Kolkata's real estate market has long presented a paradox. Despite having some of the most affordable housing in India, the city continues to lag behind other major metropolitan areas in terms of residential sales and new project launches. With large tracts of land available on the outskirts, the city should ideally see robust growth in home ownership aspirations. However, it ranks only eighth among Indian cities for housing sales and new supply, falling behind several Tier-II cities, which raises concerns about the underlying health of the property market.
The recent political shift in West Bengal, with the Bharatiya Janata Party (BJP) assuming power, has sparked renewed optimism among developers. They are hopeful that this change could pave the way for much-needed policy reforms aimed at revitalizing the stagnant property market. However, industry experts caution that while adjustments to land laws and approval processes are essential, they may not be sufficient to stimulate growth on their own. The real challenge lies in generating the economic momentum necessary to drive housing demand, a feat that other cities like Bengaluru and Hyderabad have managed successfully through the establishment of thriving ecosystems around technology and professional services.
Kolkata has struggled to attract talent in the same way, which has a direct impact on housing demand and price appreciation. As noted by Vidyut Saraf, deputy managing director of Forum Group, the city experiences limited inflow of skilled professionals compared to its peers. This trend has resulted in a steady divergence between Kolkata and other urban centers, where migration and urbanization have fueled demand for housing. Consequently, the property market in Kolkata reflects this reality, with homebuyers facing prolonged project completion times—an average of 5.7 years between 2014 and 2024, the longest among major Indian metros. Additionally, the city is burdened with over 19,000 unsold housing units, further compounding its challenges.
Developers attribute the sluggish market conditions not only to economic factors but also to long-standing structural constraints that have hindered large-scale development. A prime concern is the Urban Land Ceiling Act (ULCA), which many states have already repealed. While originally intended to prevent the concentration of urban land ownership, industry leaders contend that the law has led to fragmented land holdings, ultimately discouraging integrated and large-scale developments. Sushil Mohta, chairman of Merlin Group and president of Credai West Bengal, emphasizes that overcoming such structural hurdles is critical for unlocking the potential of Kolkata's real estate market. As the new government seeks to implement reforms, the hope is that these efforts will finally catalyze growth in a city that has much to offer yet remains underwhelmed in its real estate performance.