Kolkata's Residential Market Surges 16% in 2024, Office Rentals Climb 7%
Kolkata’s residential real estate market has experienced a significant 16% year-on-year surge in sales in 2024, with office rentals also rising by 7% according to a report by Knight Frank.
Kolkata Real EstateResidential SalesOffice RentalsKnight FrankProperty MarketReal Estate NewsJan 07, 2025
This significant uptick is a clear indication of the city's economic resilience and increasing attractiveness to homebuyers.
The real estate sector, particularly the residential segment, has been a key driver of the local economy, supported by favorable government policies and infrastructure development.
According to a recent report by Knight Frank, a leading global real estate consultancy, the surge in residential sales is attributed to a combination of factors, including affordable housing schemes, improved mortgage options, and the city's overall economic stability.
The report also highlights that the demand for residential properties has been particularly strong in the outskirts of the city, where new developments and better connectivity have made these areas more appealing to young families and first-time buyers.
of Knight Frank
Knight Frank is a renowned international property consultancy, known for its comprehensive research and insights into the global real estate market.
With a presence in over 60 countries, Knight Frank provides a wide range of services, from strategic advisory to transactional support, helping clients navigate the complexities of the real estate landscape.
Their annual reports are highly regarded in the industry, offering valuable data and analysis that guide investment decisions.
Office Rental Market
While the residential market has been booming, the office rental market has also shown positive trends.
Knight Frank's report indicates a 7% increase in office rentals in Kolkata over the past year.
This growth can be attributed to the city's emerging status as a preferred destination for IT and BPO companies, which have been expanding their operations in the region.
The availability of skilled labor and a lower cost of living compared to metropolitan cities like Mumbai and Delhi have made Kolkata an attractive option for these firms.
The rise in office rentals has been particularly noticeable in areas like Salt Lake and Rajarhat, where new office complexes and commercial spaces have been developed.
These areas have seen a significant influx of corporate tenants, contributing to the overall economic growth of the city.
Factors Driving the Market
Several factors have contributed to the robust performance of Kolkata's real estate market.
Firstly, the government's push for affordable housing has had a significant impact.
Initiatives such as the Pradhan Mantri Awas Yojana (PMAY) have provided much-needed financial support to first-time homebuyers, boosting demand in the mid-tier and affordable segments of the market.
Secondly, the improvement in infrastructure, including the expansion of the metro rail network and the development of new roads and flyovers, has enhanced connectivity and made it easier for residents to commute.
This has, in turn, increased the desirability of properties in previously underserved areas.
Future Outlook
Looking ahead, the real estate market in Kolkata is expected to continue its positive trajectory.
The combination of favorable government policies, ongoing infrastructure projects, and the city's economic growth is likely to sustain the demand for both residential and commercial properties.
However, the market may face challenges such as a potential oversupply in certain areas and the need for continued investment in infrastructure to support the growing population.
Conclusion
Kolkata's real estate market has demonstrated remarkable resilience and growth in 2024, with both the residential and office segments experiencing significant gains.
The city's economic stability, government support, and infrastructure improvements have played a crucial role in this success.
As the market continues to evolve, investors and developers can look forward to a promising future in Kolkata's real estate sector.
Frequently Asked Questions
What is the percentage increase in residential sales in Kolkata in 2024?
Kolkata's residential sales have surged by 16% in 2024, according to a report by Knight Frank.
How much has office rental increased in Kolkata in 2024?
Office rentals in Kolkata have risen by 7% in 2024, as per the Knight Frank report.
What factors are driving the growth in Kolkata's real estate market?
The growth is driven by government policies, affordable housing schemes, improved infrastructure, and the city's economic stability.
Which areas in Kolkata are seeing the highest demand for residential properties?
The outskirts of Kolkata, particularly areas with new developments and better connectivity, are witnessing the highest demand for residential properties.
What is the future outlook for Kolkata's real estate market?
The market is expected to continue its positive trajectory, driven by ongoing infrastructure projects and economic growth, although challenges like potential oversupply may arise.
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