suruchi

As in other major cities like Delhi and NCR, Mumbai, Pune, Chennai, Hyderabad and Bangalore, hospitality and information technology have played a major role in propelling the real estate market in Kolkata. With a number of IT parks being set up in the city, real estate is set to make a quantum leap here.

When Buddhadeb Bhattacharjee took over the reins of the CPI (M) government from Jyoti Basu, foreign investors were inspired by promises of a “resurgent West Bengal”, with Kolkata as the focus of major industrial investment and development.

Confidence amongst investors grew when Indonesia’s Ciputra and Salim Group moved in with a proposal for a 400 hectare integrated township in Howrah in July 2004. Earlier, national players like DLF and Unitech have also achieved some success in changing the skyline of the city, and are pushing for more reforms in Calcutta Municipal Corporation’s building by-laws.

NRIs are keenly watching Kolkata as an investment option – spiraling prices in commercial and IT spaces are testimony to the property boom in Kolkata. Moreover, all residential construction in the city has been sold out, and areas like Joka, Rajarhat and Tollygunj are witnessing a move towards condominium projects.

That should be good news for investors!

Expresso

You are absolutely right.

Kolkata is no longer the poor country cousin of other major metros of India. Its bouncing back to its past glory with all the trappings of a happening city. This is amply reflected in the property boom which has gripped the city in the last six months.

Prices have shot up not only in the already established and “preferred” areas of South Kolkata such as Prince Anwar Shah, Ballygunje and Bhowanipore, but also in a few distant localities like the Eastern Metropolitan Bypass and Rajarhat.

Industry associations like Confederation of Real Estate Developers’ Association of India (CREDAI) say that this turnaround was expected. Citing statistics, CREDAI says that with just 3-4% of urban land available to a 24% urban population, there is a natural shortage. As land gets scarcer, and infrastructure improves, prices can only go north.

Moreover, favourable measures from financial institutions and the inflow of FDI in the market also attribute to this upswing. This cash in-flow has also improved the quality of projects in the market. Prices in most areas, where the scope of real-estate development are high, have almost doubled in the last three years. Industry experts believe that rapid industrialisation process and creation of a better infrastructure has contributed to this price rise in Kolkata.

Bingo

Scarcity of land has been cited as one of the reasons for this price appreciation.As property rates touch the sky in Kolkata, even the State Government is taken by surprise.

A senior official from the Kolkata Municipal Corporation says that the State Govt. may consider revising prices of land for sale to commercial establishments. Having earlier parted cheaply with land at throw-away prices to commercial establishments for beautification etc., it now intends to reclaim the land.