Tag: Flats in Kolkata

More people to get homes under revised scheme

KOLKATA: With the task force on affordable housing suggesting revisions in the eligibility criteria for affordable housing schemes, Bengal is likely to witness a huge growth in demand for such residential units. Already the state has an estimated shortage of 12 lakh residential units for economically weaker section and medium income group.

The task force has suggested an upward revision of the income ceilings to Rs 8,000 per month against Rs 5,000 per month earlier. Since many residents belonging to the economically weaker section do not have regular income, the task force also proposed to consider those with an annual income of Rs 1 lakh in that case.

For the low income group, the task force recommended a revision in the ceiling from Rs 5,000-10,000 to Rs 8,000-10,000 per month, translating into an annual income of around Rs 2 lakh. It said that for cities and urban centres having a population of more than a million, state governments could consider an increase of up to a maximum of 25% on the recommended household income levels.

The estimates with the ministry of housing and urban poverty alleviation show that West Bengal had a shortage of more than 12 lakh units in 2012. Apart from the 5% demand coming from medium income group, rest of the demand for housing is from economically weaker section and middle income group.

According to Debashis Sen, secretary of the state’s urban development department, “We have been seeing huge demand for affordable housing across the state. Recently we invited applications for residential units in Rajarhat for the economically weaker section and have received more than 3,000 applications for 297 units.”

So far the state government has completed 74,000 dwelling units under JNNURM — the highest in the region. The state government has asked the central ministry of urban development for a permission to revise the project cost to prevailing market prices.

In a recent report, global real estate consultant Jones Lang LaSalle mentioned that if land is acquired at a cost of Rs 150-250 per sq ft, an affordable housing project with basic amenities (with construction cost of Rs 800-1,000 per sq ft) would result in a minimum selling price of Rs 1,400-1,700 per sq ft. The construction cost forms nearly 50-60% of the total selling price for affordable housing.

Source: The Times of India

Alchemist Township India Ltd buys 20 acres in Aerotropolis Projects in WB

KOLKATA: Alchemist Township India Ltd, a Delhi-based real estate developer, has bought 20 acres of prime land in the Aerotropolis being developed by Bengal Aerotropolis Projects Ltd (BAPL) at Durgapur, 180 kilometres from Kolkata. Leading international property consultants Jones Lang LaSalle India were the transaction mediators for this deal, which is West Bengal’s largest land transaction in 2013 to date.

“This acquisition marks Alchemist’s formal entry into the east India residential real estate space,” said a company spokesperson. “We are on an aggressive expansion and diversification drive, and the Durgapur Aerotropolis undertaking will be the first in several forays into the residential real estate domain. At Durgapur, we will be focusing on the budget homes segment.”

This project envisages developing 2.4 million sq. ft. for housing. The company has set a target to develop 10 million sq. ft. for affordable homes in Eastern India, which will include Bengal, Orrisa, Assam, Bihar and Jharkhand. BAPL’s Aerotropolis (or Airport City) is a massive project in Durgapur which is poised to reshape the aviation and industrial map of eastern India. With Changi Airports International – one of the world’s largest airport management companies – as a 26% equity stakeholder, the Durgapur Aerotropolis will have the country’s first privately-owned and operated airport.

The Aerotropolis is a unique urban development model that places the airport at its core, to act as a major economic growth driver for areas surrounding it. Mayank Saksena, Managing Director – Land Services, Jones Lang LaSalle India says, “We have already seen the Aerotropolis model successfully implemented in Hong Kong, Singapore and Dubai. The Durgapur Aerotropolis is definitely going to change the socio-economic profile of the Durgapur-Asansol region, and is all set to become a major game-changer for West Bengal. Alchemist Group’s acquisition of this massive land parcel for residential development is important not only because it the largest in West Bengal this year, but because it will be a vital chapter of real estate history in the making. The Durgapur Aerotropolis is going to be one of the most dynamic employment generators in the region – and indeed in India.”

Partha Ghosh, Promoter Director – Bengal Aerotropolis Projects Ltd said, “This acquisition is a significant milestone for BAPL as well as the Alchemist Group. We are talking about the formation of a new metropolitan destination in Eastern India, which will rival Kolkata. The Durgapur Aerotropolis is already attracting substantial investments into industries, services and associated sectors – not only from organisations in Bengal but from across India as well as globally.”

Source: The Economic Times

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