Tag: Apartments in Kolkata

Investment Windfall in Asansol-Durgapur belt

DURGAPUR/ASANSOL: At a time when the Rupee has taken a beating and the economy is floundering, the Asansol-Durgapur belt, also referred to as the Rurh of India, seems to have bucked the trend.

Be it central public sector or private sector projects, they are all progressing at a decent clip notwithstanding the minor time and cost overruns.

The Rs 5,000-crore 1,000 mw greenfield thermal power plant of Damodar Valley Corporation (DVC) at Andal has already commenced commercial generation and secured the energy needs of this rapidly industrializing belt.

The Rs 17,000-crore greenfield 2.5 million tonne integrated Iisco Steel Plant of SAIL is set to start commercial production in months. Once operational, it will mark the revival of a steel plant that everyone, including its employees, had given up on till a few years ago.

Construction of the Rs 5,000-crore Matix Fertiliser Plant of the Essar Group at Panagarh is progressing steadily. The NHDP of the Centre has sanctioned the six-lane conversion of NH-2 connecting New Delhi with Kolkata, expanding what is already the lifeline of the area.

The first phase of the Rs 10,000-crore airport city project is nearing completion. When it does take off in the first half of next year, it will shrink the world for those living in the region. Agriculture minister Moloy Ghatak is confident that the airport city will completely transform the socio-economic scenario of south Bengal.

Essar Oil & Gas Ltd is setting up the Rs 3,000-crore coal bed methane gas extraction project in Durgapur that will open new vistas in alternative fuel and green energy in the region. The pipeline network has already been laid.

Several companies like HR Johnson (ceramic unit at Panagarh) and Jayashree Tea (fertilizer plant at Panagarh) have evinced interest. DVC chairman RN Sen has also announced that the company will develop an unused 250-acre plot at Panagarh to set up an industrial park. The biggest paper unit in the east — Ballavpur Paper Mill — is planning to expand the Raniganj unit.

Pramod Srivastava, director of Allied ICD Services, eastern India’s only operational dry port at the Export Promotion Industrial Park (EPIP) in Durgapur, is extremely upbeat about the future. While the ICD handles 1,200 containers per month at present, he is confident that the figure will shoot up to 2,500 containers by next March.

P&H Joy Mining, the Indian subsidiary of US based Joy Global Inc, has purchased 25 acres in Andal to set up a manufacturing unit. Ardex Endura and Shyam Agro Foods have also taken land at the airport city as has Mission Hospital.

With industries pouring in, real estate sector is also abuzz with activity as some of the leading groups in the realty sector line up projects. Consumer goods firms and auto companies are also making a beeline to tap customers.

“The Asansol-Durgapur belt is attracting the biggest investment in the state at present and the Andal airport city is poised to play a bigger role in its further development,” said Burdwan district magistrate Saumitra Mohan.

Asansol Chamber of Commerce secretary and Ficci member Subrata Dutta is delighted at the strong showing by both central public sector undertakings and private companies.

“Kobe Steel of Japan is setting up a Rs 5,000-crore steel unit in Durgapur.

Source: The Time of India

Housing prices begin to fall as slowdown bites

NEW DELHI: The rising interest rates, liquidity tightening in the banking system and slowing down of economy have badly affected the real estate sector. As the demand for residential real estate has softened, its prices across the markets in India have started showing a declining trend.

According to National Housing Bank residential index, the prices have shown a declining trend in 22 out of 26 cities in the April-June 2013 quarter compared to the January-March quarter. Real estate prices have softened in major cities like Delhi, Mumbai, Bangalore, Chennai, Hyderabad, Kolkata and Pune. (see chart)

Real Estate Price Fall Index
Real Estate Price Fall Index in Major Cities

R V Verma, CMD of NHB, said rising interest rates have adversely affected the demand from end-users, which led to rise in the inventory of unsold property. As builders have to meet the loan repayment liability as well as complete the already started projects, they find it more prudent to cut prices to sell the units and generate cash.

