For home buyers waiting for a great deal, now’s the time. For the first time in seven years, the real estate industry is witnessing a price correction with a substantial drop in actual purchase price courtesy discounts from developers.
“After refusing to budge for years, developers in Kolkata have finally blinked. The weighted average price that the developers used to quote would remain constant, even in adverse conditions. But around 50% developers used to offer discounts on the effective price that is arrived on negotiation across the table. Now, more than 80% developers are offering discounts. This, with the constant price despite the 4.5% inflation and actual rise in construction costs, takes the effective discount to 12% and makes homes in Kolkata the most affordable in years,” said Samantak Das, chief economist and national director (research) at Knight Frank, an international residential and commercial property consultant.
Tollygunge, where prices range between Rs 5,500 and Rs 13,500 per sqft, depending on the development, has witnessed the biggest price dip of 17%. This is followed by 12% correction in Rajarhat-New Town where prices range between Rs 4,000 and Rs 6,000. Prices in Ballygunge, Park Street and Rawdon Street have remained static while Salt Lake, Behala, BT Road, Jessore Road, Madhyamgram and Narendrapur have witnessed a lower price correction in the 2%-4% range.