Festival Season Drives Growth in Kolkata’s Residential and Commercial Real Estate Sectors

Kolkata, 24th October 2024: After a brief lull in the real estate sector due to the withdrawal of temporary relief measures on stamp duty by the state government in July, Kolkata is witnessing a significant rise in both residential and office space registrations and sales. This recovery comes just in time for the festival season, signaling renewed buyer interest and market confidence.

According to a recent report by Knight Frank, the sale of residential units in Kolkata and its suburbs in August 2024 reached levels not seen in the past two years. The data revealed that 5,410 flats were sold in August, marking a sharp 54% increase from July 2024, when only 3,506 flats were sold. This also reflects a 50% year-on-year growth compared to August 2023. By comparison, the market was not as buoyant during the festive season last year, where the highest number of flats sold peaked at 6,788 units in October 2022.

While interest rates on home loans remain high due to the Reserve Bank of India’s decision to keep the repo rate unchanged, builders are optimistic about the market’s strengthening demand. The surge in sales ahead of the festive season highlights the resilience of Kolkata’s real estate sector.

In parallel, the commercial real estate sector has also experienced significant growth. According to the latest report by CBRE South Asia, Kolkata’s office space market saw a gross absorption of 1.2 million square feet from January to September 2024, compared to 1 million square feet during the same period last year. This increase contributed to a record high of 53.8 million square feet of gross office space absorption across nine key cities in India, including Bengaluru, Mumbai, and Delhi-NCR. The demand for office spaces in Kolkata was driven by flexible space operators (28%), FMCG (18%), and media & marketing sectors (16%).

Mr. B.P. Singh Roy, COO of Keventer Realty, shared his insights on the commercial property boom, stating, “As Kolkata’s commercial property market booms, businesses are strategically tapping into tax incentives to bolster their financial strategies. This synergy of fiscal prudence and real estate expertise not only drives corporate expansion but also contributes to regional economic prosperity.”

Further adding to the positive outlook, Ms. Priyanka Datta Roy, Marketing Manager at PS Group Realty, commented, “The rising demand for managed office spaces is transforming how corporates and enterprises approach their workplace strategies.”