Kolkata: Investors’ Favorite Destination, Emerging as a Property Investment Hotspot

New Delhi: Is Kolkata’s real estate market becoming the new hotspot for investment? According to a recent report by Knight Frank India, amidst new launches and rising prices, Kolkata’s ‘inventory level’ is declining year-on-year—a positive sign for the city’s housing market.

In the first quarter of 2026, Kolkata’s housing market recorded a 5% year-on-year increase in sales, bringing the total sales volume to 4,043 units. This performance by Kolkata outpaced the national housing market, where the aggregate sales across eight major cities witnessed a 4% decline during the same period.

According to the report, 3,475 new housing units were launched in Kolkata during the first quarter of 2026 (January to March). The city also witnessed a consistent rise in home prices; average residential prices rose by 3% year-on-year to reach ₹5,937 per square foot—up from ₹5,748 per square foot in Q1 2025.

*Highest Demand for Affordable Housing*
Demand remains highest in Kolkata for homes priced at ₹50 lakh or less. This segment accounted for a 37% share of total residential sales, with 1,514 units sold during the quarter. However, this represents a 5% year-on-year decline compared to the previous year. This segment is followed by the ₹50 lakh to ₹1 crore category, which saw sales of 1,465 units. This segment recorded an impressive 8% year-on-year growth and contributed 36% to the total transactions.

Buyer interest has also surged in the luxury and premium housing segments. The ₹5 crore to ₹10 crore category witnessed a massive 163% jump in sales, with 50 units sold. Meanwhile, in the category of homes priced between ₹10 crore and ₹20 crore, 13 units were sold during this quarter.

According to a Knight Frank report, South Kolkata continued to dominate the market in 2025, accounting for a 37% share of total sales. Thanks to excellent social infrastructure and improving metro connectivity, this region remains the top choice for buyers. Micro-markets such as Sonarpur, Jadavpur, and Behala emerged as the most preferred localities due to their affordability and accessibility.

On the other hand, Rajarhat contributed 25% to the city’s total sales. Its proximity to business hubs and the availability of residential options ranging from mid-segment to premium categories have bolstered demand in the area. According to Knight Frank, this growth in Rajarhat “reflects the rising demand for well-planned and strategically connected suburban areas.”