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Rental Landscape

Rental Landscape

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KOLKATA RESIDENTIAL MARKET UPDATE OCTOBER-DECEMBER 2019

Market Sentiment INSITE 99acres ’s No.1 Property Portal

FROM CBO’S DESK

The year 2019 was testimony to nominal changes in top eight metros. the economic slowdown worsening The rental landscape had a merrier the already shaky housing sector tale to narrate with most metros of the country, which is still trying witnessing ‘asks’ going north between to come to terms with multiple two and four percent, YoY. policy reforms and funding crisis. Developers were seen resisting new The real estate industry awaits launches as the remnants of the Union Budget 2020-21 for pro-buyer NBFC crisis still trouble the sector at announcements to uplift housing large. The quarter Oct-Dec 2019 was demand and sales. no different, although it experienced certain green shoots of recovery in buyer sentiment following the announcement of certain financial measures by the Government. The creation of an Alternative Investment Fund (AIF) to help complete stalled residential projects and reduction in repo rates to make home loans cheaper top the list.

There were fewer residential launches in the last quarter of the year against Jul-Sep 2019. Responses and enquiries, too, experienced a Maneesh Upadhyaya downturn, QoQ. Average weighted Chief Business Officer property prices reported no or 99acres.com NATIONAL MARKET OUTLOOK INDICATORS

Capital Values Rental Values Supply

HOME BUYING SENTIMENT Homebuyers continued with their wait-and-watch strategy as the economy failed to pick-up the pace. Alternative Investment Funds worth Rs 25,000 crore cheered the stakeholders of stuck residential projects, but failed to push transactions in the short-term. Property sales plummeted by NCR 20 percent, QoQ, and stood at 55,000 units in Oct-Dec 2019.

PROPERTY PRICES Delhi NCR, Mumbai, Pune and Chennai did not witness any major deviations in average property ‘asks’, QoQ. Bangalore, AHMEDABAD Hyderabad, Kolkata and Ahmedabad witnessed prices going up by a marginal one percent. With an unsold stock of 6.55 lakh units across the top eight metro cities, any significant MUMBAI jump in prices is unlikely in the short-term. PUNE

HYDERABAD RENTAL LANDSCAPE Amid subdued home buying sentiment, the rental landscape registered notable growth, YoY. All metros, barring Delhi NCR and Pune, reported an annual uptick of three percent each in rental ‘asks’. While overweighing ready inventory restricted rental growth to two percent in Delhi NCR, the booming IT BANGALORE industry pushed rentals by four percent in Pune, YoY. CHENNAI

SUPPLY Muted sales and the ongoing NBFC crisis forced developers to refrain from launching new residential projects. Delhi NCR, Mumbai, Bangalore, Chennai and Kolkata reported a decline of 20-30 percent in new project additions, QoQ. An inventory 99acres of 4.58 lakh stalled units, too, encouraged developers to India’s No.1 Property Portal restrict new launches. * Capital values represent quarterly change * Rental values represent yearly change * Supply is basis properties listed on 99acres.com KOLKATA’S REALTY AT A GLANCE

Property Rental Prices ‘Asks’

Price movement in key micro-markets

Localities Oct-Dec 2019 QoQ % Change YoY % Change 3,820 - 4,760 0% 2% Demand Supply 3,400 - 4,080 1% 5% Baguihati 2,730 - 3,310 0% 3% 4,930 - 6,410 0% 0% 2,970 - 3,410 2% 0% 2,830 - 3,510 3% 1% * Property prices represent quarterly change * Rental ‘asks’ represent yearly change * Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com 3,440 - 4,370 1% 1% 2,440 - 2,780 2% 1% 4,080 - 5,410 3% 6% Salt Lake 6,000 - 7,060 4% 5%

* Average ‘ask’ rates have been calculated as per listings posted on 99acres.com

INSITE : Kolkata 7 99acres DEMAND & SUPPLY India’s No.1 Property Portal DYNAMICS 99ACRES’ 14% OUTLOOK 6%

18% Limited number of new launches and subdued sales kept the property prices reeling under pressure in Kolkata in Oct-Dec 2019. Developers’ focused on offloading the unsold inventory of nearly 40,000 housing units. Kolkata is yet to witness any positive trend in sales, resulting in a 48% negligible hike of a percent in average weighted property prices in the studied quarter against the previous one.

