Hi RE Experts !

TATA eden court seems only high end apartment near to IT SEZ.
Its approx 1-2 kms from TCS new campus/Unitech Infospace/mani Casadona

Is it worth investment
Whats the future portential
Present rate 5k psft
Can we expect it to be 10k psft in another 5 years
Any thoughts on rental potential. Also is it safe to rent ?
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  • Yes, Eden Court is one of the best located projects in NT; the rates are also the highest outside of AAI. The capital value will appreciate and 10 K is possible. Renting at the current price level will give you very low return.
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  • No, I don't think so. Sorry !! Standing in 2013, and to expect RE in kolkata to grow 100% in 5 years and the fact that your starting base prise is 5000/- psft (atleast 1500/- more than affordable definition benchmark now !!), it seems extreemly difficult.

    I guess, a little moderate 8% /year will be a better assumption and also 5 years is too short a time for any RE investment unless miracle happens as in 2003-08.
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  • Joydeep... In such a case....Where do you think in NT would anyone get a 3500psf....i assume even the new soft/pre launches that may/can sprout in NT would atleast hover around 4k psf to start with.
    Where does a potential buyer looking for an investment cum stay purpose satiate his/her need in the so called "EMERGIN kolkata" of NT.
    Wipro/infosys - Both are neither denying completely notr agreeing to the propsed centres. Only if that works out ,we can see close to 30k jobs in and around that area?
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  • Joydeep !

    8% return YOY means 7500 psf rate in 2018 i.e. 5 years from now.

    Seesm bit depressed. I think 8.5 k to 9k may be more practical.

    Assuming TCS campus opertaional in 2 years whch is 1-2 km away from TATA eden court.

    But the main issue is its almost RTM. Maintenance will eat away the gain :-(
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  • As of now, co-op is the only option where you can get flat in the 3500 range in NT. The other area is the complexes around Malancha where the bp is still hovering in the 3000 range.
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  • Originally Posted by timontu
    Joydeep !

    8% return YOY means 7500 psf rate in 2018 i.e. 5 years from now.

    Seesm bit depressed. I think 8.5 k to 9k may be more practical.

    Assuming TCS campus opertaional in 2 years whch is 1-2 km away from TATA eden court.

    But the main issue is its almost RTM. Maintenance will eat away the gain :-(


    Suppose, you get a RTM flat of 1500 sft. The possible gain is 60 L (considering the SP of 9K/sft and CP of 5K/sft). The m/a charge (considering Rs 2.5 sft/month is Rs 45 K per year and Rs 225 K for 5 years), which is less than 5% of your expected gain. The amount you can recover even if you put the flat on rent for one tear!

    Frankly, m/a charge should not factor much in your decision. The more important question is the 9K rate achievable in 5 years (I think, possible)?
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  • Originally Posted by anir26
    Joydeep... In such a case....Where do you think in NT would anyone get a 3500psf....i assume even the new soft/pre launches that may/can sprout in NT would atleast hover around 4k psf to start with.
    Where does a potential buyer looking for an investment cum stay purpose satiate his/her need in the so called "EMERGIN kolkata" of NT.
    Wipro/infosys - Both are neither denying completely notr agreeing to the propsed centres. Only if that works out ,we can see close to 30k jobs in and around that area?


    My friend, as I read it, it is no more than an irony. New Town ( if not AA1, but other AAreas and even beyond into Rajarhat) is emerging locality going by textbook definition, but price has bubbled up in anticipation. My IT friends allways tell about a classic example - Wipro launched bigtime in kolkata, but did it really spread its wings like it was anticipated earlier? Does it take so much time to open up other centers if they really did well here; Infosys is just biding time at the moment which I guess they wouldn't have even started even if SEZ was allocated.

    Bottomline - we know kolkata likes to get things done slowly. But we didn't know that Kolkata would rummage through the RE price barriers.

    Accept this reality; New Town is still an emerging location, but it commands a price now that levels with many better livable locations of today. So, it means, in order satiate your hunger for a first home, you bet on new emerging locations within 3500/- - say for example, Madhyamgram (with broken Metro promise) on one side and Rajpur/Boral/Chowhati or 'Tollygunge MG Road' interiors on the other side.. Ofcourse, as someone already commented out, if stand alones are your liking then search for Co-op within New Town or Kestopur Ghoshpara area or even certain launches in Rajarhat.
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  • Originally Posted by timontu
    Joydeep !

    8% return YOY means 7500 psf rate in 2018 i.e. 5 years from now.

    Seesm bit depressed. I think 8.5 k to 9k may be more practical.

    Assuming TCS campus opertaional in 2 years whch is 1-2 km away from TATA eden court.

    But the main issue is its almost RTM. Maintenance will eat away the gain :-(


    My friend, I am not a pessimistic person atleast from RE perspective, but the reality that I see in front is extremely harsh. I gave an approximate 8% y-o-y rise in 5 years, which gives you a figure of 7500 psft. This is MORE than the price that a high end complex flat bang on Gariahat Road opposite to Jodhpur Park would cost today.

    Imagine a picture in your mind - In five years do you think that Eden court locality will change so much that it will even be able to contest my other Gariahat example that I m alluding to. May be you are convinced, I am not !!

    And another point, I have seen the Gariahat property literally stay at 6000/- ( i.e., +- 500/- ) for close to 3 years now. So, it rises until you hit a threshold beyond which people can get interested, but not turn buyers UNLESS miracle happens. Kolkata is not habituated to see those miracles unfortunately.
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  • Originally Posted by timontu
    Joydeep !

    8% return YOY means 7500 psf rate in 2018 i.e. 5 years from now.

    Seesm bit depressed. I think 8.5 k to 9k may be more practical.

