Friends, this is based on my personal opinion. Ever since i started looking for a property in and around rajarhat, i have come across many projects each with its own pros and cons and own set of unique offerings. While at present my search is still going on, i thought of taking a step back and do some consolidation. Based on my observation here are a few notable highlights



1. There are abundance of properties and projects to chose from

2. Proximity to IT hub is the biggest selling point

3. The second biggest selling point is the feeling "its high time to invest, now or never, what price i get today will not remain same in coming days and will certainly go up"

4. Every time you go to the builder of a completed project there are no new flats to be sold. Rather all flats are on resale at a high price almost double of initial price

5. Although builders keep on saying that all flats are sold yet in many project the inhabitants seem to be present only in less than 10% of the flats, the rest are empty

6. There are abundance of resale advertisement on property website's that i keep on seeing for ages.

7. Many of the localities are yet to be fully developed requiring you to drive almost a few kms even for a trivial haircut

8. Many expensive projects have already started showing marks of wear and tear

9. The metro railway is still in making with no guarantee when this will be completed



Based on the above, my question is whether in the first place so many flats will at all sell out? Also is the price justified considering future developments that are pending to be implementations



Please do share your views too.
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  • This is a good thread to start. It is clear that the economic condition in Bengal is impacting the demand in Rajarhat. The infrastructure has been generally good and is building up steadily.... the wide roads, the metro, the airport connectivity, the bus stands, eco park, St Xaviers and other colleges etc. are all good developments either done or in progress.

    The biggest problem is for commercial expansion... the financial hub is ready but has no takers... the IT firms have earmarked areas for expansion but apart from TCS, all others are playing it slow.

    Rajarhat as I see it, is a bit of a gamble now. Till the time our state govt is able to expand on their industrial promise (which is looking bleak now), Rajarhat will keep registering a slow growth. But if things improve, the demand and hence growth in that area would be exponential. Lets face it, Rajarhat is still priced very moderately as compared to other areas in the city.... so there is a lot of room for price rise

    And the moment the highrises become populated, other facilities will crop up in close proximity... including the haircut :)
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  • Is the price growth in Rajarhat way better than the rest of Kolkata? There are many areas which witnessed better appreciation than Rajarhat (like Garia). Add to that the infrastructure of New Town, the land availability - it has more potential which is yet to be materialized because of the liveability issue and investor interest.



    The occupancy of 2-3 years old complex at a better location is close to 50% (rest is with non residents) and with time the supply will come down.



    Also the huge numbers of resale flats do get sold out, showing real demand from the end users.



    In summary, the area is expected to give return in line with the rest of the city, if economic activity accelerates it will give superior return.
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  • I do second your observations. Promotional activities highlighting the popular notion that, unlike stocks, homes do not fall in value is believed to have contributed to the mania for purchasing homes. However, housing prices can move both up and down in local markets, Compounding the popular expectation that home prices do not fall, it is also widely believed that home values will yield average or better-than-average returns as investments. But if anybody follows the NHB residex,then investment in real estate seems to have a very low return /negative return.

    Originally Posted by bong14

    Based on the above, my question is whether in the first place so many flats will at all sell out? Also is the price justified considering future developments that are pending to be implementations


    One cannot predict the future and also it is very tough to get the actual data of a particular location. However an article in November,2013, stated that about 11.09 million homes in urban areas across India are lying vacant.
    Also the price seems to be not justified, as it was probably not based on Demand-Supply, which increases the risk.
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  • Originally Posted by bong14
    Friends, this is based on my personal opinion. Ever since i started looking for a property in and around rajarhat, i have come across many projects each with its own pros and cons and own set of unique offerings. While at present my search is still going on, i thought of taking a step back and do some consolidation. Based on my observation here are a few notable highlights



    1. There are abundance of properties and projects to chose from

    2. Proximity to IT hub is the biggest selling point

    3. The second biggest selling point is the feeling "its high time to invest, now or never, what price i get today will not remain same in coming days and will certainly go up"

    4. Every time you go to the builder of a completed project there are no new flats to be sold. Rather all flats are on resale at a high price almost double of initial price

    5. Although builders keep on saying that all flats are sold yet in many project the inhabitants seem to be present only in less than 10% of the flats, the rest are empty

    6. There are abundance of resale advertisement on property website's that i keep on seeing for ages.

    7. Many of the localities are yet to be fully developed requiring you to drive almost a few kms even for a trivial haircut

    8. Many expensive projects have already started showing marks of wear and tear

    9. The metro railway is still in making with no guarantee when this will be completed



    Based on the above, my question is whether in the first place so many flats will at all sell out? Also is the price justified considering future developments that are pending to be implementations



    Please do share your views too.

    All that you have observed and correctly written is a sure shot recipe for bubble-in-the-making.

    If you look at buyer seller ratio here, you will find that there are 20 times more sellers.

    Despite this the price has not crashed so far, and the price is only slowly going down the spiral. The simple reason iis that the investors still have left some hope that prices will go up. This is called hope against the hope.
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  • Originally Posted by McLordGanj
    All that you have observed and correctly written is a sure shot recipe for bubble-in-the-making.

    If you look at buyer seller ratio here, you will find that there are 20 times more sellers.

    Despite this the price has not crashed so far, and the price is only slowly going down the spiral. The simple reason iis that the investors still have left some hope that prices will go up. This is called hope against the hope.


    Price does not crash because of the profile of the investors :

    1. Mostly traders / businessmen with lots of money to spare .
    2. NRI's
    3. Politically connected folks..
    4. RE brokers...
    5. Private Equity / REIT's ( not much in Kolkata market though)

    Most of the above tend to wait for longer periods in wait of decent returns and don't want to exit at lower returns..
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  • Originally Posted by McLordGanj

    If you look at buyer seller ratio here, you will find that there are 20 times more sellers.


    Yes, there are more predators than preys...a vulnerable balance....nowadays most of the property portals are flooded with resale advertisements.

    btw, is this the hope everybody is looking for?

    Can't afford 7th pay panel burden, say Gujarat, Bengal - The Times of India
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  • Originally Posted by AbhiCCU

    Most of the above tend to wait for longer periods in wait of decent returns and don't want to exit at lower returns..



    It seems to be a mere assumption ....as for somebody 2-3% return is good enough and for somebody else 10-12% return is not so good.

    Also no investor wants to hold properties for long..unused (unlike stocks), as flats/apartments/condominiums are consumable items; high time to sell it is within 5 years (for 1st three yrs capital gain tax plays important role), else depreciation will eat up profits (I may be wrong).
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  • Hello

    Garia is now more suitable for property investment.You can get a range of flats with less price.For 2 bhk flats in garia you can visit commonfloor.
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