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The Print
2 days ago
- Business
- The Print
RBI rate cut to spur Kolkata housing demand by 5-10pc: CREDAI
'In FY2024-25, Kolkata saw the sale of around 17,389 residential units, marking a 16 per cent rise year-on-year,' he said. 'The lower interest rate regime would make home loans cheaper, driving up demand by at least 5 to 10 per cent in the coming months,' Sushil Mohta, CREDAI West Bengal President, told PTI. Kolkata, Jun 6 (PTI) The Reserve Bank of India's decision to cut the repo rate by 50 basis points to 5.5 per cent, along with a 100 basis points reduction in the cash reserve ratio (CRR), is set to boost housing demand in Kolkata's residential property market by 5-10 per cent, particularly in the affordable segment, real estate developers said on Friday. The stock of unsold affordable homes in the city dropped to 12,783 units in March 2025 from 16,069 units a year ago, reflecting sustained buyer interest despite relatively stable prices. 'Kolkata is largely an affordable housing market, and the rate cut will make home ownership more accessible while easing borrowing costs for developers. The CRR cut will further improve liquidity for both homebuyers and builders,' Mohta who is also Chairman of the Merlin Group added. Despite a moderate 10 per cent increase in residential prices over the past two years—lower than Bengaluru (29 per cent), NCR (20 per cent) and Mumbai (13.5 per cent)—Kolkata's price points are expected to remain steady going forward, given limited profit margins in the segment. Mahesh Agarwal, Managing Director of Purti Realty, echoed similar sentiments. 'The RBI's policy decision will sharply reduce borrowing costs and make credit more affordable. We expect demand to rise across all segments—affordable, mid-income and luxury. Lower EMIs will improve access to homeownership and spur greater participation in the real estate market,' he said. According to developers, the RBI's move comes at a crucial time when buyer sentiment is gradually strengthening, and the city's property market, while conservative in pricing, is poised for higher transaction volumes in the new financial year. Industry players believe that the rate cut signals renewed confidence in the broader economy and is likely to have a ripple effect on construction activity, employment generation, and allied sectors in Kolkata. Real estate's contribution to the state's GDP and employment is significant, which is why the state government had extended fiscal and policy incentives to boost sales during the COVID-19 pandemic. PTI BSM NN This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Time of India
27-04-2025
- Business
- Time of India
Kol sees dip in '24-25 unsold affordable home stock, rise in luxury inventory
Kolkata: In Kolkata, unsold affordable housing stock declined by 20%, while luxury stock increased by 96% in 2024-25, a research by real estate consultancy firm Anarock revealed. Tired of too many ads? go ad free now Flats priced below Rs 40 lakh are categorised as affordable, while apartments priced above Rs 1.5 crore are pegged as luxury. Homes priced between Rs 80 lakh and Rs 1.5 crore are considered premium. There was a decline in launches of homes in the affordable segment nationwide post-Covid, following a shift in customer preference towards larger homes. Thus, most of the projects launched in the past four years were in the premium and luxury segments. Kolkata is the only major Indian city that saw new launches in the affordable segment, although here too, the number of launches declined. According to Anarock Research , a total of 24,800 units were launched in the affordable housing segment in Kolkata between Jan 2021 and March 2025, comprising a 37% share of the 66,260 units added in the city across all budget segments during the period. The current stock of affordable housing in the city is 12,783 units as of March 2025, down from 16,069 units in March 2024. "The decline is primarily due to persistent demand and sales of affordable homes in Kolkata," said Anarock Group chairman Anuj Puri. In other major cities, affordable housing faced the sharpest pandemic fallout. Anarock data showed that affordable housing sales share plummeted from 38% in 2019 to 18% in 2024, while its supply share dropped from 40% to 16% in the same period. However, a 19% dip in unsold stock hints at sustained demand led by end-users. CREDAI West Bengal president Sushil Mohta said Kolkata remains an affordable segment market despite a shift in sales post-pandemic. This resulted in the growth of the mid-segment and premium segment.
