While demand for premium and luxury housing is growing in major Indian cities, the real estate market in Kolkata remains focused on affordable housing. Consequently, in the third quarter of 2026, Kolkata recorded the lowest number of new home launches among the country's seven major housing markets.
According to an ANAROCK report, only 4,650 new residential units were introduced in the city from July to September. For comparison, 37,500 new homes were launched in the Mumbai Metropolitan Region (MMR), and 18,950 in Hyderabad.
The ANAROCK report indicates that Kolkata's housing market is primarily oriented towards the needs of self-occupiers. There is high demand for low-cost and mid-range housing. In contrast, many other large cities in the country are seeing a rise in the popularity of luxury housing projects. Developers in Kolkata continue to introduce new projects while considering housing costs and customer purchasing power.
ANAROCK's report shows that the share of luxury housing in the country's seven major housing markets was the lowest in Kolkata. During the period from July to September 2026, only 4 percent of the new homes launched in the city cost more than 1.5 crore rupees. In comparison, such homes accounted for 66 percent in Hyderabad, 62 percent in the National Capital Region (NCR), and 52 percent in Bangalore. This suggests that developers in these cities are focusing more on expensive and luxury properties, whereas in Kolkata, affordable and mid-range housing made up the largest share at 57 percent of all new launches. This implies that the market demand is driven by first-time homebuyers and budget-constrained families.
Experts note that in such a market, developers need to assess the actual demand and financial capabilities of buyers before starting new projects. Therefore, the supply of new housing here may remain slower compared to other major cities.
Despite the slow pace of new housing launches in Kolkata, there is a certain balance between sales and supply. According to the report, about 4,000 homes were sold in the city during the third quarter of 2026, while 4,650 new homes entered the market. This relatively small gap between sales and new supply suggests that developers are introducing new homes in line with market demand. They are initiating projects based on needs rather than in large scale anticipating future demand growth.
This also reduces the risk of accumulating a large inventory of unsold housing. The report states that the number of houses available for sale in Kolkata during the quarter was 30,400, the lowest figure among the seven major housing markets in the country. Conversely, approximately 1.98 lakh homes were available in the Mumbai Metropolitan Region, and over 1.14 lakh in Hyderabad.
One of the main reasons for the low number of new housing launches in Kolkata is also the relatively low property cost in the city. According to ANAROCK, the average price of residential property in the city was around 6,500 rupees per square foot, which was the lowest figure among the seven markets included in the report. Meanwhile, the average price in the Mumbai Metropolitan Region was around 18,000 rupees per square foot, and in the NCR—approximately 10,000 rupees per square foot.
In markets with higher housing costs, developers have a greater chance of earning higher profits from luxury projects, which encourages them to launch such large-scale projects. However, in Kolkata, the price of housing remains a crucial aspect for buyers, requiring careful project planning from developers.
Other large cities in the country are also seeing a trend of increasing demand for expensive homes. The share of homes costing over 1.5 crore rupees was significantly higher in Hyderabad, NCR, and Bangalore. Conversely, due to the high demand for affordable and mid-range housing in Kolkata, opportunities for expanding luxury projects remain limited.
The low level of new housing launches in Kolkata cannot be directly considered an indicator of a weak real estate market. Statistics also show that the city's housing market is developing along its own trajectory, where housing demand comes predominantly from real buyers. Here, it is more important for developers to maintain a balance between prices, demand, and supply than to strive for rapid expansion. While some cities are expanding luxury housing projects, the market direction in Kolkata is set by the demand for affordable housing.