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Kolkata real estate prices: Cities like Delhi-NCR Mumbai and Bengaluru have traditionally dominated Indias real estate market but Kolkata is emerging as a major hub for real estate investors and homebuyers offering significantly higher returns on relatively lower investments compared to other Indian metros. How Kolkata became a real estate hub? According to a report by online real estate platform Magicbricks Kolkata is quickly becoming the preferred choice for property investments because it offer bumper returns of up to 25% to investors. The high returns on real estate investments stem from a combination of factors that are lacking in western and southern markets including attractive entry prices unlike cities like Delhi and Mumbai where home prices have reached a saturation point. This essentially means that investors can purchase properties at a lower price compared to other major Indian cities and earn larger returns upon sales because there is room for future price appreciation in Kolkata. Whats attracting real estate investors to Kolkata? Additionally the rental yields in the West Bengal capital are the highest among Indias major cities exceeding 6% in posh areas which translates into steady higher rental profits for investors in the long run. Kolkata is also emerging as the top choice for first-time homebuyers as home prices in this city are a lot cheaper than places like Delhi Mumbai or Bengaluru. A lower base price means one can make significant profits on property sales even with a marginal rise in real estate prices which is why investors are earning gross returns of up to 25% over a typical investment period. While the baseline per square foot price in Mumbai and Bengaluru ranges between Rs 20000 to Rs 50000 the same in Kolkata averages at around Rs 3500 to Rs 8000 making it one of the cheapest among Indias major cities. Why homebuyers prefer Kolkata? Among major Indian metros Kolkata has witnessed the highest smaller-sized (up to 500 square feet) and affordable housing indicating the city is attracting middle-class homebuyers who have a tight budget. In contrast other metros like Mumbai Delhi-NCR and Bengaluru have shifted focus to premium properties that are aimed to attract the upper middle-class and the top 1% of the population. On the long-term capital gains front Kolkata has repeatedly outperformed Delhi-NCR and Mumbai making it an attractive choice for investors as the citys residential market witnessed an impressive 16% year-on-year (YoY) sales growth in 2023 and as high as 25% in some quarters.
