The real estate market was one of the worst affected markets during the pandemic. However, the market is recovering rapidly. In data, it has been shown that the demand for housing or flats in investment has been raised by 70% more than the demand of pre-pandemic time. Buyers tend to buy flats due to their affordability and other conveniences. However, it is important to consider every aspect such as the future of the flats or if is it worth the money or not. So in this blog, I will evaluate whether, are the flats a good investment in Kolkata. This will help you to understand the need and value of flats as well.
Why are investments in Properties a good investment?
1. Affordability for investment in flats:
lats are way more affordable than plots or a house. So if you are living in a rental house, it is a regular expenditure, and investment in a flat will save that money. At the same time, if you want to invest in real estate, flats are the best options for you on an affordable budget.
2. Alternative income source through investment in apartments :
Flats are not just an investment. It can make an alternative income source for you. In the future you can put your flat on a rental basis for some extra income. This will reduce your financial burden significantly.
3. Low maintenance:
Flats are comparatively less maintenance than houses because flats require much lower space. The responsibility level is also lower. In most of the flats, there is a managing committee which takes care of maintenance. So all you have to do is to pay the money. In a nutshell, if you have a busy schedule flats are a good option for you.
4. Security:
Most of the flats have a way better security system than traditional houses. For example, most of the flats have security features such as intercom, CCTV, 24*7 security guards, house automation, etc. These security systems make sure you live with peace of mind. So if you live alone or you have kids or you have elderly at home, flats are the best option for you.
In this topic, it is important to mention that if you are looking for a flat to buy with all the updated security features, you must contact Realtech Nirman Group. They have a wide range of options of flats in the Rajarhat area of Kolkata and all of their flats have excellent security features. These will help you feel safer.
5. Flexibility:
Flats are pre easier to handle. If you are buying a flat in Kolkata today and you shift to a new city tomorrow, it is easy to handle the flat. You do not need to keep an eye on its maintenance or you do not need to stay in the city to manage it. The managing committee is there to look after it and you can sell whenever you want. So it is flexible and helps in adding flexible values to your life.
6. Social connectivity:
When you are residing in a flat, it is obvious that you have to maintain a good relationship with your neighbors. It helps in making a social bond among different types of people and strengthens the social system.
So it can be noted that flats are one of the best real estate investments ever. It has a significant number of advantages as well. Now it is important to discuss why buying a flat in Kolkata is a good idea.
Why is an investment in flat in Kolkata a good idea?
According to the report of London-based global management consulting group — AT Kearney, Kolkata is the fastest-growing city in India. This list has names of Mumbai and Bangalore as well. This report has stated that Kolkata, Mumbai, and Bangalore are the fastest-growing cities in India and this report has been made on Global Cities Index (GCI).
The report has also mentioned that the state government is working hard to make Rajarhat and New Town a smart city. The state government has formed the National Institute of Smart Governance (NISG) to take care of this matter. This is making a world-class infrastructure in Kolkata. So it is obvious that investment in Kolkata is a wise decision.
At the same time, A T Kearney’s report on Global Cities Index for 2015 has stated that Kolkata is increasing its score in business activities as well. It is increasing the human capital and cultural index. So, again it is a great idea for you to invest in a flat in Kolkata right now. It will pay you later.
Is Kolkata becoming a rich city day by day? By investment in flats :
Data from Knight Frank India is showing that the number of Ultra rich people in Kolkata is growing every year. In 2016 the number grew by 115% from 119 and in 2021 this number is 257. In terms of Ultra rich population Kolkata is holding the 5th position. The list is- Mumbai, Hyderabad, Pune, and Bangalore. However, the growth rate is way higher than in these cities.
According to the report of Knight Frank’s The Wealth Report 2022, Kolkata is home to 257 ultra-rich people who have a net worth of $30m and above. This report has also forecasted that the population of ultra-rich people in Kolkata can increase by 43.2% to 368 by 2026. So it can be noted that this city has lots of potential. If you are buying a property today, the price of the property will increase tomorrow, and in the future, you will be able to sell it at a high price. Isn’t it just like a savings account in a bank?
The increasing urbanization of Kolkata:
In 2014 the population of Kolkata was 15,123,555 while in the year 2003, this number was 13,706,42. The ratio of the increasing population is 0.9%. Today only the metro area of Kolkata has a population of 15,333,000. So it can be noted that the population is increasing rapidly and it will increase with time. As a result of the increasing population, the demand for living space will increase as well. So it is obvious that the demand for flats will increase and if you are buying a flat today, you will be able to sell it at double the price in the future.
Kolkata is growing financially through investment in flats :
The West Bengal government is working hard to get the right amount of attention from the industrialists and for this, they have approved five new industrial parks and 18 units involving an investment of about Rs 600 crore. This will help in getting industry for the state. For example, recently Deloitte has opened its branch in Kolkata to meet the increasing demand. This will also help in generating employment as well. Additionally, Rajarhat and New Town are becoming smart cities. The state government is working on developing the infrastructure of these areas. In a nutshell, it can be said that Kolkata is a growing city in terms of business and employment. So lots of employees from other cities will come to stay and work here and you will be able to earn a handsome amount by putting your apartment on rent.
Some common FAQs- Investment in flats
1. Do home loans help in saving on income tax?
Yes, under Section 24(b), you will be able to get a tax deduction on your gross income and this deduction can be up to 2 lakhs. However, you have to keep in mind that the flat and home loan must be sanctioned in your name.
2. Is investment in properties help in savings?
Definitely, if you are going for a home loan, you will be forced to reduce your expenditures. Additionally, a flat is a real estate property and will pay you later in the form of rental value or resale value. So definitely it is a form of savings.
3. Do the flats have any resale value?
Yes, it has. You can sell out your flat at any given time. However, the resale price depends on the location of the flat or on the condition of the flat. If your flat is in a prime location and it is well maintained, then you will be able to get a good price.
4. Do I need security in the flat?
Yes, it is a must-have. You can not be present at your flat 24*7 or even if you are present, it is not possible for you to fight with a group of dacoits. It has been shown that burglars avoid flats that have a good security system. So, if you want to live a safe life, choose a flat which has updated security systems.
5. Are flats reasonable to investment in flats?
Well, flats are more reasonable than houses or plots. You will be able to get a flat for 15 lakhs even. However, it is important to mention that the prices of flats depend on the location and other amenities. So, have realistic expectations.
Final words: Flats are good investment options. The demand for flats will increase over time because the population will increase. Kolkata is a growing city and the urbanization of Kolkata is also expanding. So investing in a flat can be the best decision of your life.
