Calcutta’s residential market witnessed a 13 per cent jump in prices and a 6 per cent rise in volume in 2023 over the previous year, a study by leading real estate consultancy NK Realtor found.

Weighted average of saleable price climbed up from Rs 5,728 per square feet in CY23 compared with Rs 5,066 per square feet in CY22 while 9,214 units were sold, up 500 units from the previous year.

The report covered 95 per cent of the Calcutta residential market, leaving out units priced over Rs 2 crore and projects having less than 50 units. In effect, the study left out localities south of Park Street to Jodhpur Park.

An emerging trend witnessed in the study was the high velocity in launches and sales of bungalow projects on the peripheries of the city.

The city saw the sale of 403 bungalows in 2023 compared with 218 units in the previous year, representing an 85 per cent rise in demand. Developers kept pace with the changing buyers’ preference and made 1,445 units available for sale in 2023 compared with just 698 units in 2022.

The Joka and Thakurpukur area, which is part of the south-west Calcutta market, accounted for 58 per cent of the supply. Nitesh Kumar, managing director & CEO of Emami Realty, said there has been ‘phenomenal’ response to its bungalow project.

“We have sold 70 per cent of the stock. The response has enthused us to launch more such projects,” Sarda said.

According to him, a two-third of the buyers are likely to use the bungalows as their primary residence.

In the apartments segment, north Calcutta reported the highest increase in sales volume (29 per cent), while prices were increased by 13 per cent. However, east Calcutta, which includes Rajarhat and New Town, continued to be the largest micro market by supply and sales in Calcutta. NK recorded 11 per cent price and 8 per cent volume growth. The area accounted for 36 per cent of sales and 41 per cent of supply of the city’s residential market.

Sanjay Jain, managing director of Siddha Group, said price rise in the peripheries were driven by construction cost. “In the high end locations, the demand was also a driver for price along with cost.”

Biplab Kumar, senior VP of brand, consulting and sales at NK Realtor, said there is a possibility of further 9-12 per cent rise in prices this year.