Kolkata's residential property market experienced a year of contrasting trends in 2025, navigating a nationwide slowdown while witnessing a significant surge in new project launches. The city recorded a 12% decline in housing sales, with transactions falling to approximately 16,125 units from 18,335 units in 2024. This mirrored a broader 14% sales contraction across India's top seven cities, largely attributed to economic uncertainties and layoffs within the IT sector that dampened consumer confidence.
New Supply Defies Sales Slump, Affordable Segment Dominates
In a striking counter-trend, developers demonstrated strong confidence in Kolkata's long-term prospects. The city saw a robust 31% increase in new housing launches, with around 18,590 units introduced to the market, up from 14,240 units the previous year. A dominant 87% of these new units were priced under Rs 1.5 crore, squarely targeting the city's expanding middle-class and affordable housing segment. This influx of new supply, however, contributed to a 9% rise in unsold inventory, even as property prices appreciated by an average of 5%.
Geographical Shift: East Kolkata Emerges as Launch Hub
The geography of new developments saw a notable shift in 2025. East Kolkata emerged as the leading hub, accounting for 35% of the city's total new launches. North Kolkata followed closely with a 31% share. Meanwhile, South Kolkata's share of new launches decreased to 27% from 30% in 2024, although it still accounted for nearly a quarter of the city's total sales. The New Town-Rajarhat corridor continued to be a hotspot for residential activity, bolstered by improved connectivity and growing social infrastructure.
Industry Sentiment and the Road Ahead for 2026
Industry leaders view the current phase as a period of healthy market consolidation. Anuj Puri, Chairman of Anarock Group, noted that 2025 was marked by broad-spectrum upheaval, including geopolitical tensions and IT sector layoffs. He highlighted that despite the volume drop, the overall sales value grew, with over 21% of new supply in the premium above Rs 2.5 crore bracket.
Looking forward to 2026, optimism is brewing. With the Real Estate (Regulation and Development) Act (RERA) fully operational, the industry's structural foundation is stronger. Experts anticipate that expected reductions in interest rates and lower EMIs will boost demand, particularly in the mid-segment and affordable categories.
Apurva Salarpuria, President of CREDAI Kolkata, and Sanjay Jain, Managing Director of Siddha, emphasized the growth potential driven by genuine end-user demand and a focus on value. Sushil Mohta, President of CREDAI West Bengal, remarked that sales fluctuations are normal and often influenced by new project launches. Mahesh Agarwal of Purti Realty anticipates a rebound in 2026, fueled by enhanced transparency and regulations. Arya Sumant from Eden Realty Group sees the alignment of supply with genuine demand as healthy and expects improved buyer sentiment following recent reductions in home loan rates.
