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Post demonetization, Kolkata’s real estate market remains stable: Magicbricks PropIndex, Jan-March, 2017

•55% of localities in Kolkata witness price increase

•Prices stablae for both Ready-to-move-in and Under Construction properties

Kolkata, May 16, 2017: Magicbricks’ PropIndex for Jan-March 2017, the most awaited real estate quarterly report, revealed that the effect of demonetization on Kolkata’s real estate market has been minimal as prices have remained stable for the last two years but overall the market continue to suffer due to lack of transactions.

The flagship report of Magicbricks, India’s No.1 property portal, stated that the market remained stable because there was a significant portion of properties in the secondary market and the overall lower prices in the city have restricted the amount of black money in the apartment segment.

The City Index for Kolkata reflects price movement across 73 prominent localities. These localities were chosen using the twin criterion of their share in the consumer preference as well as share of actively traded properties. Over 55% of these localities experienced a price increase and the balance 45% of the localities witnessed a drop in prices, which led to no performance in the City Index for the Jan-Mar 2017 quarter.

The latest PropIndex reported that since June 2016, the Kolkata market have witnessed stable prices for both under construction and ready- to-move-in segments. While 40% of the localities witnessed a price increment of 3% on an average, another 30% localities witnessed prices falling by 3.3% on an average.

Mr. Sudhir Pai, CEO Magicbricks says, “The latest PropIndex report for Kolkata city reveals that the impact of demonetization was minimal in the Eastern metropolis. Price movement across all budget segments was range-bound in the Jan-Mar 2017 quarter. The affordable Rs 3,000-4,000 per sq ft price range, which accounts for almost 50% of consumer preference and of actively traded properties, was stable in the quarter. As the real estate sector goes through a transitional phase with the introduction of RERA, GST, Benami Act and REITs, a tool like PropIndex becomes a key indicator that will help consumers get a fair idea about the changing times.”

Analysis across 73 localities shows that Ready-to-move-in (RM) properties with an average price of Rs 4,458 per sq ft were more expensive than the Under Construction (UC) properties with an average price of Rs 4,306 per sq ft. The average price of both RM and UC properties witnessed very marginal price decline during the Jan-Mar 2017 quarter. While the average price of RM properties fell by 0.4% that of UC properties fell by 0.1% in the last quarter. Overall, more localities (60%) witnessed a decline in price of Ready-to-Move-in properties as compared to Under Construction properties (50%).

The overall outlook for the coming three months remains stable without any major price movement. This means the transaction activity is unlikely to pick-up in the near term. However, among the high consumer preference localities, the price sentiment for Rajarhat area is positive while Newtown locality is expected to have stagnant price levels

About Magicbricks: is India’s No.1 property site. With monthly traffic exceeding 12 million visits and with an active base of over 14 lakh+ property listings, Magicbricks provides the largest platform for buyers and sellers of property to connect with each other in a clear, transparent manner. With this in mind, Magicbricks has innovated several product features, content and research services, which have helped us, build the largest audience pool.