Economic Factors Affecting the Kolkata Real Estate Prices

January 24, 2023

2014 onwards has been a good time for Indian real estate growth. There has been a rise in the purchase of apartments in Kolkata. Implementation of RERA, incorporation of foreign investment in real estate construction and declaration of 100 smart cities were some of the reasons. The introduction of Pradhan Mantra Awas Yojana changed the face of real estate investment. Thus, contributed to the rapid growth of real estate across the country, with the rising economic status and purchasing capability of India's middle class.

Hundreds of factors impact the Indian housing market, including economic conditions, interest rates, income, population density, etc. For example- In the cities such as Kolkata, Jaipur, Jodhpur, Dehradun and Kanpur, high demand and bounded supply could lead to higher house rates.


Economic Factors That Impact the Real Estate Market:


Economic Growth -

Firstly, the requirement for luxury apartments in Kolkata, and ultimately price depends on the economic situation of the nation. For instance, during the recession phase, lower income makes people less willing to buy homes. This results in lower home prices.

The idea of a joint family is vanishing day by day. Today’s generation has started earning money at an early age, and everyone wants to lead an independent life. The rates of real estate property prices are equal to the income growth of our country. As the number of self-employed people increases, the demand for homes increases.


Interest Fee - 

Secondly, interest rates affect your monthly EMI. As the interest rate increases, demand for housing projects decreases. Pradhan Mantri Awas Yojana will lead to a surge in the number of homebuyers. Due to the availability of loans with low-interest rates, people are more eager to take loans and buy luxury apartments in Kolkata. In Addition, lower interest rates and interest repayment subsidies are reducing the requirement for renting houses.


Customer Trust -

Above all, reliance to the country's real estate laws is essential in real estate investment. After the introduction of RERA in 2016, the Real Estate Act prioritized the interests of buyers and imposed strict regulations on agents and builders trying to cheat customers. It has facilitated property sales across India. Salarpuria Group is one of the best real estate developers in Kolkata that has gained the trust of home buyers.

Salarpuria Group is the one-stop solution for a 21st-century luxury life. We have something for everyone starting from the kids to the senior citizens.


Mortgage Availability -

Most of India's state-owned and private banks are now keen to offer mortgages to first-time homebuyers and property investors. Therefore, allowed people to buy homes at a very young age without having enough savings to secure a mortgage.


An Economic Slowdown in Home Sales -


Further, the real estate market has been severely affected by the economic downfall. As soon as the economy retrieve, homebuyers will show their eagerness to pay. People, natural resources, capital formation, and technological advancement all impact a country's economy which affects the real estate market directly or indirectly.

So, in short, it can be concluded that property rates in India are affected by many factors. Some of the factors include economic growth, interest rates, consumer confidence, mortgage availability and an economic slowdown in real estate sales.