A look into the real estate figures of Kolkata from July - December 2017.

1. KOLKATA
RESIDENTIAL UPDATE
JULY TO DECEMBER 2017
KnightFrank.co.in

2. 2
RESIDENTIAL
RECAP H1 2017
End-user sentiments subdued
Demonetisation hangover
Affordable and mid-segment projects
boost Southern and Nothern
peripherals

3. 3
Substantial drop in Kolkata residential
prices for the first time in the last five years

4. Effective price discount of
12% across markets
City prices
shrink by 5%
4
3,408
3,538
3,514
3,535
3,575
3,395
2,000
2,200
2,400
2,600
2,800
3,000
3,200
3,400
3,600
3,800
Q4 2012 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017
-5%
YoY

5. Rajarhat New Town
sees 12% YoY
price correction
due to a sluggish
market scenario
MADHYAMGRAM
INR 2,500-3,100/sq ft
-4%
BT ROAD
INR 3,200-4,300/sq ft
-3%
RAJARHAT NEW TOWN
INR 4,000-6,000/sq ft
-12%
SALT LAKE
INR 5,000-7,500/sq ft
-4%
JESSORE ROAD
INR 4,100-5,600/sq ft
-2%
NARENDRAPUR
INR 2,500-4,300/sq ft
-2%
BEHALA
INR 3,200-4,600/sq ft
-4%
TOLLYGUNJ
INR 5,500-13,500/sq ft
-17%
KANKURGACHI
INR 5,250-8,500/sq ft
-9%

6. 70
80
90
100
110
120
130
140
Price divergence
widens
6
CPI
KOLKATA

7. 77
Kolkata an affordable market,
becomes even more consumer-
friendly, well within the
Knight Frank Affordability
Benchmark* of
4.5
(*house price to income ratio)
2017
3.5
2010
5.7

8. Mounting unsold inventory
impacts new launches volume
Segment under pressure due to
delay in HIRA notification
Yearly supply
8
14,384
21,473 22,047
20,441
30,264
22,753
20,984
15,940
2010 2011 2012 2013 2014 2015 2016 2017
47% drop from peak in
2014; developers focus
on completion of under
construction projects24%
YoY
No.ofunits

9. Huge inventory overhang
brings new supply to
grinding halt
9
14,611
15,653
12,073
10,680
11,891
9,093
9,764
6,176
H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017
32%
YoY
No.ofunits
Half-yearly supply
Declining trend of
launches;
61% down from peak
in H2 2014

10. Rajarhat-New Town bow
down to inventory pressure;
launches shrink by 33%
YoY
SOUTH
1,976 units
-37%
EAST
124 units
-86%
NORTH
1,544 units
16%
RAJARHAT
2,470 units
-33%
CENTRAL
62 units
-12%
• North Kolkata locations like
Jessore Road, BT Road, VIP
Road notice 16% YoY
uptrend in launches
• South Kolkata sees a 37%
YoY drop over H2 2016 due
to huge concentration of
housing stock in mid and
budget housing categories

11. 11
INR H2 2016 H2 2017
<2.5 mn 67% 51%
2.5-5 mn 20% 20%
5-7.5 mn 8% 22%
7.5-10 mn 3% 1%
>10 mn 2% 6%
Ticket sizes that saw
maximum change in H2 2017
Affordable housing projects in
vogue as majority of projects
launched in ticket sizes of less
than INR 2.5 mn, albeit a drop
from 67% in H2 2016 to 51% in
H2 2017

12. 31% sales decline from peak
in 2015
Buyer preference skewed
towards completed projects
12
12,664
16,078 16,394
15,553
18,751
20,618
17,647
14,147
2010 2011 2012 2013 2014 2015 2016 2017
20%
YoY
Yearly sales
Weak buyer sentiment
post demonetisation
not yet uplifted; sales
declined by 20% YoY
No.ofunits

13. 34% decline from peak of H2 2015
Delay in HIRA implementation
deterred buyers’ decision
Only pedigreed developers and
finished products driving sales
closures
13
7,033
8,501
8,163
6,874
8,607
9,170
7,308
6,038
H2 2010 H2 2011 H2 2012 H2 2013 H2 2014 H2 2015 H2 2016 H2 2017
Half-yearly sales
Multiple policy reforms
send end-users to sit
on fences; sales shrunk
by 17% YoY
No.ofunits

14. Rajarhat witnesses sales
de-growth of 21% YoY due
to low volume of finished
products available for
immediate take-up
SOUTH
1,751 units
-30%
EAST
906 units
17%
NORTH
1,268 units
-6%
RAJARHAT
2,063 units
-21%
CENTRAL
60 units
-46%
• Peripheral micro-markets
(North) witnessed less sales
decline because of relatively
affordable pricing and
infrastructure (metro) push
• Sales volume rise 17% YoY
in East on the back of
affordable housing push by
government
• South noted 30% sales de-
growth due to oversupply of
mid and budget housing
products

15. Highest QTS since 2015
More than 3 years to offload
existing inventory
Age of inventory rises from 8.1
quarters in 2015 to 12.1 in 2017
Analysis of unsold inventory and QTS
15
32,914
35,495
36,950
35,874
34,426
37,459
39,114
39,252
8.5
11.1
12.5
10.7
10.3
8.3
10.6
12.1
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
28,00030,00032,00034,00036,00038,00040,000
H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017
QTS
UnsoldInventory
Unsold inventory QTS
Market stress
aggravated by sharp
increase in QTS and
age of inventory

16. CENTRAL
60 units
QTS: 6.2
Age: 9.9
Largest markets of
North and South
Kolkata face the
highest distress
Age and QTS in quarters
SOUTH
12,168 units
QTS: 12.8
Age: 13.8
RAJARHAT
10,991 units
QTS: 10
Age: 10.6
NORTH
11,383 units
QTS: 13.3
Age: 13
EAST
4,318 units
QTS: 10
Age: 10.3

17. KEY FINDINGS
01 03
02 04
17
Annual launches drop 47% from
peak in 2014; developers focus
on completion of under
construction projects
Effective price discount of
12% across markets
Market stress aggravated by
sharp increase in QTS and
age of inventory
Weak buyer sentiment post
demonetisation not yet uplifted;
annual sales declined by 20%
YoY

18. KOLKATA
RESIDENTIAL UPDATE
JULY TO DECEMBER 2017
KnightFrank.co.in
knightfrank.india@in.knightfrank.com