Kolkata property prices have moved up 60% year-on-year, highest among all the Indian cities and much above the national average of 21%, the RBI said in its annual report.
To track real estate price movements, the RBI has compiled quarterly house price indices for nine major cities as well as an aggregate all-India index based on data on property transactions received from registration authorities of state governments.
The RBI, in its annual report, has pointed out that property prices in Kolkata witnessed the highest growth of 60% between the fourth quarter of 2012 fiscal and fourth quarter of 2013 fiscal. It was lowest for Mumbai at 10.6% during the same period.
Although Credai president and managing director of CSR Estates C Sekhar Reddy said the RBI’s assessment is based on presumptive valuation, data available from the West Bengal government show that property prices have sky rocketed mainly because of high value land sale pushed by the state government agencies since 2009.
The Kolkata Municipal Corporation (KMC), Kolkata Municipal Development Authority (KMDA) and the West Bengal Housing Board are mainly responsible for land deals and the three agencies together have sold a little above 5,000 acres for R18,000 core in the last four years, a KMDA official said.
KMC this June auctioned a 2-acre plot on the EM bypass for R115 crore, the biggest land deal in Kolkata so far with price per cottah translating to R96 lakh. In an earlier land deal in 2009 KMC sold a 3.35-acre plot on the same EM bypass for R135 crore via the auction route and this translated to R70 lakh per cottah. Prior to that
Housing Infrastructure Development Corporation (HIDCO) auctioned a 2.25-acre plot in the IT township of Rajarhat for Rs 51.13 crore.
The government agencies have set the trend, Harsh Vardhan Patodia, of Credai Bengal said. He however didn’t agree with the RBI figure saying property prices in Kolkata have gone up 18% in the last one year but prices in the city crashed during the fourth quarter last fiscal.
The latest National Housing Bank residex (for quarter to March