Kolkata
Property mart set in eternal spiral
Property prices moving north across major cities in the country, can Kolkata lag
behind other cities? Property prices are up by 10 – 35 per cent at select areas due to
demand-supply mismatch. What is more even up market apartments are being lapped up
in quick succession due to vibrant economy and the increase in disposable income.
Among the areas undergoing swift real estate development in and around the city,
specific mention must be made about Mayfair road, Lansdowne, Loudon Street,
Gurusaday road, Ballygunge circular road and theatre road. Residential property prices
moved not less than by 10 per cent across all markets, according to realtors.
The appreciation is steep in areas like Alipore by 36 per cent last year, 57 per cent in
EM bypass, 33 per cent on Jessore road, 20 per cent in Gariahat and Rashbehari. Even
entry-level investors are handsomely rewarded if one wants to enter at the green field
stage and opts to quit at the implementation stage. However, most of the demand is end
user driven and investors are yet to plunge into the city.
Incidentally, Kolkata is a shining example where private-public model has been
working effectively. Recently Icra, premier rating agency, has accorded the highest
published rating RT2 plus to Hiland Park Phase II which translates into strong project
ever granted to a real estate developer in the country.
The commercial property market is predominantly driven by IT and ITES sector and
the organised retail formats. In 2005, aggregate office segment absorption of approx. 5.5
lakh sq ft has been reported with a majority of the demand in suburban locations of sector
V, Salt Lake and New Town Rajarhat. However, with a few IT oriented development
projects maturing, rentals in Sector V have remained stable at Rs 34-35 per sq ft per
month.
According to Cushman & Wakefield, property consultants, the real estate sector is
expected to witness increased activity in the short to medium term. While demand is
expected to improve, quality stock will gradually enter the market (in Sector V and
Rajarhat) over the next 6-18 months. Several national level developers have acquired
land to tap the expected IT/ITES demand. Technology firms are anticipated to provide
employment to approximately 14,000 people translating into a real estate opportunity of
around 1.10 million sq ft.
Availability of skilled professionals at relatively lower costs compared to other metros,
low attrition rates, stable power supply and proactive state government are instrumental
in driving the national developers to Kolkata.
Kolkata Residential Property Prices
Location Apartment rate
North Kolkata
Jessore road 1,200 – 1,600
VIP road
1,200 – 1,600
Madhyamgram 950 – 1150
(Rs per sq ft)
Shyambazar 1,300 – 1,500
B.T. road
1,400 – 1,800
Central Kolkata
Park street
3,500 – 4,000
Loudon street 3,500 – 5,000
Theatre road 3,500 – 4,500
South Kolkata
Lansdowne 2,600 – 3,200
Bhowanipore 2,300 – 3,000
Eastern Kolkata
Kankurgachi 1,800 – 2,200
Salt lake
1,800 – 2,200
Beliaghata
1,300 – 1,600
EM bypass (Central)2,000 – 3,000
Rajarhat
1,300 – 1,500
Howrah
Dobson road 1,400 – 1,700
G.T. road (south)850 – 1,000
Courtesy: Business Telegraph
Kolkata Office Mart - Rentals
Rs/sqft/monthPark Street / Dalhousie
Camac Street Square
Salt Lake
Average base rent 40
31
35
Gross rent*
43
33
37
Service charges
2
2
4
Property tax
0
0
0
Gross occupancy cost45
35
41
Average efficiency (%)
72
75
72
Net effective occupancy cost62
46
57
*Includes notional cost of security deposit at 12 per cent per annum. Source:
Cushman & Wakefield Research
Office Mart – Capital values
LocationCapital value Rs per sq ft
Alipore road 2,500 – 3,000
Ballygunge
3,000 – 3,500
A J C Bose road3,500 – 4,000
Chowringhee road3,500 – 4,000
Dalhousie
3,000 – 3,500
Howrah (Southwest)1,000 – 1,300
Kankurgachhi 2,200 – 2,500
Park street
4,000 – 4,500
Salt Lake Sec V2,500 – 3,000
Shyambazar 1,500 – 1,800
VIP road
2,000 – 2,500
Source: Pioneer Property Management Ltd.