The year 2015 was not the greatest when it came to the residential real estate market. In fact the last three years have seen quite a few big names take hits when it came to real estate projects. Even popular locations for investment such as Mumbai and Delhi haven’t been able to shrug off this downturn but many analysts predict 2016 will lead to a recovery in the property market.
The major problem that the developers face is the time taken to sell off the apartments and properties. Though the duration of time taken to sell them off has grown over the past couple of years, this hasn’t turned out to be big problem since most projects take time to be completely constructed.
Ideally the turnaround time between the completion of a project and the sale of all the properties within them, should be as low as possible. This helps the real estate developer move on to the next project in the pipeline. According to analysts, a drop in the number of new launches has aided real estate companies in selling off their unsold inventory and has provided a chance for recovery of this industry in India.
The pick-up in the Indian real estate industry
For some cities in India, property prices have more or less remained stagnant for the last two years. In fact, industry analysts believe that the prices wouldn’t take on any corrections in the near future. A recently shared ‘Price Trend’ report by one of the largest real estate websites in India has evaluated eleven major cities in the country which included Kolkata, New Delhi, Mumbai, Bengaluru and Chennai, amongst others, where real estate prices are largely going to stay the same and that can only mean good news for property buyers.
Kolkata’s growth in the realty market has been due to a rise in office space transactions in 2015. Though most of these spaces have turned out to be large warehouses strewn across the city, the upturn may not be limited to just commercial properties in the near future.
While regular real estate industry giants are planning to provide more properties with greater facilities in the Garia and New Town regions, there are a few new players coming into the fray with their projects for Kolkata and its neighboring areas.
The New Town – Salt Lake belt is certainly one region which is seeing a large number of projects coming up thanks to the availability of space. This region is also one to look out for in the future for apartment and flat buyers, as both regions were selected in the initial list to set up ‘Smart Cities’.
While these regions didn’t make it into the final list, it does highlight the fact that the State Government is trying to ensure that properties being constructed, follow stricter norms while providing a sustainable future for the environment and hopefully also a strong show for the real estate market in Kolkata.