A handful of housing projects launched this quarter constituted only two percent share in the total project launches across metro cities. Out of around 2,000 new residential units added to the market, in West 38% 76% and EM Bypass Extension in East housed the majority by Category A builders, such as Salarpuria Sattva, Magnolia Infrastructure and Shriram Properties.

Steady housing demand in Rajarhat and New Town failed to boost property prices in the belts and reported either muted or declining ‘ask’ rates. However, these areas witnessed 4-5 percent spike in average rentals, YoY.

Noticeably, Majerhat Bridge is anticipated to be operational in the next six months. It is touted to Demand Supply propel housing demand in Joka, , Thakurpur and Batanagar. On the other hand, the planned Affordable Housing redevelopment of Tala Bridge – a crucial connector (Within Rs 40 lakh) Mid-income Housing to North Kolkata – is most likely to subdue the buying (Rs 40 lakh - Rs 1 crore) sentiment in micro-markets along BT Road such as Luxury Housing Dunlop, Khardah and Sodepur. Resultantly, possibilities (Rs 1 crore and above) of any improvement in property prices and demand look meek in the ensuing months.

* Graph depicts demand and supply of residential inventory across budget segments in the studied quarter INSITE : Kolkata 9 KEY HIGHLIGHTS

Rajarhat, New Town and other prime areas of South Kolkata, such as Joka, Rajpur, EM Bypass and Tollygunge, CAPITAL & remained the preferred locales among homebuyers and captured the maximum share of sale enquiries for properties priced up to Rs 60 lakh in Oct-Dec 2019. RENTAL However, the city reported restricted sales across budget segments.

Kolkata recorded a marginal hike of a percent in ‘ask’ rates, 8% QoQ. Majority of the demand inclined towards low-cost 2 BHK units priced up to Rs 25 lakh with an average unit 7% size of about 600-800 sq ft. An unmet supply of about 30 percent continued to be the prime reason behind dwindling 6% sales this quarter.

5% Residential hubs of North and South zones, such as Bara Nagar, , Joka, , and 4% 4% 4% 4% , saw an uptick in average capital ‘asks’ by four percent, each, QoQ. Salt Lake also witnessed a quarterly upsurge of four percent in property prices owing to increased office space absorption. Average property rates 2% in this area stand at Rs 6,200 per sq ft. The rising demand of co-living and co-working spaces in Salt Lake resulted in a 1% 1% growth of around eight percent in rental rates, YoY.

New 0% 0% Action Area I 0% The rental landscape clocked a two percent hike, YoY. Garia Tollygunge Rajarhat Salt Lake Kestopur Behala Baguihati Mukundapur from South topped the popularity charts owing to its robust connectivity to EM Bypass and -1% well-planned social infrastructure. It posted nine percent hike in average rental values in Oct-Dec 2019 against -2% -2% -2% Oct-Dec 2018. Other locales such as Patuli, Santoshpur, New Town Action Area III, Garia, Bhawanipore and Tollygunge also remained tenants’ favourites Capital and scored 6-8 percent growth in the -4% studied period. Rental

-8% * %change represents quarterly capital movement and yearly rental movement INSITE : Kolkata 11 99acres India’s No.1 Property Portal CONCLUDING NEW LAUNCHES 2% REMARKS KOLKATA With the majority of the demand lying within Rs 40 lakh, the affordable housing segment continues to dominate the housing sector in Kolkata. 4% About 10,000 stalled housing units, which are under redevelopment, are DELHI NCR anticipated to benefit from Government’s stress fund. If these units go 8% for sale in the ensuing quarters, the resale market may see a favourable CHENNAI trend. In addition, Housing Industry Regulatory Authority (WBHIRA) has ordered a refund in about 24 cases, out of the registered 29% 9% MUMBAI 150 cases, filed against the developers. The economic slowdown and AHMEDABAD subdued sales compelled the developers to realign their efforts towards offloading the unsold stock. The city is anticipated to witness a higher number of new launches around Bengal New Year in April 2020.

