KOLKATA SEES A SURGE IN PROPERTY PRICES IN MAJORITY LOCALITIES – REVEALS PROPINDEX

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Magicbricks, India’s No1 online real estate site releases PropIndex for the period October – December 2016. Magicbricks PropIndex is a tool which empowers property seekers and investors with detailed information on the movement of residential apartment prices and supply of properties in India. Though the real estate market in India saw an initial dip after the demonetisationdrive, the market now is finally stabilizing and catching back with its pre-demonetisation phase. The steep decline in prices during this time was restricted to certain geographies and budgets. In cities like Hyderabad, Greater Noida, Thane, Bangalore and Navi Mumbai, the prices went up by 0.5-2.5%, while places like Noida, Gurgaon and Ghaziabad experienced a price drop and prices were stagnant in the remaining six cities. 

In the Oct-Dec 2016 quarter, around half the localities had price increment averaging 2.23%. The balance half had an average price drop of 2.16%. The City Index witnessed a 0.2% increment over the last quarter after gaining 0.57% in the previous quarter. Except the Rs > 7,000 per sqft budget segment, rest of the segments witnessed either a mild price increase or price decrease over the last quarter. Analysis across 73 localities shows that on an average, RM properties were 3.8% more expensive than UC properties in this quarter. The average percentage price difference in the Under Construction (UC) versus Ready-to-Move-in (RM) properties remained more or less stagnant over the last quarter

 

Mr. Sudhir Pai, CEO Magicbricks says, “Our Data sciences and analytics team, enables us to give un-opinionated views about the real estate market trends. Insights from our recent PropIndex report show that while the average price of Ready-to-Move properties declined in 8 out of 14 cities this quarter, the impact was majorly seen in higher budget segments. What is interesting to note is that pan-India, Ready-to-Move properties commanded a 7% premium over Under Construction properties which in future will keep the prices of the new launches under check”

A growth in property prices (0.56%) was noted in this quarter in Kolkata. Consumer demand also rose along with property prices. Localities with high growth in prices are Prince Anwar Shah Road with 23.2% growth, followed by Ultadanga with 16.5%, Ballygunge Circular Road with 15.8%, Southern Avenue with 12.1%, and Gariahat with 10.9% growth.

Overall, the National Property Index has remained stagnant at the same level as the last quarter, with Ready to move properties witnessing a price fall of 0.4% and Under-Construction properties, a price rise by 0.8%. Considering the overall quarterly impact, south was the only region that experienced a price hike, while north on the other hand watched the prices fall. This year, the real estate sector saw both, the general prices dip and the RM Prices suffer due to the pressure of demonetization. At an average, western and northern India has done better than other regions with 9% price increment in their cities.

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