Real Estate- Kolkata

Delhi Central - Wednesday, March 21, 2012 10:57:35 PM

There is a slowdown in Kolkata’s real estate market. The residential market is largely driven by local demand and there is little investment from outside the city. More than 50% of localities in top-10 list come under South Kolkata.

The main drivers for growth in the city are manufacturing industries and information technology. IT is concentrated in salt Lake and New Town Area while manufacturing industries are mainly located on the outskirts of the city, in areas such as Hawrah, Dum Dum and Joka.

South Kolkata has more space for development in comparison to Central and North Kolkata. New developments are concentrated in localities such as Garia, Behala, Narendrapur, Jadavpur and Kalikapur in South Kolkata. Upcoming areas such as Narendrapur and Garia witnessed price increase because of new metro connectivity and the extention of the development hub EM Bypass Road to Baruipur.

Behala, a traditional residential hub, has benefitted from the extension of the metro and is now witnessing structured growth thanks to premium projects such as Greenfield City by Bengal Greenfield Housing Development Company Ltd and Srijan Realty’s residential project. This spate of new development has led to rise in property values across this locality. The profile of locality has witnessed a shift, resulting in higher values.

Retail is also mainly concentrated in South Kolkata, in localities such as Garia, Tollygunge and Behala. There is a large proposed retail development in Ballygunge by the Goenka Group.

Jadavpur is best known for its University. It also houses one of the largest malls in the city. It will be less than 2km from the Garia metro station, once that line commences services. Proximity to up market Tollygunge is a plus point and has impacted real estate values in the locality. The quality of roads in this locality too has been upgraded.
Dum Dum is another locality that has capitalized on its location. It has enhanced metro connectivity, better road infrastructure and proximity to airport as key drivers. In addition, the availability of property at affordable prices has pushed demand in this area.

New Town is a satellite township with Information Technology as a key driver. However, other economic factors in the city are dull. There is a bank of good quality human resources but a lot more changes in policy are required to give a distinct boost to the city’s real estate market.

Rental demand in the city has been stagnant. Rajarhat, an area that was freed for residential development, is struggling without basic infrastructure services such as water and sewerage services. The same problems plague New Town as well.

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