30% Descending New Launches In Kolkata Realty

This financial year shows a thumb-down to the real estate industry, Kolkata in particular. The Residential Property Sale in Kolkata has dropped down by 30% according to Knight Frank India. Report suggests that the upper volume of residential realty market last seen on the FY 2014, which has been on the skids during the couple of passed financial years. As per the report there were approximately 30000 new units that had been launched in 2014, which has been followed by couple of blue devils in FY 2015 and 16.

“The Kolkata residential market had remained relatively stable in the first half of 2016 (calendar year) on a year-on-year basis with expectations of improvement in the second half. However, the demonetization has changed the market scenario in the last quarter of the year and led developers and buyers alike to refrain from making any property-related decisions, “said Samantak Das, chief economist and national director of research at Knight Frank India. Junk of on hand inventories and repudiation in buying sentiment have been two standby shipwrecks in Kolkata realty sale and new project development. According to the global property consultant currently there are on hand inventories worth Rs. 2 crore and above in Kolkata, that need at least 24 months to get fully disposed of. This is quite an alarming indication for the Kolkata real estate market and this causes holdup in new project expansions as well.

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Residential launches fell 15% in the H2 of 2016 as touching the prior related phase. While North Kolkata has hurled the most horrible statistics in the last couple of years, south has a to some extent better score. Rajarhat has managed to be the favored location for the builders. Around 34% of the new developments in the H2 of 2016 were from South Kolkata -up from 27% than the previous year.

Builders like Siddha, Mani, Jain Group and Forum Group hardly announced any new projects, as most of them struggled to sell the luxury offerings they came up with in the past two years. “The flurry of legislation that has been in discussion has left us confused. There is GST and then RERA and so on. Everybody is trying to be on the right side of compliance officers. The market focus has shifted from bringing in newer products to selling off the older stock“said Rishi Jain, executive director of Jain Group.
_ By LNN (Liyans News Network)

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