It was expected that the price of apartments in the fringe, or peripheral areas, of Kolkata would ride piggy back along the Metro Railway network. But areas which do not fall along the Metro routes or are dependent on a suburban railway system are now witnessing a steady rise in real estate prices.
Towns such as Uttarpara or Konnagar (around 40 minutes’ drive from Kolkata), north of the city, and Sonarpur and Rajpur (some one-hour drive to the South East) – that are still dependent on the suburban transport system – are witnessing a steady increase in supply of condominiums.
According to market sources, these suburbs have seen a 25 – 30 per cent rise in property prices over the last one year.
“In the last one year, property prices in the suburbs have moved up by an estimated 15 – 20 per cent,” Manish Mehta, Vice-President, IndiaHomes, a real estate advisory company, said.
According to Mehta, Kolkata had been one of the slow-movers when it came to infrastructure development in fringe areas. The National Capital Region and Bangalore have seen a much faster uptake of properties in the periphery compared to Kolkata.
The entry of big ticket developers (from Kolkata) too has led to an appreciation in real estate value.
BIG LAUNCHES
Once dismissed as non-lucrative areas, these areas are now witnessing a steady inflow of big realtors. Lower land prices compared to the city and an available catchment area due to closed factories remain key factors.
Along the northern fringes, RDB Realty and Infrastructure is already carrying out development in Konnagar. Kolkata-based Unimark Group will launch its 500-apartment (for mid- and premium segments) project (Unimark Riveria) in Uttarpara. Keventer’s already has a project in Rishra.
Accordingly, rates along Uttarpara and Konnagar at present stand at Rs 2,500–4,000 per sq foot ; in some cases, more or less at par, if not higher, than some areas south of Kolkata.
South Kolkata fringe areas, such as Sonarpur, Rajpur, Baruipur, are commanding a price of around Rs 2,750 – 3000 per square foot .
Backed by an announcement for extension of the EM Bypass (connecting north and south Kolkata), Narendrapur witnessed an appreciation in price. It now commands price of around Rs 3,000-4,000 a sq ft. Kolkata-based Rajwada Group has announced the setting up of premium condos there.
“Big ticket investments along fringe areas have often not been successes because of infrastructure issues,” said Mayank Saksena, Managing Director, Kolkata, Jones Lang LaSalle.
Source: The Hindu Business Line