Saturday, 21 May, 2022
HomeIndiaApartment sales are booming in Kolkata but there are no takers for...

Apartment sales are booming in Kolkata but there are no takers for office space

While Indian cities grapple with a slump in home sales and a booming office market, Kolkata faces the exact opposite.

Text Size:

Kolkata: While Indian cities grapple with a slump in home sales and a booming office market, Kolkata, one of the country’s four metropolises, faces the exact opposite.

Major developers in Kolkata say their focus on affordable apartments has helped prevent the price drops seen in other cities, though an unviable build up of commercial space has led to a plunge in rents and sales.

“The real estate market in Kolkata is only driven by actual users rather than investors,” said Harsh Neotia, chairman of developer Ambuja Neotia Group. While urban migration sustains demand for relatively cheap flats, in the commercial market “a huge capacity got built on the expectation of some boom in the IT and IT-enabled businesses,” which hasn’t played out, he said.

About 43% of offices in Kolkata, home to Asia’s second-largest cigarette maker by market value and the world’s biggest coal producer, were lying vacant in the second half of 2019, the highest among major Indian cities, according to data from Knight Frank. Kolkata saw home prices rise 3%, bucking a trend of falling costs in places like Mumbai and Chennai.

Sales of residential units will further pick up over the next 12-18 months, according to research firm JLL India. Sushil Mohta, chairman of the Merlin Group, said about 90% demand in Kolkata is for homes priced at between 3 million rupees to 7.5 million rupees.

For office space, however, rents haven’t increased from five years ago, said Neotia. -Bloomberg


Also read: Acquiring Singur land doomed the Left in Bengal. Now, farmers want to get rid of it again


 

Subscribe to our channels on YouTube & Telegram

Why news media is in crisis & How you can fix it

India needs free, fair, non-hyphenated and questioning journalism even more as it faces multiple crises.

But the news media is in a crisis of its own. There have been brutal layoffs and pay-cuts. The best of journalism is shrinking, yielding to crude prime-time spectacle.

ThePrint has the finest young reporters, columnists and editors working for it. Sustaining journalism of this quality needs smart and thinking people like you to pay for it. Whether you live in India or overseas, you can do it here.

Support Our Journalism

Most Popular

×