Kolkata housing prices up 6%; ₹50 lakh to ₹2 crore homes make up half of sales

Kolkata home prices up by 6% in 2025 as sub- ₹50 lakh launches fell to 35% of supply, with demand shifting to the ₹50 lakh–2 cr segment

Average home prices in Kolkata were up by 6%, driven by limited availability and higher pricing of new launches, according to data from Knight Frank India. Home sales were concentrated in the ₹50 lakh–2 crore range, which accounted for nearly half of all housing transactions in 2025 as buyers continued to prioritise more premium units, the report noted.

Average home prices in Kolkata rose 6% in 2025, driven by limited supply and higher launch prices, with nearly half of all transactions concentrated in the ₹50 lakh–2 crore segment. (Representational Image) (Pexels )

In line with this shift, homes priced below ₹50 lakh dropped to 35% of new launches in 2025, down from 60% a year earlier. Knight Frank said that developers instead expanded offerings in the mid and premium-price bands, with the ₹50 lakh–1 crore category rising to 34% of new supply and units priced above ₹1 crore increasing to 31%.

The report attributed this reallocation to “developers’ strategic pivot toward higher-value products as demand for larger, better-finished units gains traction.”

“Buyer confidence strengthened through 2025 as affordability levels remained broadly stable, even amid moderate price appreciation. Home supply within the ₹50 lakh–2 crore bracket, which continues to represent the largest and most active demand segment. Developers increasingly aligned new launches to this price range, ensuring greater product availability for both first-time homebuyers and upgrading households,” the report said.

Housing sales dip by 3%

The city’s housing segment, one of the most closely tracked real estate markets in West Bengal, recorded a marginal 3% decline in annual sales to 16,896 units in 2025, reflecting subdued activity in the first half of the year, according to data from Knight Frank. Annual launches fell 6% year-on-year to 15,780 units, indicating a measured supply approach as developers focused on execution and inventory management rather than expansion.

South Kolkata maintained its dominant position, capturing 37% of total sales due to strong social infrastructure and improving metro connectivity. Micro-markets such as Sonarpur, Jadavpur and Behala remained preferred for their combination of affordability and accessibility, Knight Frank said.

Rajarhat, meanwhile, accounted for 25% of the city’s overall sales, supported by its proximity to business hubs and an evolving mix of mid- to premium-grade residential offerings. Knight Frank noted that the growth in Rajarhat reflects “the increasing demand for well-planned, strategically connected suburban corridors.”

Residential units priced above ₹1 crore accounted for 24% of sales in H2 2025, up from 18% in H2 2024. On an annual basis, the premium category expanded to 25% of total sales, signalling steady upward movement in buyer aspirations, supported by rising incomes and lifestyle upgrades, the Knight Frank report said.

Prices surge 6% YoY

The report said that average prices rose 6% YoY in 2025, driven by strong end-user demand, widening demand–supply gaps, and higher pricing for new launches. The report noted that homes priced between ₹50 lakh and 2 crore collectively accounted for roughly half of all transactions.

Kolkata’s sharpest 12-month price rise was recorded in Rajarhat New Town, where values climbed 8% YoY to ₹3,800–8,350 per sq ft, supported by strong end-user demand. Behala followed with a 7% YoY increase, with prices ranging from ₹3,500–5,250 per sq ft, driven by improving connectivity.

Tollygunge and Narendrapur each posted 6% YoY growth, with Tollygunge at ₹5,500–15,900 per sq ft and Narendrapur at ₹2,800–4,750 per sq ft. Rawdon Street completed the top five with a 5% YoY rise, maintaining its premium bracket of ₹11,700–21,800 per sq ft.