This is the ideal time to invest in Kolkata properties. For the first time in last seven years, the real estate industry observes a sharp price correction below invoice pricing. Currently most developers are offering exciting discounts on the effective price takes place during price negotiation.
Despite the average age and profile of the home-buyers are changing, the challenges associated with the home buying is still the same. Kolkata real estate market used to bank on the luxury housing sectors. Luxury real estate sector used to be the best-loved investment sector for the developers in Kolkata. Since the affordable housing sector has emerged as the key growth driver in the Indian economy, Kolkata developers are found trying the same shoe.
Affordable flats in Kolkata have turned out to be a steady contributor during these past watershed years of real estate business. Indian real estate market has poised for growth with the implementation of the Real Estate (Regulation and Development) Act, 2016 (RERA) and Goods and Service Tax (GST). While the average quoted price of the projects is still constant, along with the inflation and the actual rise in construction cost Kolkata properties is upward, properties are being offered with an effective discount rate of around 12% which makes the homes in Kolkata cheaper than ever.
Tollygunge has seen the biggest price drop on per sq ft basis. There is around 17% down turn in the overall circle rate of this area. Flats in Rajarhat and Newtown have also witnessed around 12% dip on the earlier circle rate. In high-street areas of Kolkata such as – Ballygunge, Rowdon Street, Park Street are running with the static high price, while B.T. Road, Salt Lake, Behala, Jessore Road, Madhyamgram and Narendrapur have observed a lower price correction.
Currently, most of the developers are offering GST waivers at 7.5-8% range. While investing in an ongoing project, buyers have to pay an additional 12% as GST charge. GST benefit offer by the builders has appeared to be a big relief for the potential property buyers in Kolkata.
“Discounts and freebies have been always the effective fillers when there is an increased disparity between the demand and supply. However, with the existing market offers to buy home in Kolkata can be the most affordable from the buyers’ perspective. With countless offers available in the market, it’s advisable to keep a pre-determined list of your residential requirements which will help you in making quick decision,”-said Mr Mahesh Somani, Chairman- National RERA Committee, National Association of Realtors India (NAR-INDIA).
–LNN (Liyans News Network)