Tag: commercial property in kolkata

International City beside the River Hooghly

If you were a resident of Kolkata in the 70′ and 80’s, you probably would not recognize the glitzy commercial and residential buildings dotting the skyline today. The initiative of real estate developers in Kolkata have infused the once-jaded look of the city with swank residential apartments and commercial spaces with a bold message that ‘Kolkata has truly arrived’.

Moreover, the state government is open to 100% foreign investment in real estate. The state’s urban development ministry has fixed a minimum area of 10 acres for developing housing plots, while 50, 000 square metres has been fixed for minimum built up area in construction development projects.

The Kolkata West International City across the River Hooghly in Howrah, the first venture funded by foreign capital, is spread over 390 acres that will offer 5500 bungalows on free hold land by 2009. With the best lifestyle accessories to boot, the township is a zip drive from the business district.

South City promises to be a landmark edifice as the the Emami, Sureka, Shrachi, JB. and Merlin Group of companies have come together for 3 residential-commercial projects on Prince Anwar Shah Road, B.L.Shah Road, and Alipore. Standing 35 storeys tall, South City will also house the city’s largest mall and an international school.

The city is stretching its limits towards Dankuni with another multi-use township on 5000 acres available for development. National and international bidders are in the fray for this coveted project.

On the commercial property front, 13.3 million square feet will be available in Sector V, Salt Lake and Rajarhat, the city’s IT hub. Retail spaces are also expected to grow to 1.5 million sq. ft of space – from 3 malls to 12 in the next few years, international brands will make their presence felt in the city, as incomes rise and lifestyles get more ‘stylized’. Two real estate projects in the 7-star category were launched in early 2007 to meet the aspiration for global brands amongst the elite of the city.

Appreciation

Jones Lang LaSalle, the world’s largest integrated real estate and investment management firm, finds Kolkata an attractive business destination, and worthy of figuring on the company’s list of ’emerging winners’. Inexpensive rentals, a successful private-public partnership model, incentives from the state government, political stability, a fair playing field for all real estate developers are factors very strongly in Kolkata’s favor.
In fact the West Bengal government’s initiative in tying up with private builders has facilitated opening up vast stretches of land which the existing urban land ceiling laws would never have made possible. The West Bengal government has created a cross-subsidy model for real estate developers in Kolkata, allowing them to make profits on high income housing provided middle income groups are sold flats at a no-profit, no-loss basis, and to the lower income groups at a lower than cost price.

The IT sector is growing at twice the national rate at 70% in Kolkata. The demand for 6 lakh sq.ft of commercial space has been expressed by foreign investors, MNCs and banks in the city. In fact, of all the foreign investors looking for investment opportunities in India, 40% of these are focusing on Kolkata.

Experts are of the view that ready commercial spaces available at short notice would make Kolkata a more attaractive destination for major corporations which are now looking for facilitites in the city. The time taken to sanction building plans would considerably cut down construction time by 3-6 months.

Source: NRI Realty News

The rates of the real estate property in Kolkata not very much high

Kolkata the state capital of West Bengal is one of the most favored places to live in India. Having various historical monuments, Kolkata is a city in India that stands for the city of dreams in the eastern part of India. Geographically located at the western coast of the Hugli River, Kolkata is the fifth largest post in the Country. Kolkata has been shaped well by the British and the French people in the recent centuries. Today Kolkata is known for its remarkable history and politics.

Kolkata plays a Communist Side of Politics. There is more happy people than any other city in India. This is why the city is called the City of Joy. The monuments that were developed in the British rule, are giving it a name of the City of Palaces. Today Kolkata is an Education hub, having most respectable and reputed colleges in its womb.

Kolkata is the first Indian city to have a metro rail route and is honored with as a metropolitan city. A large number of Bengali and other Indians are keen to buy a property in Kolkata as it the city that offers more employments than any other city in the state. Even if Kolkata is the state capital of one of the largest states in India, it is comparatively a lesser expensive city.

Even the rates of the real estate property in Kolkata is not very much high. Other metropolitan cities in the country do not exactly offer a buyer friendly real estate market. Specially the Northern areas of Kolkata, the real part of the state comprises of historical heritage and monuments and Multi storied old residences of the city.

