ssamanta

Do you think Calcutta real estate is overpriced? What I can find out, a medium (1200-1300 Sq Ft) size apartment in new town, Rajarhat costs around 45 lakhs. South Calcutta – similar apartment will cost from 1 CR. I assume average salary of someone working will be around 5 to 8 lakhs(working for say 5 years after completing education) in IT/(please correct me if I am wrong). So, he/she will have to 6 to 10 times of yearly income. In US, I think the bench mark standard is 4 to 5 times(i.e say some makes 100K, he will be able to comfortable afford between 400K to 500K) of yearly income. Also note, US mortgage rate is much lower than India – average around 4.5%. So, why the market did not correct the price automatically? I think it is because of NRI and Businessmen ( using the housing market as a vehicle to convert balk money into white money). Since the supply of Apartments was lower than demand from these 2 categories – the prices are holding up. But, with so many up coming real estate activities, once supply surplus the demand – basic economic inevitability should cause the price to go down. Also, note, after the longest Global recession in recent decades – compensation structure is going downwards. In USA – high paying high bonus jobs are gone, at least in industry (in which most of the people from India), I am hearing in India also companies are reducing pay. So, most people will not have lot of extra money to park in Real Estate market. All these factors take time to get reflected in the Real Estate market, but will they be ignored by Indian real estate market and Price increase will continue?

gharondabhai

Kolkata real estate is one of the most expensive in India, let me explain
1. Very few areas in Kolkata can be considered as decent, like Saltlake and upcoming Rajarhat.
2. Most of the buildings are surrounded by undesired elements, very few areas has similar surroundings, which you would like.
3. Most of the buildings does not have proper connecting road or connectivity. If you have a 3m wide road, you consider lucky, one auto or rickshaw does not mean connectivity.
4. Very high pollution level and noise level
5. Buildings are cramped, you can share curries through the windows.
6. Terrific traffic, a 10km takes more than an hour

dipchakrabarty

Kolkata properties are definitely overpriced.

Consider a single building in Garia with 20+ floors costing 45 lakhs, or a 8 floor concrete structure with some holes in it called flats, on RB connector asking 46 lakhs - Absolutely Rubbish !

Even I don't find the South City complex any attractive to be priced at what they are as such - but you know when it comes to pomp and show and keeping up with the Joneses sort of mentality, we Indians are always one step ahead.

Actually somebody in this forum has pointed out accurately that it's a vehicle to convert Black money to White. Therefore it's a very convenient companion for the (mostly unscrupulous) business class to use this as an investment for the future.


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