The ‘City of Joy’- Kolkata and capital state of West Bengal is identified to be one of the most low-priced cities in India. But present day, the scene is entirely diverse as the Kolkata real estate sector has taken a big jump in the recent few years. The city of joy, Kolkata, has long been welcomed as the educational and cultural capital of India. Today, Kolkata is making news for its infrastructural and redevelopment growth. The city has swiftly wakened up to improved organization and this is impacting the property projections of the city.
Situated on the banks of Hooghly River, Kolkata or Calcutta as its better known these days is a commercial, cultural, and educational hub of East India. Spread over 1,886.67 kms, the Kolkata Metropolitan area establishes 24 panchayat samitis, three municipal corporations, and over 39 local municipalities. The city is the commercial and financial hub of East and North-East India. Having a steady economy, a number of businesses that are joined under the private-public partnership have expanded. Pharmaceuticals, mining, agriculture, textiles, and heavy engineering dominate the commerce sector. Homebuyers are now entering Kolkata’s real estate industry for its modest economical pricing. Many zones in the nation provide many inexpensive housing apartments in Kolkata that come under the price category of Rs 20 lakhs. Following are some of the most pocket friendly vicinities for upcoming residential projects in Kolkata.
Kolkata – A New Harbor for Residential Projects
At present, real estate market and new projects in Kolkata seems is growing at a fast pace and at its lucrative best. The city has taken around Rs 25, 000 Crore in lands and property only in the recent two years. With an escalating demand for both, residential as well as commercial property, Kolkata’s real estate is once again reappearing to its old energetic mode.
Real estate prices in Kolkata are far more balanced as equated with other metros like Delhi, Mumbai, Hyderabad, or Bangalore. Nevertheless, the development has not affected the property prices as they are still on the inferior side in the city. Belvedere, Park Street, Ballygunge and Southern Avenue are some of the chief areas of Kolkata where the property prices are quite high as compared to the other zones. The demand for commercial and residential properties is on the rise in the imminent areas of Garia-Narendrapur, Salt Lake, Behala-Joka, Howrah and Rajarhat.
Girikunj Phase II next to New Alipore is the recently originated residential choice in Kolkata. Private developers have aligned their new projects in Kolkata in the range of Rs. 27 -35 lakhs. Capital standards of builder floor building in TollyGunj near Menoka cinema hall is Rs 65 lakhs and the payment value of an 1800 sq. ft apartment in TollyGunj near Menoka cinema hall is approximately Rs. 15000 every month. In Jadavpur, the investment values of a 1000 to 1200 sq. Ftare in the range of Rs. 26 to 50 lakhs while the finest apartments in this area is between 55 to 60 lakhs for a 1000 to 1200 sq. Ft multi-storey flat.
Kolkata Real Estate has perceived an unparalleled price rise in the South Kolkata neighborhoods like Prince Anwar Shah Road, Ballygunge, and Elgin road. The aspects behind such a sharp rise in selected areas are the restricted obtain ability of successful retail, real estate options, and commercial projects and enhanced connectivity with better-quality urban road build eminence.
The satellite township of Kolkata, Rajarhat, accounts for the newest up-to-date residential flats in Kolkata. Rajarhat has become more projecting as many real estate developers with expansion worth Rs 200 crore, are all set to capitalize in Kolkata residential estate. The project is significant and esteemed because it is a joint undertaking with West Bengal Housing Board.
Unlike Salt Lake, Rajarhat is being established as a new city, with not only residential developments but IT Parks, SEZs, hotels, malls and shopping and commercial complexes as well. This coordinated approach towards expansion has increased the prospect of commercial office demand shifting accompanied by residential requirements. A steady change is in the offing, with Park Street and its adjoining areas likely to develop as retail high street places. Residential flats in Kolkata and property prices in the places had gone up by over 50 per cent over the last two-three years. Developers are antedating more than 15-20 per cent rise in the charges by this time of the year correspondingly.
