Kolkata Real Estate: Steady Growth, End-User Driven Market
By Business Desk
Kolkata’s real estate market shows the slowest home price growth among major Indian cities, highlighting its strength as an end-user driven market with enduring affordability.
Kolkata’s real estate market exhibits the weakest home price growth among 11 major Indian cities over a seven-year period, firmly establishing it as an end-user driven market distinct from speculative investment hubs. This slow but steady appreciation sets it apart in the national landscape.
A recent Anarock survey highlighted apartment prices in Kolkata increasing by 45 percent, a figure significantly outpaced by Noida and Gurgaon, where property values more than doubled during the same timeframe. This stark contrast underscores a fundamental difference in market dynamics.
Kolkata’s Enduring Affordability Amidst Shifting Values
Kolkata maintains its position as India’s most affordable city for housing, with average prices reaching ₹6,345 per square foot in Q2FY27, an increase from ₹4,385 per square foot in 2019. Meanwhile, Hyderabad, once the most affordable, has seen its prices nearly double due to robust demand from the IT and GCC sectors, while Mumbai now surpasses Delhi as the most expensive city at ₹29,270 per square foot.
Economic Undercurrents and Developer Perspectives
While slow growth in Kolkata points away from speculative activity, developers offer additional insights. Sushil Mohta of Merlin Group attributes this trend to weak economic activity and a lack of industrial growth in Bengal, factors that directly impede job creation and, consequently, housing demand.
The Anarock survey also observed a divergent pattern in rental yields across various markets. Despite substantial capital value increases since 2019, cities like Hyderabad and Bengaluru have experienced improved rental yields, indicating strong corresponding rental growth not universally mirrored.
This analysis confirms Kolkata’s unique market position, characterized by stability rather than rapid appreciation, largely catering to genuine end-users. The city’s real estate trajectory remains intrinsically linked to broader economic development and job market expansion, setting it apart from more volatile or industry-driven urban centers.