    Assuming TCS campus opertaional in 2 years whch is 1-2 km away from TATA eden court.

    But the main issue is its almost RTM. Maintenance will eat away the gain :-(


    I can say that I will be happy to get a return of 8-10% on RE in the next 5 years..though others may disagree..
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  • Originally Posted by joydeepr1
    My friend, I am not a pessimistic person atleast from RE perspective, but the reality that I see in front is extremely harsh. I gave an approximate 8% y-o-y rise in 5 years, which gives you a figure of 7500 psft. This is MORE than the price that a high end complex flat bang on Gariahat Road opposite to Jodhpur Park would cost today.

    Imagine a picture in your mind - In five years do you think that Eden court locality will change so much that it will even be able to contest my other Gariahat example that I m alluding to. May be you are convinced, I am not !!

    And another point, I have seen the Gariahat property literally stay at 6000/- ( i.e., +- 500/- ) for close to 3 years now. So, it rises until you hit a threshold beyond which people can get interested, but not turn buyers UNLESS miracle happens. Kolkata is not habituated to see those miracles unfortunately.


    Gariahat/Jodhpur park areas are already fully developed. There is no special roads, sez, hotels, IT zone, Malls, aspiration developments not coming up .....so I think the rates are stagnant or slowly increasing.

    Whereas Eden court might see these developments.

    Nevertheless a 9k price after 5 years means a 90 lac 2 bhk flat, close to fully operational TCS mega SEZ, infospace, eco space etc.

    I respect your views about slow development.....I stay in Gurgaon and I know what is TRUE RE BOOM !

    May be may not be 9k....difficult choice i must say
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  • I have some doubt about the growth in 5 years. Most of the Indian IT companies are bleeding, Infosys/Wipro/TCS are all going into hard time. What the growth we have seen in 2006 to 2010 are, the same growth is difficult.

    IT companies are getting good competition from China and Philippines, so outsourcing money is also not good. Europe and US market is down and are in mild recession.

    Current West Bengal IT Policy is not at all good, as it was by previous Govt which was friendly. So, the market is very volatile. Lots of Mall are there in New Town, like DLF, Axis are not getting good response and are facing difficulty to sell office space. CBD and Financial HUB is not also getting good response, till now no private financial company shows any interest. HIDCO is keep on changing date in bidding.

    TATA Eden has already appreciate taking the market and the local developed, like TCS campus, etc. so further hike will take time, if you are planning to keep for 10 Years, it will fetch good return and rental will also be good, 5 years I doubt.
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  • Thanks Sandip, joydeep and others....good to see smart comments from Kolkata RE section.

    ya going by time value of money....evn 2x and 2.5x in 10 yrs is no great return for the risk, pain and illiquidity in real estate.

    I am not being greedy but the investment has to be compelling...15 to 20% growth is desired otherwise better in FD !

    Ne how Guys, pls come up with best investment ideas- its collective wisdom which matters :-)
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  • I have a more positive view about Kolkata RE market, particularly NT RE. I know when a broker told me in early 2010 that Unitech will sale at 5000/sft in 5 yrs time (then hovering around 2600/sft in resale and still it was a buyer's market) I laughed. Last three years was not great for either Indian IT/World Economy or Kolkata market but still it broke the 5K bracket in 3 yrs time.

    Lets accept that Kolkata didn't have a spectacular growth story for a long time and so whatever appreciation we saw was inspite of moribund economy. So, there is no reason not to believe that it will not have a good growth (yes % growth will come down because of higher base)

    Eden Court - as per the office buildings already under construction about 1 lac people will be working in the immediate vicinity. The demand will only increase. The prospect of Eden court doubling at 5K in 5 yeras is more than some small complex at Kamalgazi/Boral at 3-3.5K range.
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  • Originally Posted by timontu
    Thanks Sandip, joydeep and others....good to see smart comments from Kolkata RE section.

    ya going by time value of money....evn 2x and 2.5x in 10 yrs is no great return for the risk, pain and illiquidity in real estate.

    I am not being greedy but the investment has to be compelling...15 to 20% growth is desired otherwise better in FD !

    Ne how Guys, pls come up with best investment ideas- its collective wisdom which matters :-)


    High risk - high gain and low risk low gain, that applies to RE too.

    To get an astronomical return in RE, you need to be well connected (informed) and very fast.

    You need to identify growth areas at the very early stage. Growth area means, say new airport coming, Infosys campus coming, new road coming, metro coming, a big residential project coming, etc. Once you have those information, you buy at very early stage and make manyfolds profits in just few years. The catch is, not all proposed project ever takes off!!.

    The other similar risky bet is, buying in currently disputed areas but with great potential, such as new town or baruipur/joka plotted developmenets. You either win a lottery or loose the money!

    For less risk taking people like us, we need to enter the project in a decent area, by a decent builder as early as possible. If you can enter the project at the very early stage, yo still can make a decent money. For example, few days back we were looking at Rishi Eco project. I believe we could have entered at 3600 and the price quoted now is 4400+PLC in jst 2-3 months!!

    Rest RE investments are not much better than FD. I may missed something, so please correct me.
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  • How do we then identify proactively the best possible upcoming projects in NT rajarhat area like the on e you just talked about Rishi eco view?
    The soft launch/pre launch projects are something that appear very little on the news and is esp a word of mouth advertising, not sure about it authenticity!
    I remember I had come across this news of Siddha's pet project behind WESTIN hotel, on a land that falls right on the proposed Expressway running parallel to the N-S expressway, which is delaying the concerned builder.Again, a word of mouth news!

    So any help on the similar news which would keep all of us interested or glued to indenify more about it would help us all....is what i believe.
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