12% HYDERABAD

12% BANGALORE 24% BUDGET-WISE PUNE DEMAND SUPPLY The data depicts share of new launches across metro cities in the studied quarter

18% 16% 36% 36% 29% 29% 24% 40% 41% 46% 48% 49% 55% 50% 57% 37% 32% 52% 31% 76% 31% 51% 40% 40% Demand Supply 40% 37% 36% 38% 26% 28% Affordable Housing 35% 45% 44% 33% 31% Mid-income Housing 29% 18% -5% 24% 32% 17% 20% 19% 19% 15% 15% 14% Luxury Housing 15% 6% -6%

DELHI NCR MUMBAI BANGALORE PUNE CHENNAI HYDERABAD AHMEDABAD KOLKATA

INSITE : Kolkata 13 * Graph depicts demand and supply of residential inventory across budget segments in top eight metro cities in the studied quarter METHODOLOGY ANNEXURES The Insite Report by 99acres.com captures the quarterly capital trends and the annual rental analysis of residential apartments in key real estate markets – Delhi NCR, Mumbai Metropolitan Region (MMR), Bangalore, Pune, Chennai, Hyderabad, Kolkata and Ahmedabad. In order to assess the prevailing sentiment, the CAPITAL VALUES RENTAL VALUES report delves deep into demand and supply of properties across Locality Oct-Dec 2019 Locality Oct-Dec 2019 Locality Oct-Dec 2019 varied budget segments and occupancy stages. While demand

Action Area I 4900 3050 Action Area I 15 is a function of queries received, supply is based on property Action Area II 4720 Madurdaha 4400 Action Area III 16 listings posted on 99acres.com in Oct-Dec 2019. Action Area III 4600 Mahamayatala 4030 Alipore 33 D S PS 2400 Maheshtala 3450 Baguihati 12 BUY SELL RENT PROPERTY Alipore 13220 Mukundapur 5000 28 Bagha Jatin 4030 Naktala 4600 15 Baguihati 3210 Narayanpur 3550 Behala 14 FIND BEST OPTIONS TO Ballygunge 9650 3850 Bhawanipore 27 Bansdroni 3870 Nayabad 3400 Chinar Park 13 BUY, SELL, RENT PROPERTY Bara Nagar 3500 Netaji Nagar 3900 20 Barasat 2550 7050 Dum Dum 11 Barrackpore 2950 3650 Garia 14 Price trends and obile pp property advice Behala 3900 2500 Gariahat 27 on ndroid platorm Bhawanipore 10000 Park Circus 7300 19 and iS 3200 Patuli 5050 Jadavpur 18 Brahmapur 3290 Picnic Garden 4400 22 enuine Chinar Park 4470 Purbalok 4600 Joka 9 ver lakh listings ith photographs 3700 Rajarhat 4310 13 property listings Dum Dum 3300 Rajpur 2750 Kalikapur 15 Dunlop 3950 Sakher Bazar 3650 Kasba 18 4620 Salt Lake 6200 Kestopur 11 Garia 4080 Santoshpur 4500 20 Haltu 4420 Sodepur 3200 Lake Town 17 More than Jadavpur 5300 Sonarpur 3150 Madhyamgram 11 1.7 lakh Jodhpur Park 7600 Tagore Park 4960 Maheshtala 11 projects Joka 3600 4200 Mukundapur 18 Kaikhali 4040 3140 Naktala 15 Kalikapur 4730 Tollygunge 5730 Narendrapur 13 3900 6900 New Alipore 21 7850 7000 New Garia 17 Kasba 5380 Uttarpara 3090 Park Circus 20 Kestopur 3350 Rajarhat 14 CONTACT US Khardah 2830 Salt Lake 20 0120 4879400 Lake Gardens 6040 Santoshpur 15 Monday - Friday Lake Town 4900 Tollygunge 19 9:30 AM to 6:30 PM IST *All prices are per sq ft rates Email: [email protected] 15 CONTACT US 9 Monday - Friday 9 to P S mail content99acres.com

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