Sanjay Dutt, joint MD at Cushman and Wakefield, a property consultancy, said the decline in prices is not sufficient enough to attract the buyers. But, the good thing is that a beginning has happened. He felt if the economic conditions do not change, the trend will continue and it will provide a good opportunity to the end-users to buy a house. Dutt said as the sentiment is subdued the investors are also absent from the market.

Verma too argued that the declining trend in the real estate prices is good for both builders as well as end-users. As the cost of money has gone up and the chances of making money in the short-term are not very bright, the investors are absent. This will be a positive for end-users to buy house.

Verma added that if prices come down, transactions will increase, which would improve the cash flow in the sector. In 2008 and 2009, when the entire country was reeling under the global financial crisis, real estate came out of it unscathed mainly because of its strategy to cut prices and increase turnover.

Source: The Times of India

Land acquisition for metro project upheld

The Calcutta High Court today set aside a trial court order upholding the acquisition of land by the transport department of the West Bengal government for construction of Central Station at Bowbazar in the city under the East-West Metro project.

A division bench comprising Chief Justice Arun Mishra and Justice Joymalyo Bagchi upheld the acquisition, observing that the state has proved that the award was announced within the statutory period of two years and not beyond that as claimed by the residents who had challenged the acquisition.

The state’s Land and Land Revenue Department had moved the division bench against an order of Justice Jyotirmoy Bhattacharya, who had in September last passed an order that the entire land acquisition proceedings concerning the properties stood lapsed.

The single bench had observed that the consequences for non-publication of compensation award within the statutory period as provided in Section 11A of Land Acquisition Act, 1894, would follow in the case.

Source: The Indian Express

E-auction of two Rajarhat plots fetches Rs 10.8 crore

KOLKATA: The Housing Infrastructure Development Corporation (Hidco) has again reaped rich harvest by selling off commercial plots in Rajarhat New Town through e-auction. The authorities have fetched a total of Rs 10.81 crore by selling two plots.

The authorities had invited offers for the plots in April this year. The e-auctioning took place on Wednesday. One plot, covering an area of 39.79 cottah, has fetched Rs 9.55 crore. The other one at Action Area I, covering 6.3 cottah, was sold for Rs 1.26 crore.

The response was very encouraging for the authorities, who have recently put up around 5 acre combining three plots in different places of Action Area- II and III for auctioning. The authorities have invited applications from bidders for a 2.5-acre retail-cum-shopping and office complex, a 1.13 acre for an educational institution and another 1 acre for an office complex. The plots will be given on a 99-years lease. The authorities are expecting a huge response for the 2.5 acre plot, as it was only last year that a similar plot broke all land-selling records after it was sold for a whooping Rs 51.13 crore.

The authorities had earlier decided that all the plots in the township will be sold through commercial bidding only. Many of the plots have been put for e-auction, as officials feel that this would bring in more transparency in the bidding process. The entire e-auction process is supervised by quality controllers and bidding is done in a total transparent way. The bidders are given passwords and asked to give digital signatures. The process to bid others takes place online so that no malpractice can take place. In the first such land selling process through e-auction earlier last year, the authorities had sold a 2-acre plot for a 10+2 high school that fetched Rs 10.10 crore.

Source: The Times of India

Will the investment in Kolkata Real Estate Market be profitable?

Kolkata, a major metropolitan city of India, has been known as the commercial capital of Eastern India as it is the only IT hub in that region. The city accommodates more than 15 million people in an area of 185 km2 (71 sq mi).

