The recent Budget proposal which links tax benefits on account of home loans up to Rs 25 lakh may invigorate the Kolkata real estate market more than any other major metro city.

This year’s Budget gave additional tax deduction on interest of up to Rs 1 lakh for first time home loan of to Rs 25 lakh, and property value of Rs 40 lakh. Interestingly, among the four metro cities of Delhi, Mumbai, Chennai and Kolkata, it is only in Kolkata that Rs 40 lakh can still buy as much as 1,000 sqaure feet home, that too not very far from the city.

While Kolkata may not have seen many mega housing projects in city proper, city fringes are likely to see a multitude of small housing projects in areas like Rajarhat, E M Bypass, Diamond Harbor, Garia and Kona Expressway over the next twelve to eighteen months.

According to data from Magic Bricks, the lowest prices for property around Kolkata range between Rs 1,500 to Rs 2,500 per square feet. In fact, Kolkata seems to be the only market where residential real estate development in some areas is still selling at prices less than Rs 2,000 per square feet. For example, property prices in Amtala, about 20 KM away from Kolkata at present is close to Rs 1,500 per square feet, while that in slightly more developed areas like Airport is about Rs 2,723 per square feet. A 1,000 sqaure feel house within a Rs 40 lakh budget gives ample options for home buyers in areas like Bangur, Bransdoni, Behala and even in the IT hub of City Centre New Town area. The highest property prices in Kolkata is at Alipore area, its costs Rs 12,000 to buy a square feet of residential block.

However, the highest in Kolkata could buy one average property in terms of locality in Mumbai. According to information at magicbricks.com, per square feel residential real estate in Altamount Road in Mumbai sells at Rs 64,778 per square feet. Residential property prices in Borivali East and West is about Rs 12,000 per square feet, a price equivalent to real estate price in the high street locality of Aliopore in Kolkata. In Delhi too, the property market is not much different from that in Mumbai. The lowest property prices in Delhi seem to be nothing less than Rs 8,000 per square feet. A property price in plush areas like Defence Colony is as high as Rs 32,000 per square feet, according to magicbricks.com.

In Chennai, a sub-Rs 40 lakh budget gives a buyer many options, but not as many as in Kolkata. However, nothing much would be available at below Rs 3,000 per square feet price.

“Kolkata could see a higher number of real estate transactions over the next few months due to the Budgte proposal. It will have more impact in Kolkata than in cities like Delhi, Mumbai and Bangalore,” said Jitendra Khaitan, chairman and managing director, Pioneer Property.

Traditionally, Kolkata has been regarded as an end-users, rather than investors market, which has kept the real estate sector immune to sharp price movements in other parts of the country.

In spite of a number of small projects lined up to be launched, land is posing a problem in launching big projects.

One of the biggest hurdles in developing new townships in West Bengal is the the Urban Land (Ceiling and Regulation) Act (ULCA), 1976. According to the Act, the ceiling limit on vacant land in a category ‘A’ city like Kolkata is 7.5 cottah or about 500 square meters.

West Bengal is one of the few states in the country to have a legislation like the ULCA.

Recently, the West Bengal government had formed a task force to look into the issues related to allotment of large land.

Source: Business Standard

KOLKATA: Residents of Rajarhat New Town have been complaining of the lack of civic amenities in the township. Their worries can now be put to rest. On Monday, the state cabinet cleared the proposal to enact the New Town Kolkata Development Authority (Amendment) Bill, 2013 that will allow the authority to function as a municipality.

The urban development department will now prepare the draft for the proposed amendment bill to be placed at the next assembly session. Once approved, the civic body will not only be able to collect property tax from the residents but will also provide civic amenities to them.

This apart, the cabinet also passed a proposal to acquire 5.76 acres of land at Chakpachuria mouza in Rajarhat New Town for development of civic amenities like roads, sewerage and drainage and water supply.

