Kolkata is a city that has seen significant growth in its real estate market over the past few years, with many new developments and projects coming up. As a result, real estate prices in the city have been on the rise.
The exact prices can vary depending on the location, type of property, and other factors. However, in general, the prices of residential properties in Kolkata range from around INR 2,500 to 10,000 per square foot. This means that a 1,000 square foot apartment could cost anywhere from INR 25 lakhs to 1 crore or more.
Commercial properties such as office spaces and shops also have varying prices depending on their location and other factors. In general, commercial properties in prime locations such as Park Street, Camac Street, and Salt Lake City can be quite expensive.
It’s important to note that real estate prices are subject to change based on various economic and market factors, so it’s always a good idea to consult with a real estate expert before making any investments.
Why Is the Real Estate Price High In Kolkata?
After researching the trend and price value of the real estate in Kolkata, you can expect a 10 to 15% flow in apartment prices within 6 months. From last year, Kolkata real estate prices have risen by 12%.
Plus, the last few years, the fuel cost has risen multiple times. It impacts more than 20% of builders. As a result, their margin rate drastically changed.
Real estate investment in Kolkata varies on the real estate price. As we have researched, the world economy and the country’s economy have taken part to increase the real estate price value in Kolkata.
Reasons For The Price Hike In The Property Sector
As we see Kolkata’s real estate price has increased. Now, you may want to know the reason behind this. The following part will show you the expected reasons for enhancing the price of real estate property in Kolkata.
There are several factors that can contribute to a hike in property prices in the real estate sector. They are:
1. Metropolitan City, Kolkata
In the last year, 2.8% of the price of real estate has risen in West Bengal. Kolkata is running multiple metro projects. People are always looking for a place where they can connect everything easily.
Salt Lake, Park Circus, EM Bypass, North Kolkata, and East Kolkata are the most demanding places where people want to invest money on real estate property. However, Madhyamgram and Barasat are also highly demanding places.
On the other hand, location is another matter. Properties in desirable locations with good access to transportation, schools, and amenities tend to be more expensive.
2. Economic Growth
Since the Supply and demand of the real estate business have grown up. When demand for property exceeds the available supply, prices tend to increase. This can happen due to a growing population, low interest rates, or limited new construction.
A strong economy with low unemployment rates and rising incomes can lead to increased demand for property, which can drive up prices.
3. Inflation Rate
Inflation can cause the cost of materials and labor to increase, leading to higher construction costs and ultimately higher property prices.
When the cost of raw materials like steel, cement, and lumber rises, it becomes more expensive to build new properties, leading to higher construction costs. As a result, developers may increase the selling price of new properties to offset these higher costs, which can in turn lead to higher property prices overall.
Inflation can also lead to higher interest rates, which can make it more expensive for borrowers to finance the purchase of a property. This can reduce demand for property, which can put downward pressure on prices. However, if inflation is high enough, it may outweigh the impact of higher interest rates, leading to higher property prices overall.
According to Forbes, the Inflation rate in India is:
4. Government Policies
Government policies such as tax incentives, subsidies, or restrictions on foreign ownership can also affect property prices. In that case, you can visit Srijan Realty to get the exact solution and current data.
Speculative investors may buy up properties in the hope of selling them at a higher price in the future, which can drive up prices in certain areas.
It’s important to note that the exact reasons for a hike in property prices can vary depending on the local real estate market and economic conditions.
Apart from these factors, there are many more points that can impact real estate properties. It can be concluded that Kolkata is the most leading metropolitan city in India. For the health sector, education, real estate properties, and the corporate sector, Kolkata offers you more than you want.
From the Royal Ganges to central Kolkata commercial properties, Srijan Realty has a lot of options for you.