Kolkata can be divided into THREE main regions:

• Central Kolkata – Encompasses locations like Park Street, Elgin Road & Camac Street
• Eastern Kolkata – Micro markets like Salt Lake, Rajarhat and eastern parts of EM Bypass
• Southern Kolkata – Comprises locations like PA Shah Road, Rashbehari Avenue, Gariahat & southern parts of EM Bypass

The city is spreading in the following directions:

• Garia-Narendrapur in the southeast
• Behala-Joka in the south west
• Rajarhat in the northeast
• BT Road in the northwest
• Howrah in the west

According to estimates by the Confederation of Real Estate Developers of India, in the next five years 250 million sq. feet will be added to greater Kolkata, requiring an investment Rs 37,500 crore. Rajarhat in the north-east, Dankuni in north-west, Howrah in the west, Diamond Harbour road beyond Joka and Batanagar in the south-west and the Garia-Narendrapur stretch in south-east are areas which will see more than 50 per cent price rise in the next one year, said real estate sector sources. Kolkata has highest market potential value share among the States of India and the living cost is lowest among all major cities in India.

PRESENT SCENARIO:

Real Estate Properties in Kolkata is no longer a factor of safe investment for the investors rather this has turned out to be a place of high profit along with stability. A constant growth in the market graph is the perfect evidence that investors are really taking a serious part in the visible growth of the property rate in the city.

Real Estate circumstances have gone for an absolute revolution recently. It has been showing a marked improvement across all the sectors of the realty industry i.e. residential, commercial and retail. It has long shed off the image of being a “lazy city” and is emerging as an expansive and prospective city.According to real estate services firm Jones Lang LaSalle Meghraj, “The city is witnessing a resurgence driven by Government policy and support for the service industry and infrastructure development that is once again attracting industry and capital to the city.” IT revenue from Kolkata witnessed a growth of 70% , as compared to India’s IT revenue growth of 29%.

The Central Business District (CBD) in Kolkata has limited supply of land. Due to lack of space in the CBD area, areas like New Town Rajarhat, Salt Lake and EM Bypass (East Kolkata), are gaining prominence in the Real Estate market. The CBD area is not expected to have any significant addition to commercial stock in the near future due to unavailability of land.

The demand for residential real-estate in the city continues to derive from diverse quarters. The inherent latent demand of the city residents are added over by that from the investors. The demand for residential space at Rajarhat, definitely, is most noticeable. This is primarily because the perceivably higher living standards offered in the area, including connectivity and accessibility to
basic infrastructure, which remain high priority.

PROMINENT AREAS:

It is certain that Kolkata is on the threshold of modernisation and is rapidly adapting to establish itself as a world-class city. This will continue to drive demand for space in the city and also rentals upwards. Dankuni, Dum Dum and Ballygunje are amongst the other prominent places. ABSORPTION: The absorption rate for the residential developments is high especially in New Town – Rajarhat, E.M. Bypass and suburbs. Most major developments witness a high absorption ratio.

RETAIL SPACE:

The Retail market in the city is stabilizing and the projects which were stalled and delayed have restarted, however rental values in the mall may witness a marginal rise on account of buoyant demand, but rental values at city’s high streets are expected to remain stable in the medium term.

A few of the prominent high street retail destinations in the city include Park Street, Esplanade area, Camac Street, Shakespeare Sarani and Gariahaat. Properties like Diamond Plaza, Lake Mall & La-Vida will contribute approximately 0.7 mn Sq.Ft of retail space by early 2011.

Kolkata is set to witness 4.03 million sq.ft of fresh retail space supply by end 2011. Eastern Kolkata is slated to address maximum supply infusion. The region would account for 38% of supply expected by the end of 2011 of which Rajahart shall delivered the maximum space. Central Kolkata is the second most
preferred region and will witness 19% of supply infusion.

The key upcoming project lined up is Varnaparichay Mall by Bengal Shelter. A number of mall projects are also lined up in North Kolkata contributing 18% of upcoming retail space. Sisirkunja Mall by Bengal Shelter & Diamond Heritage Mall by Diamond Group would be the space to look out for in North Kolkata.

