Tag: Kolkata Real Estate

Reconstruction of North Kolkata and the Developments in West Bengal

Infrastructure is amongst the most important contributors to the economy of the State of West Bengal. Social and urban infrastructure are the subset of the sector and play a vital role in generating revenue for the economy. The growth in this sector has a direct correlation with the growth of the State.

As per the Census of 2011, the population of West Bengal has risen from 80.1 million in 2001 to 91.3 million in 2011. Further, urbanization in the State rose from 28 percent in 2001 to 32 percent in 2011. Real-estate sector along with the infrastructure sector has contributed significantly to cater to the growing population and urbanization of the State.

Also, West Bengal’s real-estate is growing at a rapid pace compared to the sector in other States like Karnataka, Kerala and Madhya Pradesh. However, in comparison with Maharashtra, Uttar Pradesh, Gujarat, Tamil Nadu and Andhra Pradesh the State’s real-estate sector needs to ramp up pace.

Studies reveal that the real-estate sector in West Bengal is the 5th largest contributor to the State’s Gross Domestic Product. The real-estate sector has observed an upsurge in growth with the second highest CAGR (among other sectors) of 19.6 percent during 2006-2011, hence depicting the absolute contribution of the sector in the overall development of the State.

North Kolkata, the heritage part of the city is now restructuring itself to keep in pace with the other parts of the State capital. To bring back the glory, there are various prestigious projects in this region by Merlin group, Ideal Group, Blue Chip Group etc. The resplendent, Rajmahal is a project that reflects the glory of royal legacy, a project never anticipated before in the city. Heritage of Rajmahal dates back to 1757, when Raja Nabakrishna Deb, the chief adviser of Lord Clive rebuilt a fort to a gorgeous palace, The Sovabazaar Rajbari.

Rajmahal is located at the heart of North Kolkata in Sutanuti. It is the ideal residing place for people craving for old Kolkata charm combined with the modern day luxury. This distinctive complex has all modern amenities and built on international standards. All the residents of Rajmahal will be honoured participators of the legendary and prestigious Sova Bazaar Rajbari Durga Puja, which started way back in 1757. At Rajmahal, one can live the legacy in the heart of heritage, amidst the creation of Royal art with the depiction of 300 years of Kolkata.

Infrastructure sector (construction and real-estate) has been instrumental in curtailing the unemployment rate in the State. The sector is highly labour intensive and helps in generating employment especially in the semiskilled and low-skilled category. Further, activities involved are neither cyclic nor seasonal; therefore, the sectors provide employment on a permanent basis. According to studies, in 2008 these sectors employed approximately 0.84 (thousands) people and this ratio is expected to grow to 1.40 (thousands) people by 2015.

NRI’s are willing to invest in Kolkata’s booming real estate especially at places like North Kolkata due to the old Kolkata charm and as well as the appreciation of dollar. Real-estate sector is expected to play a paramount role in developing urban and social and urban infrastructure in the coming years.

Source: corecommunique.com

Is this the right time to invest in property in Kolkata?

The doggedness of the end users to search for the perfect home is driving the real estate current scenario now. Inspite of the global economic meltdown, national meltdown, the end users of realty are still flocking the projects in search of a perfect home. This trend is very much visible and palpable in Kolkata also.

With this current trend in view, the real estate developers of Kolkata have shed their inhibitions of getting into low cost homes and are open now to invest in lands which are even beyond the boundary of the city of Kolkata.

Previously, this trend would have drawn much flak, as the middle class population had fewer options of commuting from the suburbs to the central business district of Kolkata. Not now anymore.

For the last decade, transportation and communication have improved in Kolkata like never before and is probably the only metro city, not only in India but in the entire world, which has the cheapest and several transportation options from any place within its precincts or even from the suburban areas.

The real estate economic growth only survives on the comfortability of all the classes of people in a society and what drive them are the infrastructure facilities.

So, when it comes to transportation and communication, Kolkata has surpassed all the other metros in India and has improved many folds, paving way for its real estate developers to even think of building homes in areas which are not very close to its city centers.

Hence, very good homes have mushroomed now in the various suburban areas of Kolkata, viz., 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.

So, this is probably the best time to invest in a Kolkata property. Not only because, the prices are low due to the above factors, also because even in an economic meltdown, property investments are always a safer option.

The prices and demands for realty never go down and that too in a metro city.

Also, in recent times, the Kolkata developers have followed the models of Mumbai, Chennai and Bangalore, and have come up with various offers for their properties namely offering free mid-sized cars to the first few buyers, modular kitchens and free Air-conditioners with flats which are difficult to sell due to their design patterns etc.

In this atmosphere, the highest number of buyers that Kolkata is getting is either from the NRI Indians or from people who reside in nearby cities who are making a safe bet here. The demand for home in Kolkata is increasing as a result.

The developers have seen in the past few months, that if the product mix is right which means that the location of the property, its design, its facilities and amenities are good, then any project in Kolkata wherever it is being developed, is getting a steady flow of buyers all around the year.

Hence, as stated above also, if you want to invest in a property and you don’t have a city preference or your investment instincts are driven by the market scenario and not by sentiments, Kolkata is the ideal destination.

It has improved infrastructure, low prices, steady flow of transactions all the time and opportunities galore to re-sell a property at a better price sometime in the future.
This is indeed, the right time and place to invest. Kolkata is awaiting many more deals in near future too. Probably, the pre-Puja (festivities) times of August and September will herald many more investors from different parts of this country and also abroad as the best time is the current time.

Source: moneycontrol.com

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.

 

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