Calcutta’s Real Estate Market Defies National Trends
The Calcutta real estate market has shown surprising resilience despite challenging conditions in the broader Indian housing sector. According to a report by real estate consultancy Anarock, Calcutta recorded a 26% increase in new residential project launches during the January-March quarter of 2025, even as sales declined significantly.
Rising Project Launches in Calcutta
During the first quarter of 2025, Calcutta added 5,400 new units, marking a notable rise compared to the same period in 2024. This increase comes despite new housing supply in seven major Indian cities declining by 10% during the same timeframe. Notably, 59% of Calcutta’s new launches were within the affordable and mid-segment housing categories (priced up to ₹80 lakh).
In contrast, luxury and ultra-luxury housing projects dominated the national trend, comprising 42% of total launches. The premium housing segment (₹80 lakh to ₹1.5 crore) accounted for 27% of new launches.
Decline in Sales Amid Rising Prices
Despite the increase in new projects, home sales in Calcutta fell by 31%, with only 3,900 units sold between January and March 2025 compared to 5,650 units in the same period of 2024. The overall market slowdown was attributed to rising housing prices and weak buyer sentiment.
Anarock’s report highlighted that residential property prices in India’s top seven cities surged between 10-34% year-on-year, driven by strong demand and increased luxury segment developments.
Expert Insights on Market Conditions
Anuj Puri, Chairman of Anarock, cited several global and economic factors contributing to the market slowdown. “Rising housing prices and global headwinds, such as geopolitical tensions and a weak global economy, have impacted India’s residential market in Q1 2025,” Puri stated.
Local Developers Remain Optimistic
Despite the slowdown in sales, Calcutta’s developers expressed confidence in the market’s recovery. Sushil Mohta, President of Credai West Bengal and Chairman of Merlin Group, attributed the decline to a volatile stock market. However, Mohta remained optimistic, predicting a recovery in the upcoming quarter.
Conclusion
While Calcutta’s residential market faced sales challenges similar to other Indian cities, its growth in project launches reflects developers’ confidence in the city’s long-term potential. As the economic climate stabilizes, market experts anticipate improved buyer sentiment and increased housing demand in the coming months.
