Kolkata real estate: end users drive property prices

Kolkata is one of the very few real estate destinations where demand by end users is driving the prices of properties.

There has been a consistent demand from end buyers, and this has been unaffected by recession. One can find very good homes in various suburban areas of Kolkata, BT Road (North), Chandpur Champahati (extreme East), Baruipur (South), Howrah (West), with affordable prices keeping in view the low land cost of those areas, various commuting facilities, economic crunch overall, giving a chance to anybody to invest in those areas.

Investment pattern

Rajarhat is expected to soar on the backdrop of future IT growth story. However, due to recessionary economic phase and political changes many are assuming a wait & watch situation. EM Bypass is another attractive location.

Based on the report by ICICI Home Finance for FY 2012, the market will continue to expand by 10-15 per cent for the next 5 years.

Emerging trends

Low cost homes is the recent trend: There is an emerging trend that real estate developers are also going for low cost homes, and also investing in lands beyond the boundaries of Kolkata.

It is high end-user driven market: End-user consumes 65 per cent of this realty segment. The city is witnessing heavy demand for affordable housing apartment units in the range of Rs 25-30 lakh, as per ICICI research.

This is due to lower cost transportation facilities that provide better commuting facilities between sub-urban areas and Kolkata.

Smaller project size is developers choice: Builders are interested in smaller real estate projects, as it is easy to enter and exit these projects. This is considered after government came with revised land acquisition bill that make the takeover of the land very cumbersome.

Key developments

Kolkata’s real estate market is booming is evident from the fact that- Alchemist Township has bought 20 acres of land from Highland group in Kolkata and will build a Rs 600 crore residential project. The deal was facilated by Jones Lang LaSalle.

Godrej Properties is also launching its Rs 100 crore suoer-luxure residential project in South-Kolkata. This is the second project after Godrej Prakriti in Sodepur.

The state government has come up with a land use and development control plan (LUDCP) for the proposed Raghunathpur industrial township on a 29,000-acre barren and less fertile land identified in Purulia.

Land policy once made, will determine the kind of industries that can be set up in the area and at what rate prospective investors could buy land from landowners.

 

Land and property prices skyrocket in Howrah, Hoogly; Kolkata

Land prices have skyrocketed on Kona Expressway and stretches of National Highway-2 and National Highway-6. Call it the Singur ripple effect or impact of other projects like the DLF township project in Dankuni and logistic hub on Kona Expressway, land prices have risen at least six fold in the past four years.
Many brokers had even purchased land in the area hoping for the price to shoot up further. An acre of land which cost Rs 24 lakh even five years ago, fetches around Rs 2 crore today.

Property prices have shot up even further on Kona Expressway that serves as a gateway to Singur from Kolkata. Even in 2001, the price per acre there stood at Rs 12 lakh per acre.

“With projects like the Tata Motors small car plant in Singur, the DLF township in Dankuni, Kolkata West International City and the logistic hub on Kona Expressway coming up, it is obvious that property prices would soar. But the delay in these projects and the Singur stalemate are a matter of concern for many,” said Ram Ratan Chowdhury, managing director of Panchadeep Constructions Ltd (PCL). He has been a pioneer in bringing mega projects to Howrah.

If poor infrastructure and lack of development held back real estate prices on the western front of the Hooghly even a few years ago, the upcoming projects are changing the industrial landscape in the Howrah-Hooghly belt, thus pushing up property prices.

Less commuting time, excellent connectivity and ventures by big houses like the Tatas, DLF and the Salim-Ciputra group have made realtors make a beeline for land in the area. The Singur plant is just around 10 kilometre from the point where the Kona Expressway meets NH-6 and NH-2.

Real estate developers and brokers, who have invested in the stretch, are keeping their fingers crossed. For, they feel that the growth of price in real estate will be at a much slower pace if the Tata project shifts from Singur to an alternative location.

“The price of real estate does not change overnight, though there will be an impact on the price of land in that belt in case the Tatas leave. We hope that the Singur stalemate will be solved in a week or so at the most. If the Tatas stay, the price of land is bound to shoot up. Even if they leave, real estate prices will still go up but at a slower pace and rate,” said real estate developer Sumit Dabriwala, managing director of Riverbank Holdings Private Ltd.

