Kolkata provides a mix of highly educated people, relatively lower labour and living costs, better power and telecommunications compared than other metropolitan cities in India, adequate infrastructure and attractive real estate options. The overall growth of real estate has been significant in the last couple of years and the market is mainly driven by end users. The year 2013 was a drag on the Indian economy with poor macroeconomic conditions. Slowing income growth, sustained weakness in the rupee, sky-rocketing inflation and high borrowing rates made spending decisions difficult for consumers. But, the demand for apartments in Kolkata has been steady with genuine end users as the main buyers. This is because property prices in Kolkata are still affordable compared to other emerging metropolitan cities of India. Many developers from other states are showing interest in the Kolkata residential market and are executing their projects. This has been evident for the last few years. The absorption rate for housing projects in Kolkata has always been decent compared to other metropolitan areas. This is mainly attributed to the price of products that has been very reasonable. Kolkata has never seen artificial price bubbles, which has made the market quite sustainable. With the increase in migration from the other parts of the state and surrounding states, coupled with population growth, residential demand is likely to increase. To cope with this increase in population, the state government has planned several projects within the Kolkata Metropolitan Area to improve and develop the civic infrastructure of the city and its surroundings. The most important of these projects are a 7 km-long flyover between Brace Bridge and Batanagar; a flyover at Raja SC Mullick Road in Jadavpur; the Hooghly riverfront beautification project along the 21 km river bank along the Grand Foreshore Road; a flyover at Kamalgazi extending the EM Bypass; the-municipal water supply project for Barasat, Titagarh, New Barrackpor, and Madhymgram; and storm water drainage projects in the municipalities of Barasat, Madhyamgram, Baruipur, Rajarhat and Rishra. The metro rail network is currently under expansion and work is in progress on four lines, namely Howrah Maidan to Salt Lake Sect V, BBD Bagh to Joka, Noapara to Barasat, and New Garia to NSCB Airport.
About the author
Saikat De, Senior Manager, Valuation & Advisory Services, has over 9 years of experience in carrying out real estate valuations and consultancy services for multi-disciplinary clients across India and in Sri Lanka. He has projects like commercial feasibility studies, market demand analysis, site specific research and urban development & infrastructure projects, under his belt.