And now the property tax in the city has been reduced by the mayor of the city. And this makes Kolkata a prospect destination to own a residence. A circular was issued last month regarding this news. The circular said: They are providing a separate statement showing outstanding dues or zero outstanding dues along with tax bills for 2012-13. This new settlement will reduce the harassment of taxpayers with respect to the higher AMC
There will also be an option for the Kolkata people to get a NOC (No Outstanding Certificate) by the Kolkata Municipal Department.

And now after the announcement of the CRR deduction by the RBI, home loans are expected to get cheaper. This may also boost the demand of the real estate property in Kolkata.

Kolkata being a coastal area offers a nice climate around the year. One can always find cool places to hang out in the city.

Kolkata is the second most populated city in the country. The demand of the real estate property has been radical and a quite stable. But with the launch of various residential and commercial developments at affordable rates, this demand may rise. Almost every day, companies announce their projects to be developed.

Source: Real Estate Sonepat Property in Sonepat

Prices May Not Come Down

The Indian real estate sector continues to be a favoured destination for global investors. The urban population will surge in the coming years, which, coupled with growth in employment, education and health care, will push the demand for residential and commercial space.

Urbanisation has been rapid in the past few years, with ‘upwardly-mobile’ buyers keen to invest and reap dividends from the real estate market growth. Increasing migration to the cities will drive this demand. Also anticipate a rise in sales of housing property following the recent stock market rally and a slew of optimistic RBI rules to allow foreign banks into the country’s protected banking ecosystem. Steady housing demand will be a big constant for the Indian economy this year, and the industry will focus on meeting this demand.

However, the real estate sector is burdened with high costs because of which there is little possibility of reduction in home prices in most micromarkets. Construction cost has increased by 40% in two years, while government taxes and premiums have also gone up substantially. This eliminates any scope for reduced prices, despite the weak market. Banks’ reluctance to lend to real estate companies has led to increased cost of borrowing, adding to the overall cost. In fact, these factors will also result in an increase in prices in improved market conditions. The housing industry will revive at a faster pace if a stable government is formed after the general elections in 2014.

The Confederation of Real Estate Developers’ Associations of India (CREDAI) has identified demand from tier-II and tier-III cities as an impetus for better real estate solutions. With rapid land and infrastructure development in smaller cities and towns, assisted by bank loans, higher earnings and improved standards of living, housing and construction demand will increase here.

The recent move to introduce Reits, or Real Estate Investment Trusts, is a progressive one as well. Reits are a great instrument to tap cash flow into the Indian economy, and help smaller investors access income-generating real estate assets. It will help both developers and investors, through better financing and investment options. This will give the Indian real estate market more depth. Providing tax incentives to REITs for investment in housing, especially the affordable housing sector, will increase chances of its success.

Source: Business Today

The Growing Sector Of Real Estate Kolkata

Kolkata is located in the eastern side of India, and known as the business and commercial hub of eastern zone of India. The legendary people like Mother Teresa, and, Rabindranath Tagore had deep connection with the Kolkata. Besides this, bollywood stars like Rani Mukherji, Satyajit Ray, Rimi Sen, Riya Sen, Bappi Lahiri, Kumar Sanu, Alka Yagnik, Sushmita Sen among many others celebrities born in Kolkata. The properties or real estate Kolkata are also growing in terms of price because of the emergence of IT sector in the city.

The culture of the city is mixed like India. Therefore, all the festivals of different religions are celebrated with the same zeal and joy. The big companies like TCS and IBM have established their offices in the city which are responsible for generating occupations for the people in the city and across the whole country. This makes the people to invest money in the real estate Kolkata. Also, the infrastructure of the city has developed substantially and one can easily find malls, theatres, and other modern means of living. This is another reason why people are investing in the real estate of Kolkata. You should also make investment in the properties of Kolkata as this will prove beneficial for you by generating huge returns.

Source: Land Of Properties

Kolkata Poised for High Cross-Sector Growth in Office, Retail, Hospitality and Residential

Kolkata’s real estate market is set for a high growth phase fuelled by the IT/ITES sector. This is according to the report, “Emerging City Winners Profiles: Kolkata”, released today by Jones Lang LaSalle, one of the world’s leading real estate services firm. An increasing corporate presence in the city is also triggering growth for Retail, Hospitality and Residential properties.