Source: re-it.blogspot.in

Low on cost; high on quality

Building houses can be a costly affair, especially with raw material costs climbing steadily.K R Srikanta Prasad looks at how to build a lasting and comfortable house, and make it cost – effective.
mix and match While trying to be cost-effective, the combination of materials should be planned well. photo by the authorAs we are aware, construction costs are sky-rocketing due to various reasons. It could be due to scarcity, increasing demand, higher production cost and steep transportation costs. Under these conditions, home builders might be happy and more eager to use cost-effective material.

But one should make sure that the cost-effective material they intend to use is of good quality and durable. It should facilitate easy maintenance and not be a post-construction white elephant!

Here are a few general guidelines to aid in analysing how a particular material can be termed cost-effective.

A locally available material is always cost-effective as the transportation costs are minimum and we do not spend on middlemen. Your plans should have a good architectural layout and detail. There should be a proper combination of the materials chosen.

Modular and standardised units manufactured in factories on a large scale cost less as the production costs are low. The materials that can optimise on labour costs during construction and installation are a must as the labour costs are too high. Choose materials that do not have a high processing cost. Material that is recycled is generally not expensive unless it involves more labour to process and install.

While it is important to identify materials that are clearly less expensive, it is relevant to understand that cost-efficiency for a particular material depends on the situation as well as how it is used in a structure.

Also, if one has to achieve substantial savings while building, one has to ensure that cost-effective material is used in every part of the construction, from the foundation to the finishing, because all of it contributes to the overall cost.

We can make a list of different important materials that go into construction and save costs based on the merit of their content and the ease with which they can be implemented.

Foundation

A dump made out of boulders, brick bats, quarry waste and cement is a good alternative to conventional-size stone masonry. Even concrete waste can be recycled for this purpose.

Walls

Regular table moulded bricks used in rat trap masonry require less mortar joint and bricks; hence lower costs. Cement concrete blocks are cost-effective compared to conventional brickwork.

We have terracotta hollow blocks with different designs that are exposable in masonry. This is a good option provided they are not plastered and painted.

Conventional-sized stones that are not elaborately dressed in combination with bricks in composite masonry can work out really well.

While the stone face can be exposed, the brick face can be plastered and painted. Light-weight cement-based blocks made out of cinder contribute to economy in framed and high-rise structures.

Where suitable quality soil is available, soil stabilised blocks made in-situ are a welcome option. They are made using soil, quarry dust and cement and can be used for load-bearing walls.

They have a finish and colour that can be left without plastering. This material is not only cost-effective but also eco-friendly.

Precast concrete wall units that can be assembled on site are an option in large scale constructions. They save time and thus cost. Bamboo is renewable as well as cost cutting.

Roofs

Composite roofs made out of filler slabs can cut concrete and steel costs. Terracotta blocks that are designed for roofs can be adopted. Precast beams and roof slab elements in RCC are widely used under suitable conditions. Also, there are materials like ferrocement and fibre reinforced concretes that can be explored. These units can be thin and can take different forms. With practically adaptable design options, one can arrive at cost-effective roofing elements.

Wood

If one can recycle old wood for doors and windows, it saves a lot of money. Choosing aluminium and steel options are much cheaper than wood. Door frames made of concrete are available which are durable and involve less maintenance. In some situations, less expensive wood used for packing can be reused for panelling, railing or flooring.
Hardwood that is enamel painted is less expensive compared to polished teakwood.

Flooring

Locally available natural stones that are pre-polished are a good option. Other economical options are cement-based tiles, ceramic tiles and clay tiles. In-situ mosaics and cement floorings are also possible. Thin granite tiles made out of wasted granite works out really economical both in material and labour costs.

Others

There are so many other places where costs can be cut. Non-modular switches in electrical work, CPVC pipes and fittings in plumbing, white fittings in sanitary work, distemper in painting, kadapa slabs for storage shelves etc are options to name a few.
Thus, by a thorough market survey and an intelligent and discriminating choice and combination of material, it is possible to make a project cost-efficient. Cost-effectiveness need not always mean cheap. Good quality is a must.

Often cost-efficient material is also eco-friendly. Conversely, one that is eco-friendly can be cost effective. It costs little to be natural! The “add-ons” are what add to the cost!

