Services is the fastest-growing sector with 15.6% growth in 2017-18
Housing prices declined in Q4 2016 after DeMo, but recovered within 4 quarters to register positive growth.
West Bengal’s new IT policy to disseminate the IT-ITeS activities across the state for the benefit of the population in the fringe and rural areas. It will be a game-changer for the state’s real estate market as well as its larger economy. This is one of the many highlights of the report ‘Kolkata: The East’s Icon of Balanced Growth ‘ by knowledge partners ANAROCK at CREDAI StateCon today.
The report emphasises West Bengal’s aim to spread the reach of IT/ITeS across the state will help replicate the success of Eastern Kolkata in other parts of the state
Anuj Puri, Chairman – ANAROCK Property Consultants says, “While West Bengal’s real estate market has witnessed only marginal capital values appreciation since 2015, some significant reforms by the State Government have infused a fresh spark into it. Controlled supply and stable housing absorption will be the order of the day.”
“Though 1,25,000 units were launched in Kolkata between 2013 and Q3 2018, there was a serious supply-absorption mismatch in 2014. Fortunately, the supply became more controlled after that. Kolkata saw 86,000 units sold during 2013 – Q3 2018, with 2016 recording the highest absorption levels.”
- Property prices increased from INR 4,160 per sq. ft. in Q1 2015 to INR 4,405 per sq. ft. during Q3 2018, registering a growth of 2%.
- Residential price trends witnessed a nominal decline during Q4 2016 due to DeMo, but recovered in less than four quarters to register positive growth.
The report, which also covers West Bengal’s current and upcoming infrastructure scenario and real estate dynamics, affirms that IT and electronics-related developments will propel housing demand here going forward. The State Government’s action plan to exterminate roadblocks and rev up the growth engine will indeed be a game-changer for West Bengal.
Nandu Belani, President – CREDAI Bengal says, “West Bengal has witnessed a strong transformation of its IT-ITeS sector, with 12 established IT parks and 13 more to come. Despite initial hiccups and certain inherent growth-inhibitors, the state has now seen a mature resurgence in its work-culture, investment ambience and an uptick in its perception quotient. This report highlights the positives as well as some lacunae in West Bengal and presents a balanced view as a basis for further change”
Overall, the state is showing very positive signs:
- Exports improved by 10.5% during FY 2016-17 over the previous fiscal
- Debt as a percentage of Gross State Domestic Product (GSDP) reduced from 40.65% in 2010-11 to 33.72% in 2016-17
- West Bengal has topped the list of states in the Business Reform Action Plan (BRAP) with a 99.73% implementation score