Property Investment in Kolkata: All You Need To Know

Have you ever thought of investing in real estate properties in Kolkata? Kolkata is one of the most reasonably-priced property markets in the country, and this ancient city also offers great potential for yield. This guide will assist with every detail regarding property investment in Kolkata, including factors, benefits, prime locations, and risks for a potential real estate investor looking to make a great investment choice.

What is Property Investment in Kolkata?

With continuous commercial development and industrial growth, Kolkata is always on the top-most demand list for property investments. This beautiful city offers a wide range of properties within the reach of maximum investors. The average price rate for the properties in this city is around Rs. 6,000 per sq ft.

Factors to Consider Before Investing in Kolkata Real Estate

Economic Growth

With the presence of numerous renowned industries such as Tech Mahindra, Genpact, HSBC, Concentrix, Ericsson-Worldwide, KPMG, PwC, Capgemini, Teleperformance, EY and many more, the economic height is on the top.

Infrastructure

So many major roadways and other projects are being developed in Kolkata to enhance the city's infrastructure. These government initiatives include the Bharatmala Pariyojana, the East-West Metro Tunnel ( underwater river tunnel of Kolkata Metro), the World Trade Centre in Bidhannagar and much more.

Affordability

Kolkata is the second most affordable city in India. The Knight Frank affordability index, which measures the EMI-to-household income ratio, ranks Kolkata second after Ahmedabad. This data suggests that, on average, a home-buyer in Kolkata spends about 25% of their family income on home loans, which is below the 'comfortable affordability' threshold set at 50%. A single person's living cost in Kolkata is 22% less expensive than in Bengaluru.

Rental Yield

As the demand for real estate properties increases in Kolkata, the rental yield is also heightened. Some key localities like EM Bypass, Joka, BT Road, and Saltlake have 9.5%, 4.7%, 2.3% and 7.8% rental yield, respectively.

Potential for Growth

Property investment in Kolkata offers a stunning opportunity for development and interest as the real estate business in Kolkata has risen to approximately 31% in the last 3 years. Similarly, the property rates have elevated by approximately 87% over the past five years.

Demand of the Location

Kolkata is the well-known centre of the Kolkata Metropolitan Region and the country's de facto cultural capital. The real estate properties in developed locations such as Rajarhat, Newtown and others are more prone to price escalation. The property growth rate in Rajarhat has been 24% in the past 5 years, while in Newtown, it has been approximately 54% over the past five years.

RERA

The Real Estate Regulatory Authority Act has been in operation since 2016, and its primary goal is to offer transparency to real estate investors and buyers in India. Check for your brokers and real estate builders in Kolkata.

Builder Credibility

While planning the property investment, the authenticity of the builder is crucial for investors to know at the RERA website. Well-known registered developers and builders include PS Group, Shristi Infrastructure, Merlin Group, Ambey Group and many others.

Steps To Invest in a Property in Kolkata

Step 1: Conduct a market survey and finalise your investment budget.

Go for proper market research and fix the investment budget. One should take adequate time and investigate.

Step 2: Shortlist a few properties based on your requirements

After the market survey, a list of the properties that have suited the requirements of the investors is made.

Step 3: Plan a field visit to the properties to assess their various aspects, such as infrastructure, transportation facilities, hospital proximity, etc.

Real estate investors should never trust just the pictures of the properties and the words of sellers. Instead, they should opt for field visits to check the accessibility to daily amenities.

Step 4: Do a background check and check all the property documents.

One should thoroughly check the property and its documents. Additionally, check the background of the broker/builder on RERA.

Step 5: Prepare all the necessary documents, such as the sale deed, agreement, etc., to purchase the property.

Prepare all the necessary documents, such as the agreement for the property investment, sale deed and others, before finalising the property.

Step 6: Go ahead with paying for the property. Remember to pay the stamp duty and registration charges as well.

Now, finalise and pay the amount along with the stamp duty amount and registration charges so that the property is registered to your name.

Benefits of Property Investment in Kolkata

Ease of Daily Amenities

Kolkata is the 'City of Joy.' Thus, this city makes your everyday life joyous by providing easy access to day-to-day amenities without much hassle. This city is home to several renowned educational institutes such as St. Xavier's, Presidency University, IIM Kolkata, and many more. There are also several renowned hospitals, shopping malls, and restaurants like AMRI Hospital, Apollo Multispeciality Hospitals, Quest Mall, Acropolis Mall, South City, and Axis Mall.