“Kolkata boasts of a highly literate and well equipped workforce, lower land acquisition costs (when compared to Mumbai and Delhi) and attractive government initiatives which make it a compelling destination for corporates and developers, alike”, said Mr Vincent Lottefier, Country Head, Jones Lang LaSalle India. He further added, “We at Jones Lang LaSalle are excited to be a part of Kolkata’s growth and pleased to offer our entire range services including transaction management services, retail advisory, strategic consulting, capital markets, property management, integrated facility management and project and development services”.

The report states that increasing corporate presence is stimulating growth in per capita income and encouraging consumption in Kolkata. Overall, the city provides a positive environment for new corporate entrants, as well as existing corporates eying expansion.

Abhishek Kiran Gupta, Senior Manager, Research, Jones Lang LaSalle, India adds “Kolkata is now on the ‘global radar’ of multi national companies, a large skilled labour pool, a pragmatic, business friendly and stable business environment, active promotion and incentives, combined with low operating costs and the city’s strong cultural heritage are attracting the attention of both the domestic and international business community. The city has become a favoured destination for IT/ITES activities, with a rapidly growing corporate presence.

Kolkata now has most of the ingredients in place to move its economy up the value-chain its size, skill base and heritage point to a significantly higher international profile over the long term”.

He further added “Kolkata’s real estate market is set for transformation, and property will play a pivotal role in the city’s continued renaissance. All real estate sectors have significant potential. The growing IT/ITES sector will underpin strong expansion of the office sector; Kolkata is a high priority destination for retailers attracted by its large population and rising disposable incomes; the residential market is expanding on the back of a growing IT/ITES workforce and hotel demand is being boosted by corporate business and tourism. The Kolkata real estate market is now on the radar of leading national and international developers, all keen to participate in Kolkata’s increasingly dynamic real estate market”.

According to the report, Kolkata, whose economy grew by 8% in 2005, is home to 175 IT and ITES firms which employ approximately 40,000 people. Rapid expansion and increased business activity is expected to strongly boost demand for speculative built space as well as built to suit offices and 4.5 million sq ft of additional supply is likely to be completed by 2007 in Salt Lake and New Town Rajarhat. The city is also a high priority destination for domestic and international retailers with over 2 to 3 million sq ft of organized retail under construction by 2008.

Stimulated by the growth of the IT/ITES sector, hotel room demand in Kolkata is expected to grow at an annual 11.7% over the next five years and supply at 15.4% per year. Similarly, Kolkata’s residential demand continues to be strong, as shown by absorption patterns of recent residential demand, which are expected to grow in tandem with economic activity and investor interest.

“Emerging City Winners” is Phase IV of the Jones Lang LaSalle’s World Winning Cities Research, a multi-year programme which draws together the essence of contemporary city competitiveness. World Winning Cities Research examines trends that impact the business and economic landscape, and how these factors are coalescing to create the rising urban stars of the next decade. The research aims to identify the winners and losers among the emerging BRIC cities in India, China, Russia and Brazil.

About Jones Lang LaSalle

Jones Lang LaSalle (NYSE: JLL), the only real estate money management and services firm named to FORTUNE magazine’s “100 Best Companies to Work For” and Forbes magazine’s “400 Best Big Companies,” has approximately 150 offices worldwide and operates in more than 450 cities in over 50 countries. With 2006 revenue of over USD$2.0 billion, the company provides comprehensive integrated real estate and investment management expertise on a local, regional and global level to owner, occupier and investor clients. Jones Lang LaSalle is an industry leader in property and corporate facility management services, with a portfolio of over 1.0 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse real estate money management firms, with approximately USD$40.6 billion of assets under management.

Jones Lang LaSalle has over 45 years of experience in Asia Pacific. With over 11,500 employees operating in over 30 markets across the Asia Pacific region, the company is positioned to partner with clients to provide the quality advice needed for making quality decisions.

The Little Book of Real Estate Definitions, Asia Pacific by Jones Lang LaSalle is a useful resource to gain a better understanding of the most commonly used real estate terms in the region.

Source: Business Wire India