State urban development minister Firhad Hakim said that by bringing this amendment bill, New Town Kolkata Development Authority (NKDA) will get a municipal structure and act as a municipality for New Town.

On January 1, 2009, NKDA was formed after the New Town Kolkata Development Authority Act, 2007 was passed by the state legislature. The purpose of the authority was to provide planned development and civic services to Rajarhat-New Town residents. At present, NKDA acts as the local civic body for the township, but Rajarhat New Town does not fall under any municipality or corporation.

Residents are, however, not satisfied with the services. “There is an overall lack of civic amenities in New Town. While garbage is seen piled up in many places, car parking is a big problem. The quality of water has been a long standing problem and the sewerage and drainage system is yet to be fully developed,” a resident of the township said.

Taking into consideration the inconvenience faced by the people, the state urban development department had mooted the proposal in the cabinet to allow NKDA to assess, levy and collect property tax from residents of Rajarhat New Town. However, the proposal was deferred since the chief minister wasn’t sure if an authority could function as a municipality. The department was then asked to work on proposing some amendments in the NKDA Act so that the authority could be entrusted with the responsibility to act like a municipality or corporation and be able to collect tax. The move has been welcomed by the residents.

The proposal to acquire 5.76 acres of land at dag number 1,365 and 1,366 (P) of Chakpachuria mouza will also give a boost to the township. The land will be used for development of internal road network, sewerage and drainage and water supply system.

Though Hidco authorities were tightlipped about the land acquisition proposal, Hakim said that the land was already in the possession of Hidco and that no fresh acquisition was required. Officials said that there was no problem in acquisition of land for any public interest project.

The state cabinet on Monday took a significant decision by clearing the proposal to enact the New Town Kolkata Development Authority (Amendment) Bill, 2013 to allow the authority to function as a municipality by collecting property tax and providing civic amenities in Rajarhat New Town. The urban development department will now prepare the draft for the proposed amendment bill to be placed at the next assembly session. The cabinet also passed a proposal to acquire 5.76 acres of land at Chakpachuria mouza in Rajarhat New Town for development of civic amenities like roads, sewerage and drainage and water supply in the upcoming township.

State urban development minister Firhad Hakim said that by bringing this amendment bill, New Town Kolkata Development Authority (NKDA) will get a municipal structure and act as a municipality for New Town.

Residents of New Town have been complaining for a long time that NKDA was not able to provide civic amenities properly. “There is an overall lack of civic amenities in New Town. Garbage is seen piled up in many places, car parking is a big problem, quality of water has been a long standing problem while the sewerage and drainage system is yet to be fully developed,” a resident said.

The New Town Kolkata Development Authority Act, 2007 was passed by the West Bengal legislature and the authority was formed on January 1, 2009 to provide planned development as well as civic services and amenities in areas in Rajarhat-New Town. Presently, though NKDA acts as the local civic body, Rajarhat New Town does not fall under any municipality or corporation and residents of the township do not pay property tax to the government.

Earlier last year, the state urban development department had mooted the proposal in the state cabinet to allow NKDA to assess, levy and collect property tax from residents of Rajarhat New Town. However, the proposal was deferred as the chief minister enquired whether an authority can function as a municipality. The department was then asked to work on proposing some amendments in the NKDA Act so that the authority can be entrusted with the responsibility to act like a municipality or corporation and be able to collect tax.

In another decision, the cabinet passed the proposal to acquire 5.76 acres of land at dag number 1,365 and 1,366 (P) of Chakpachuria mouza in Rajarhat New Town for development of internal road network, sewerage and drainage and water supply system. The decision is significant given that chief minister Mamata Banerjee had announced that no more land would be acquired in Rajarhat New Town.

Though Hidco authorities were tightlipped about the land acquisition proposal, state urban development minister Firhad Hakim said that the land was already there with Hidco and that no fresh acquisition was required. Some officials said that there was no problem in acquisition of land for any public interest project.

Source: The Economic Times