Why the sale of low-cost residential property in Kolkata is dropping?

There is a consistent demand for the affordable real estate property in Kolkata, however, throughout the entire year, the sale of this segment was not been satisfactory. The sales figure dropped significantly by 15%. and about 37,000 to 40,000 units remained unsold. Out of this unsold inventory, the major contributor was the low priced houses. Almost all the major players of the real estate market launched new projects in and around Kolkata with an area of 500-700 square feets, however; sadly most of them remained unsold.

To make the situation better builders are coming up with some very unique ideas like-

• Easy down payment options
• Easy financing

There several new housing schemes which are launched and the prominent among these is Amrit Awas Yojana. Let us explore some more details about this scheme-

Amrit Awas and Abasan

Amrit Awas and Abasan are launched by the BGA realtors who aim to provide affordable houses in Kolkata. There are 154 units planned for Amrit Awas and 240 units for Abasan. Both these projects are coming up in Sonarpur and under this project if the customer pays the full cost of the project apart from the extra delivery charges within one month of the booking date, then the BGA realtor would continue paying 8.5% interest per annum to the customer. This new project by the BGA realtor will surely help the residential projects in Kolkata to grow.

During the last six months, there have been multiple project launches in Kolkata which were priced at Rs.30 lakhs and most of the projects are restricted in the southern extension of the city namely Garia, Narenderpur and other parts of the EM bypass. Some of the projects are also coming up in the northern part of the city like Dum Dum,Sodepur, BT road and Jessore road. Apart from these Rajarhat has been the popular destination for the real estate developers. The south, eastern and central Kolkata saw marginal development in the past year.

The city of Kolkata and the peripheral areas has witnessed several new lunches in the affordable segment in the year 2016.The residential property in Kolkata  were lunched in the size of 500-700 square feet and the price of the units was between Rs.2,500 and Rs. 3,000 per square feet. Most of the builders have speculative during the year; however, the situation will soon be better.

Real Estate in metropolitan cities: an outlook

Indian real estate always being a right destination to invest, offers a wide variety of options to buyers from all over the world. For developers, good locations with decent services are the key elements that every buyer seeks. This can help them reap impressive benefits once they are able to build properties with thorough research and updates about the current situation of market value.

Selecting and finalizing a property proves out to be a daunting task for most of the buyers, but the city that you have selected to invest in should be based on the economic drivers. A major catalyst in driving the real estate demand and purchase system comes from the affordability of any property.

Infrastructure also plays an important role in defining the structure of a city. For example, the major metropolitan cities such as Noida, Gurgaon, Mumbai and Bangalore are all attracting buyers because of their sprawling houses, villas and penthouses. This acts as a window to buyers so that they can get the first look of future possibilities in real estate.  It is by far obvious that the Residential property in India has been driving high on growth and is also expected to race ahead amongst all the other type of properties.

It is quite evident that Mumbai has been falling a little off the market due to the demands coming from cities such as Bangalore and Pune. Apart from international brands and reliable realtors, there are several other factors defining the current situation of real estate in the metro cities. Foreign investors have made their way into the Indian market and are now eyeing the most exclusive properties.  Therefore, to keep these types of buyers in loop, developers have been investing quite a lot of time and money to build properties that are best suitable for every kind of investors.

Urbanization has proved to be one of the biggest growth factors among realtors. People from different isolated areas are finding their way into the hustle bustle of big cities. As these successful cities are attracting more number of people, the cost of urban properties would continue to be on a rise. In order to use their present space efficiently, builders are using every ounce of it to their best advantage.

Talking about the next ten years of urban real estate, it would not be wrong to say that there will be a fierce competition between all of these metro cities. In order to make properties commercially as well as residentially viable, builders are going to use latest techniques and tactics to stay ahead in the competition.

One of the trends that has been picking up pace in the cities is that people are now looking to buy property with airy interiors. This means that they are eyeing areas with more open areas and connectivity with the other central areas of a city. Therefore, it is quite evident that this paradigm shift in the Realestate in India would be responsible for a new and completely redefined properties.  

A Sneak Peek into the Real Estate Sector of 2020

Although we are still in 2016, talking about the trends and scenario of real estate in the next five years will shed some light into the anticipated property in India. There are also various consultant firms and many research reports that have already been published quoting the most predictable developments of real estate sector. It has also been said that while there is a huge investment in this sector, approaching years are going to more fruitful than ever. After other sub-sectors such as agriculture and education, real estate is considered to be largest in the country.

Earlier this year, the Finance Minister of India proposed to extend the construction completion deadline from 3 to 5 years for getting tax breaks under Section 24. This benefit also came along with some of the terms and conditions for buyers. However, it would not be wrong to say that the government is also trying to bring about a change in the situation of real estate business in India.

Moving ahead, Smart City initiative, which has also been adopted by several cities is growing with a rapid pace and requires more development as of now. Expected to make a turnaround in 2016, the Indian real estate sector has a lot to offer. As quoted above, government initiatives will give a push to this business all across the country and prove out to be a tough competitor for foreign real estate projects.

A few of the projects such as Housing for All and AMRUT (Atal Mission for Rejuvenation and Urban Transformation) are also going to affect the economy in a better way. Also, the introduction of REITs (real estate investment trust) is going to make sure that there is adequate transparency in the projects that have been commenced recently.

Further to this development, the Reserve Bank of India (RBI) has slashed the rates of real estate significantly and the continuation of such inventions is going to affect the other half of 2016. When we talk about housing options that are affordable for majority of people, REDCO Haryana is setting an example for builders in different sectors.

The Smart City proposal was first established in Europe as part of the development process for citizens of the country. After that, this project has found a way to be introduced in other countries as well. Combining buyer’s demand of affordable housing with the rapid infrastructure and commercial properties, it became imperative for developers to look into the option of Smart City project.

With the beginning of all of the above mentioned initiatives and projects, realestate in India is going to look quite different by the year 2020. If builders are now opting for quality projects, then their life span is of almost 80 years. This means that if high-end quality projects are built within these five years, there would be a high demand of such properties in coming years. Thus, it proves that longevity of a building very much decides the fate of it and in terms of realestate property’s health is responsible for its resale value.