Tag: Property prices in Kolkata

New I-T rules may send houses beyond middle class means

Re-development of old tenanted properties that provided a bulk of the building stock in the city is set to cease following an amendment in the Income Tax Act that has made such transactions prohibitively expensive. Developers fear the already limited housing stock supply in Kolkata will dry up, leading to price escalation and sending houses beyond the reach of middle income families.

The new rules also discourage the development of low and middle-income properties in localities where a high-income project has been developed. With the valuation authority equating both projects with the same yardstick, not only does the buyer have to pay stamp duty on the value decided by the registering authority rather than the purchase price, he has to now pay income tax for the differential amount (difference between actual transaction value and valuation done by registration authorities). The developer, too, has to pay I-T on the differential amount.

Source: The Times Of India

Land and property prices skyrocket in Howrah, Hoogly; Kolkata

Land prices have skyrocketed on Kona Expressway and stretches of National Highway-2 and National Highway-6. Call it the Singur ripple effect or impact of other projects like the DLF township project in Dankuni and logistic hub on Kona Expressway, land prices have risen at least six fold in the past four years.
Many brokers had even purchased land in the area hoping for the price to shoot up further. An acre of land which cost Rs 24 lakh even five years ago, fetches around Rs 2 crore today.

Property prices have shot up even further on Kona Expressway that serves as a gateway to Singur from Kolkata. Even in 2001, the price per acre there stood at Rs 12 lakh per acre.

“With projects like the Tata Motors small car plant in Singur, the DLF township in Dankuni, Kolkata West International City and the logistic hub on Kona Expressway coming up, it is obvious that property prices would soar. But the delay in these projects and the Singur stalemate are a matter of concern for many,” said Ram Ratan Chowdhury, managing director of Panchadeep Constructions Ltd (PCL). He has been a pioneer in bringing mega projects to Howrah.

If poor infrastructure and lack of development held back real estate prices on the western front of the Hooghly even a few years ago, the upcoming projects are changing the industrial landscape in the Howrah-Hooghly belt, thus pushing up property prices.

Less commuting time, excellent connectivity and ventures by big houses like the Tatas, DLF and the Salim-Ciputra group have made realtors make a beeline for land in the area. The Singur plant is just around 10 kilometre from the point where the Kona Expressway meets NH-6 and NH-2.

Real estate developers and brokers, who have invested in the stretch, are keeping their fingers crossed. For, they feel that the growth of price in real estate will be at a much slower pace if the Tata project shifts from Singur to an alternative location.

“The price of real estate does not change overnight, though there will be an impact on the price of land in that belt in case the Tatas leave. We hope that the Singur stalemate will be solved in a week or so at the most. If the Tatas stay, the price of land is bound to shoot up. Even if they leave, real estate prices will still go up but at a slower pace and rate,” said real estate developer Sumit Dabriwala, managing director of Riverbank Holdings Private Ltd.

Source: re-it.blogspot.in

Connectivity hikes residential prices on VIP Road, Kolkata

Owing to the strategic location and smooth connectivity, residential properties on VIP Road have registered a capital appreciation of more than 45 per cent over the last four months. The rates that were in the bracket of Rs 3,200-3,500 per sq ft in September’12 has reached to Rs 4,000-6,000 per sq ft in January’13.

VIP Road starts after Ultadanga and stretches up to the International Airport. It includes many towns on its periphery. These are Lake Town, Bangur, Dum Dum Park, Keshtopur, Baguiati, Jora Mandir and Teghoria. International Airport and Ultadanga Railway Station located one and 5 Km away from the area, respectively ensures smooth connectivity to other parts of Kolkata. VIP Road has easy connectivity to important places like Rajarhat, Salt Lake sector-5, New Town and New Kolkata among many others.

In addition, there are good schools, markets, hospitals and restaurants in the vicinity that make this area inhabitable. Proximity to the New Town and Salt Lake also brings a lot of buyers to VIP Road. Being an end-user driven market, we see a lot of IT professionals working in the commercial hubs such as New Town and Salt Lake sector-5. Also, we see a considerable number of businessmen as end-users on VIP Road.

As per the availability of units in the area, there is a lot of resale property available. There are 70 units, on an average, available in various localities on the VIP Road. There is an ongoing project too by PS Group called Magnum, which offers 2-4 BHK units. The project is selling units at Rs 5,500-6,000 per sq ft. Units in all these new projects are selling at Rs 5,000 to 7,000 per sq ft, the average rate being Rs 6,000 per sq ft.

Source: Aawas.in