Keeping aside the high profile property market of Mumbai, Delhi- NCR and Bengaluru, Kolkata- the city of joy has emerged as a new hotspot for luxury realty. According to industry estimates, the city has witnessed a 20 percent rise in the sale of luxury properties. So a question arises here that a city which is known for its cost-effective real estate market can sooner get an entry towards investments in the luxury segment properties like other big cities?
According to real estate experts, in Kolkata, it has been seen that the cost-effective residences are sold as luxury properties and that’s why more and more people are attracted towards such property segments.
Giving more focus on the luxury realty segment, a local property dealer said that Kolkata is filled with riches and that’s why they prefer to move into fully developed societies rather than less developed one. According to him, south Kolkata is today has become a far better-performing market than south Mumbai, south Delhi or south Bengaluru. Many luxury projects have come up which mainly target the HNIs, and people from the Bengali, Marwari and Gujarati communities.
A look at Luxury segment in Kolkata
- As per latest estimates, Kolkata has 9,600 millionaires, which is more than in cities such as Bengaluru (7,700 millionaires), Hyderabad (9,000 millionaires), Pune (4,500 millionaires) and Chennai (6,600 millionaires).
- It was reported that Trump Tower when soft-launched in Kolkata crossed 50 percent booking within 40 days. The starting price of apartments is 3.75 crores.
- Forum group has launched Atmosphere at Topsia, ranging 12 crores to 16 crores.
- Even, Swedish fashion retailer Hennes & Mauritz AB (H&M) has bet on Kolkata with an 18,000-sq-ft retail outlet.
- Tata Housing is also developing a project at Alipore in Kolkata, with a price tag of 4 crores.
Are Luxury properties a safe bet?
However, an increase in the demand for luxury properties has raised a question whether they are in fast pace supply or not? According to real estate pundits, in recent times, Kolkata has witnessed diversified luxury buyers from Ranchi, Jamshedpur, Asansol, and Guwahati, Due to this, there is an oversupply in this segment. So, It will take no less than seven to eight years, for the luxury properties to get absorbed. Most of the luxury properties, other than Trump Tower, have had a long wait for buyers.