Kolkata leads in most affordable homes among the top seven major cities despite price rise

Despite a 14 percent appreciation in the economy category and a 17 percent rise in the mid- and premium-segment over the past five years, Kolkata continues to offer the most affordable homes among the top seven major cities in the country, a recent report by real estate consultancy firm Anarock has highlighted.

The report reveals that the average price of economy category homes in Kolkata, at Rs 3,347 per sq ft, remains the lowest among the major cities. Additionally, the price of mid-segment and premium homes in the city, at Rs 5,580 per sq ft, also holds the lowest position. In the luxury category, Kolkata's homes have an average selling price of Rs 12,420 per sq ft, surpassing Hyderabad's Rs 10,580 per sq ft, and closely trailing Pune at Rs 12,470 per sq ft and Bengaluru at Rs 12,970 per sq ft.

Kolkata has witnessed the least appreciation rate for luxury properties among Indian cities since 2018, standing at 12 percent. In comparison, the luxury homes market across India has seen double the appreciation rate of Kolkata, at 24 percent.

In the remaining two categories, Kolkata ranks third-lowest in terms of price appreciation. In the economy or affordable category, Kolkata's price appreciation of 14 percent exceeds that of Pune at 12 percent and Bengaluru at 13 percent. In the mid-category, Kolkata has experienced a price appreciation of 17 percent, compared to Pune's 15 percent and Chennai's 16 percent.

Interestingly, Kolkata's mid-category homes are priced lower than the economy category homes in Mumbai. Moreover, the mid-category homes in Mumbai are only slightly less expensive than the luxury category homes in Kolkata. In the luxury segment, Chennai boasts an average price of Rs 15,250 per sq ft, surpassing the National Capital Region (NCR), where luxury apartments are priced at Rs 14,500 per sq ft.

In the first half of 2023, Kolkata witnessed the sale of 11,960 units, with 4,990 falling into the economy category, 5,750 in the mid-segment, and 1,220 in the luxury category. During the same period, 8,320 units were launched, including 1,270 in the economy segment and 6,540 in the mid-segment. The luxury segment saw the launch of only 510 units.