Kolkata's Residential Market Boom Poised for Continued Growth in 2025
Kolkata’s residential real estate sector is expected to keep its momentum in 2025, building on record-breaking sales in 2024. Over 17,000 homes were sold in the city last year, with transactions nearing ₹12,000 crore, a trend analysts anticipate will continue.
Key Drivers of Market Resilience
- Affordability Advantage
Kolkata keeps its title as India’s most affordable major residential market, with home prices rising only 40% since 2011—far lower than cities like Hyderabad (132%) and Bangalore (116%)—while household incomes surged 153% during the same period. - Segmented Growth
Mid-range properties (₹60–90 lakh) and luxury homes (₹1–3 crore) saw robust demand in 2024, signaling confidence across income brackets. CREDAI West Bengal President Sushil Mohta notes premium and mid-range tiers will continue to drive growth. - Monetary Policy Tailwinds
Expectations of an RBI rate cut cycle (50 basis points over 12 months) are likely to enhance buyer confidence, further accelerating absorption of inventories.
Market Trends to Watch in 2025
- Premiumization of Offerings: Developers are incorporating smart technologies and sustainable features to cater to growing demand for high-quality living spaces.
- Infrastructure Boost: New infrastructure projects and mixed-use developments (combining retail and residential spaces) are enhancing buyer interest.
- Regional Expansion: Suburban areas are come out as new hubs, offering cost-effective alternatives to central locations.
Industry experts, including JLL India’s Samantak Das, highlight that Kolkata’s unique price-income balance positions it as a standout performer in the national real estate landscape. With sustained demand and favorable macroeconomic conditions, the city’s residential market is poised to reach record sales volumes in 2025, cementing its reputation as both affordable and dynamic.