Kolkata is still an underserved market in terms of real estate demand and supply, largely as a result of information asymmetry. However, this demand/ supply mismatch can offer immense opportunities to occupiers, developers and investors, as the real estate market achieves higher transparency. Currently, commercial property and office spaces are true indicators to determine the future of the real estate market. It is always the absorption of office space that reflects the potential economic activity and job catchment areas leading to the demand of residential units. This is primarily the reason why some of the traditional city centers across major Indian property markets are losing their attractiveness to the newly developed locations in the peripheral areas.
In the past few decades, Kolkata, has witnessed significant infrastructure development and redevelopment. Now, with the real estate market in the main city area reaching a saturation point, fresh developments are taking place along the city’s boundary. The development of the metro and improvements in the road connectivity have given a fillip to these peripheral areas. Previously, the infrastructure of the city did not allow seamless transportation from the suburbs to the central business hubs of Kolkata, which was the reason behind home buyers consolidating in the central areas. However, things have changed for the better, now with improved infrastructure and transport facilities, especially in areas around EM Bypass and BT Road that have triggered potential investors to invest in the real estate market of this region. After a prolonged waiting period, the government has finally awarded infrastructure status to the largely-neglected affordable housing, which is an encouraging news for developers. Infrastructure status will ensure easier access to institutional credit and help in reducing developers’ cost of borrowing for affordable projects.
In spite of the economic meltdown, investments in the real estate sector have always been regarded profitable, yielding positive results in time. Kolkata, one of the most populated metros in India is not an exception to this trend. Homebuyers in Kolkata have recently flocked to the Eastern Zone of Salt Lake and Rajarhat because of the immense benefits they offer in terms of luxury living, coupled with commuting facilities. New residential projects in Kolkata have been developed to cater to the increasing demand for homes in this region. New Town also falls in this category, with exceptional designs and large-scale amenities being provided at quite affordable rates to the real estate investors looking forward to inhabit this region.