Source: Deccan Herald

Top 3 Realty Investment Destinations in Kolkata

People who are planning to invest in Kolkata this year, Kolkata’s EM Bypass, Behala, and Rajarhat are consistently on the buyers’ mind for some time now. Lower asset values and land prices, availability of scalable infrastructure and the government’s development initiatives make Kolkata an ideal investment option.

The city’s 21 km EM Bypass connects the northern hub of Ultadanga to Kamalgazi in the south. Many residential and commercial establishments are coming up along this stretch. New projects here include Urban Sabujayan by Envision Realty, Altius by Pioneer Property Management Pvt Ltd, Shell Tech by Shell Tech Construction, Heights by Sukriti Realty, etc. In the Oct-Dec quarter, prices along EM Bypass price increased by 6 per cent to Rs 5,354 per sq ft as compared to Rs 5,054 per sq ft in Jul-Sept quarter. One of prime reasons for its popularity is its proximity to malls, 5-star hotels, education institutions/universities, hospitals, schools, metro rail, etc. The government has plans to build a 40-metre bridge across the Guniagachha canal while a flyover connecting EM Bypass with Park Circus and existing AJC Bose Road Flyover is under construction.

Behala is one of the major suburbs of Kolkata. It is brimming with residential projects by developers such as Merlin Projects Ltd and Swabhumi Real Estate India Ltd. The average locality price firmed up by 5 per cent in Oct-Dec quarter to Rs 3,579 per sq ft in comparison to Rs 3,421 during Jul-Sep quarter. Behala is well connected by buses, trams, taxis and metro railway. The nearby markets, hospitals, schools make the area perfect for residence. Behala also creates a huge demand for 2BHK properties.

Rajarhat, now known as New Town is located in North 24 Parganas district. The newly established township consists of gated high-rise complexes by 21st Century Realty, Siddha Group, Kwality Realtech Pvt Ltd and Mount Hill Realty Pvt Ltd. The average locality price was Rs 3,579 per sq ft in the Oct-Dec quarter, up 5 per cent from Rs 3,421 in Jul-Sept quarter. Rajarhat has major hospitals, malls, parks, clubs, 5-star hotels, etc. The connectivity of this locality depends upon buses, taxis and metro. The Data shows response towards Rajarhat is tremendous. The price of property as well as land is increasing every year therefore the best time to invest is right now.

Source: Aawas.in

Aadhar Housing Finance strengthens presence in West Bengal

Aadhar Housing Finance Private Ltd., (Aadhar) announced the launch of its first branch in Howrah, West Bengal. This branch is located at 301, 3rd Floor, Krishna Enclave, 2/1 Bhajanlal Lohia Lane, Howrah 711101 and will cater to 7 important locations like Barasat, Barrackpur, Chunchura, Chandannagar, Kharagpur, Baruipur along with Howrah, through a hub-n-spoke model.

This is Aadhar’s second branch in West Bengal, after the recently inaugurated branch in Asansol and its 17th branch in the country.

Aadhar was envisaged by DHFL and IFC, a member of the World Bank group, as a segment focused housing finance company to reach out to the low income segment with incomes ranging from Rs. 5000/- to Rs. 25000/- pm in the identified states namely Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Jharkhand, Bihar, Orissa and West Bengal. Aadhar has been enabling access to housing finance to a segment that has limited access to any form of formal lending and provides housing loan up to Rs. 12 Lac.

Speaking on the occasion, Harshil Mehta, CEO, Aadhar, said “Howrah is the second largest city of West Bengal and an important industrial and transportation centre of the state. The industrial base of Howrah is chiefly supported by light and heavy engineering industries, jute mills, cotton mills etc that employ a large section of the districts population. Howrah’s positional significance has also been responsible for the industrial development in the region and excellent connectivity with other parts of the country through rail, road, river-ways and air.”

“Howrah and surrounding areas are experiencing major real estate development especially in the affordable segment. Aadhar expects to leverage upon this development by preapproving the projects and offer home loans to prospective customers. West Bengal has shortage of approximately 23 lakh units of which about 30 % comes from Howrah and surrounding areas.”, added Mehta.

Aadhar offers an array of products including home loans, home improvement/extension loans, plot loans, self-construction loans and gradually extend products such as mortgage loan, lease rental finance and non-residential property loan/s.

Aadhar also refinances project loans essentially for development of low cost housing projects.

Source: Anandmahal