West and South Kolkata shall account for around 15% and 10% of upcoming retail space respectively. While West Kolkata region has two projects by the Avani Estates and Forum Group underway to get operational by 2011, South Kolkata also expects to address new retail project Lake Mall at Lake Market.

Park Street and Camac Street have rentals in the range of ` 205- 360/Sq.Ft per month, while southern highstreets of Rashbehari Avenue & Gariahart commands in the range of `165-270/Sq.Ft per month. The quarter witness the retailers demand in locations like Gariahat, Behala and Shyambazar, however the
transactions in prime retail properties remained few owing to the lack of quality space and irrationally rents.

National developers like DLF, Unitech, Godrej Properties and Chaterjee Group are also looking at large scale development in the city.

RESIDENTIAL SECTOR:

Better connectivity and easy accessibility with the help of the upcoming Metro Projects and easy availability of land parcel is expected to boost the pace of construction of realty projects and influence the pricing in the near future. Enquiries for high-end luxury projects have increased by an appreciable
amount in the past one year and are expected to rise even further since the stability of the Real Estate market. Multinational companies are aiming at maintaining global standard of living despite spending extra money and by employing additional resources. Kolkata property market is perky with activity
as it welcomes new construction and re-developments.

At the moment, it would be safe to say that around 60% of Kolkata’s residential real estate market is driven by investors. As a matter of interest, the costliest residential areas in Kolkata today are Park Street, Ballygunge, Alipore and Camac Street, where rates range from Rs. 12000-15000/sq.ft. The cheapest areas are in the PBD, in areas such as Dumdum and Garia. Rates there range from Rs. 1500-2500/sq.ft. National developers DLF Limited and Unitech Limited will be developing theDankuni township over 4,860 acres of land, that will be allotted by the state government.

Overall residential property prices in the city appreciated in the range of 9–15% over the past nine months. High end residential rentals in Kolkata continued to see negligible rise over the previous quarter. The mid segment lease market, however, saw quarterly appreciation in the range of 4–10% for the first time during the year. The south east micro market, especially, saw the highest rise because of its status as the city’s emergent real estate destination with many locational advantages and large supply options in the housing market. Not unlike the rental market, the south east zone showed the steepest rise for high range capital rates too.

The north east micro market also saw cap rate growth in the high (9%) as well as mid (14.0%) segments due to burgeoning end user (especially from the IT sector) demand with gradually improving social and physical infrastructure in the region.

Both rental and capital values are likely to increase further in select micro markets. With steadily improving demand and appreciating prices over the past three quarters, the city’s residential market is likely to continue witnessing further improvement through year end 2010.

UPCOMING PROJECTS:

PROJECT NAME DEVELOPER LOCATION

Kolkata West Int.City Salim And Siputra Groups Howrah
Active Acres Ruchi Realty E.M. Bypass
Rosedale Garden Rosedale Developers Pvt. Ltd. Rajarhat, New Town
New Town Heights DLF Group Rajarhat, New Town
Bellagio Team Taurus Rajarhat, New Town
Urbana Bengal NRI Complex Ltd. E.M. Bypass

Unitech, one of the world’s top 50 Real Estate developers, is developing a 100-acre residential project called, “ Uniworld City” which is only 10 minutes to Dumdum Airport. Unitech is also developing a 50-acre IT project. The State Government of Bengal announced plans earmarking 500-acre for an IT-cumbiotech park near the city airport as part of a Rs. 5000–crore program to upgrade industrial infrastructure.

OUTLOOK:

Prices in prime locations will carry on witnessing an upward trend, making it the right time to explore investment options in Kolkata real estate. The announcement of key infrastructure projects and the expansion of existing metro connectivity to the peripheral region of Rajarhat will help drive new
occupiers to the PBD micro-market. Moreover, the recent government allocation of land parcels in Rajarhat to companies including Wipro and Infosys for campus style developments has further helped improve ailing sentiments. All these factors highlight a revival in market conditions in the Kolkata office
market.

Source: Axiomestates.com