Investment cost for rental and land rates are 50 – 80% low-priced in Kolkata as associated with other metros like Mumbai and Delhi. Outstanding residential housing is easily obtainable in the city. Property rates are maximum for areas like Alipore, Ballygunge, and Centre City around Park Street. These are also the center of the city’s entertainment and are adjacent to all the greatest shopping areas in Kolkata. Other striking residential choices are widely obtainable in suburban and urban areas.
The demand of real estate in Kolkata is charged by the progress of the Information Technology enabled Services (ITeS) sectors and Information Technology (I.T). Affordable housing accommodations are effortlessly obtainable in the Salt Lake area. Parenthetically, all IT related activities are situated in the New Kolkata Township of Rajarhat that is being established next to Salt Lake. More IT associated developments are about to happen in the colonies along neighboring Eastern Metropolitan Bypass and VIP Road.
Charges of Kolkata Real Estate have shown a sharp upward graph. Land values have increased significantly in localities of central and south Kolkata. The reasons behind such a vertical rise in selected localities are the restricted availability of successful retail, real estate options, and improved connectivity with roads and commercial projects. Other zones that are perceiving boom are the new Rajarhat Township and the Eastern Metropolitan Bypass area.
Although Kolkata property markets have always been acknowledged as the end-operator one, investor events have started to gain ground in the city, recently. According to authorities, it is DLF that has swiftly brought Kolkata in the consideration of real estate investors. Winning the medium of exchange circulated by Kolkata Municipal Development Authority, the corporation of late bought 5,000 acres of land in Kolkata borders. As much as 3,900 acres of land will be industrialized, under the scheme, for residential purposes while the rest will be used for building marketable properties.
This expansion in the real estate sector of Kolkata has activated secondary residential districts of Moulali, New Alipur, Shah Road, Sealdah, Prince Anwar, and Kankurgachi. The investment values for residential properties have augmented by 30-50% in these parts in the past couple of years while the charges have shot up by an average of 25% between 2008 and 2018. All these settings are located within the radius of 10 kms of the central residential area that incorporates Alipore, Ballygunge, and Hastings-areas where capital value of residential schemes is as high as Rs 5,000 per sq. ft. The capital values for a 3,000 sq. ft apartment in Alipur are chronicled between Rs 1.50 and 2 crores. In the same way, the normal rentals in the above-mentioned locations are from Rs 26,000 to Rs 70,000 every month.
Now that purchasing property in Kolkata prime has become impossible, marginal locations at the eastern side of the city have also come up as probable substitutes. Huge construction activities have been taking place at Kasba, Eastern Metropolitan Bypass, Topsia and New Rajarhat Township. Capital values for flats are in the range of Rs 1,900 to Rs 2,500 per sq. ft in these places. According to property advisors, stakeholders can expect a reasonable hike of 5-15% on residential property capital value, in the following one year.
The incursion of FDI (Foreign Direct Investment) has also led to an indebtedness of the general quality of real estate developments. Undertaking in real estate market has given push to residential and hospitality industry too.
With many a cosmopolitan company making their way to the town, many alleged builders are looking headfirst to setting up commercial and upcoming residential projects in Kolkata. Mainstream of the demand for property in Kolkata is accredited to the venture of international and domestic retail chains. Most recognized real estate developers are willing to capitalize and create massive residential projects and townships that would totally meet the international standards thus enticing international players to come and capitalize in Kolkata.
Therefore, it can be decided by saying real estate in Kolkata is in a high development phase, especially in hospitality, office, residential and retail sectors. For commercial, it is the Sector V in Salt Lake, EM Bypass, Park Street, Theatre Road, and Camac Street. For residential, the mainstream is again around the EM Bypass towards the New Town and Rashbehari Connector. Even though several national financial policies have forced the market to be under the assumption that the real estate industry might be hit hard, it had its own way to survive. And to few people’s surprise, the industry has survived quite well in itself. There are some compartments in Central Kolkata, but not too many developments are happening here due to the non- obtainability of large plots of property.
Nilay Thakur is a renowned real estate analyst and has spent years in the industry learning the trends and giving suggestions to the clients. He writes invigorating blogs which proves to be insightful to his readers.