecting the demand for flats. Investor mood is currently on the slide, and to an explicit extent, it conjointly reflects a coffee demand for flats. whereas costs are expected to stay stable in 2012, the year won't be pretty much as good as 2011. folks are a lot of cautious before investing.

by: lokeshmanu24

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