Diverse Range of Properties

Kolkata offers investors a wide range of options for property investment, including budget-friendly and luxurious properties! Real estate investors can choose from options like Chitrakut Heights Phase 2, Ascon Era, Siddha Eden Lake Ville, DTC Sojon and many more.

Employment Opportunities

This city is also home to several IT companies and other industrial sectors, such as Tata Consultancy Services, Cognizant Technology Solutions, IBM, Capgemini, Amazon, Tech Mahindra, Genpact, Concentrix and many others.

Amazing Rental Returns

Kolkata offers comparatively low rental costs for properties. With a high rental yield on real estate properties of approximately 6.7%, the rent for 1BHK apartments in Kolkata in prime localities starts at around Rs 10,000.

Connectivity

Talking about connectivity in Kolkata, NH-2, NH-6, NH-34 and others, connect it to several other places such as Mumbai, Dhule, Dalkhola and more. Some state flyovers in Kolkata that connect the city end-to-end include MAA Flyover, VIP Flyover and EM Bypass. The city is also well connected by public transport such as buses, metro, autos, and e-rickshaws.

Top Locations for Real Estate Property Investment in Kolkata

Ballygunge

Ballygunge is a residential locality in South Kolkata that is regarded as one of the most affluent neighbourhoods in the city. This area offers nearby daily amenities such as Quest Mall, INOX, Birla Mandir, Modern High School, Akash Institute, and so much more! The average price rate for the properties here is approximately Rs. 14,100 sq ft. Some top developers in this location include Siddha Group, Bhawani Group, Ambey Group and many others.

New Alipore

New Alipore is an upscale locality in South Kolkata. It is close to major malls (South City Mall), metro stations (Tollygunge Metro), and schools (Saini International and Sri Sri Academy), making daily life convenient. The average price rate for the properties here is approximately Rs. 9,999 sq ft. Some well-known real estate developers in this area are Merlin Group, Srijan Realty, PS Group, and many others.

New Town

New Town is a gorgeous new suburb in Kolkata. It offers several top-commercial buildings and business parks, such as Synthesis Business Park, DLF 2 IT Park, TCS Gitanjali Park and many others. This locality also offers numerous amenities like Child Care Center, OHIO Hospital and more. The average price rate for the properties here is approximately Rs. 6,500 sq ft. Some of the top developers in this location include Shristi Infrastructure, Skyscraper Realtech Properties LLP, Merlin Group, and many others.

Joka

Joka is Kolkata's fastest-developing locality. Some of the top amenities offered by this location include Techno India Group, Netaji Subway Station, Humanity Hospital, Children Academy and much more. The average price rate for the properties here is approximately Rs. 5,200 sq ft. Some of the top developers in this area include DTC Developer, Godrej Properties, Realmark Group, Purti Realty and many others.

Salt Lake

Salt Lake is a well-known planned Satellite locality of Kolkata and a key IT hub of the city. It is also one of the first well-planned locations in Kolkata, which Dobrivoje Toskovic planned. The average price rate for the properties here is approximately Rs. 8,000 sq ft. Some well-known real estate developers in this area include Merlin Group, PS Group, Ideal Group, Magnolia Infrastructure and many others.

Conclusion

What is property investment in Kolkata?

Kolkata has a well-built market for real estate property investors, and the demand for the properties continuously increases. The average price rate for the properties in this city is around Rs. 3,500 - Rs. 15,200 per sq ft.

Property investment in Kolkata: Factors to consider

• Economic growth
• Infrastructure
• Affordability
• Rental yield
• Potential for growth
• Demand of the locality
• RERA
• Builder's credibility

Reasons to invest in real estate property in Kolkata

• More opportunities for employment and education.
• Availability of properties in centrally located locations
• Development of suburbs
• Rapid growth
• Diverse housing costs
• Amazing returns

Steps to invest in a property in Pune

Step 1: Conduct a market survey and finalise your investment budget

Step 2: Shortlist a few properties based on your requirements

Step 3: Plan a field visit to the properties to assess their various aspects

Step 4: After finalising a property, do a background check and review documents

Step 5: Prepare the necessary documents for the property purchase

Step 6: Pay for the property, including stamp duty and registration charges

Benefits of property investment in Kolkata

• Educational excellence
• Favourable government policies
• Diverse range of properties
• Employment opportunities
• Amazing returns

Top locations for property investment in Kolkata

• Ballygunge
• New Allipore
• New Town
• Joka
• Salt Lake