Kolkata Property Market Information

Located on the eastern shore of the popular river Hooghly, Kolkata is the capital city of West Bengal. The city is renowned as “City of Joy”, and it is supposed to be one among the cheapest cities in the whole country.

The city is displaying considerable signs of improvement in all divisions, and the largest level of growth has been witnessed in the Kolkata property markets. With a growing demand for both residential as well as commercial properties, Kolkata real estate industry is returning back, once again, to its active mode.

With a large number of multinational companies emerging in Kolkata, there has been a rapid boost in the number of investors in the up-market property segment in the city. In order to maintain and practice the international standards of living, most of the prominent corporations operating in the city are prepared to spend additional amounts to match up to global standards.

Property Price in Kolkata

As on December 2011, a square foot of land in the Alipore area of Kolkata has been reported to cost from Rs. 11,262 to Rs. 13,118. Barasat, on the contrary, happens to be the cheapest area in the entire Kolkata real estate sector where the property rates are in the range of Rs. 1,685 to Rs. 1,798 per square feet. At present, nearly 68 new residential projects are coming up in the Kolkata city across different locations.

Many reputed developers in the city are looking forward to constructing multitude of buildings in the region. A huge fraction of demand for Kolkata property appears to come from both domestic as well as international retail chains to establish an increasing development in Kolkata’s commercial markets. As forecasted by the leading property experts, the city will definitely witness a remarkable increase in demand for workplace spaces in the upcoming times.

Ballygunge Circular area has been considered to be the costliest area in the city. Land price, here, varies between Rs. 12,155 and Rs. 14,460 per square feet. In Baliganj area, land price varies from Rs. 8,878 to Rs. 10,934 per square feet.

Role of Government

The city properties are observing marvelous growth, all thanks to the efforts made by the state government and the lively contribution from tons of private corporate firms. These PPP (Public-Private Partnership) projects have been able to efficiently cater to the demands of both commercial and residential property markets in Kolkata.

An example of such a venture is the new residential project undertaken by West Bengal Housing Infrastructure Development Corporation in the locality of New Town, which has the potential to provide thousands of housing options to the consumers. In order to speed-up the pace of growth of residential construction activities in the city, the West Bengal housing board Corporation and many other government agencies are joining hands with the local as well as outside potential private players.

Alternatively, prominent real estate builders, including Unitech and DLF, are impending with their upscale as well as multi-storied building housing facilities in the tangential suburban regions of Kolkata. The city is all set to turn out to be the upcoming new IT destination in India. As a result, commercial properties in the city are quickly obtaining huge demands from many giant MNCs and business corporate companies from all around the world.

There is a huge requirement for commercial land for the construction of office lands for other sectors including shopping complexes, restaurants, entertainment zones, insurance companies, hotels, call centers etc. Therefore, all sorts of investors and builders are finding it to be very profitable to invest huge capitals in Kolkata real estate sector and reap amazing returns.

As of now, Kolkata property market is witnessing a massive improvement in both commercial and residential property segments, and many professional realtors expect this growth to continue years after. You may, therefore, consider investing in those areas where the property rates are fairly low at the moment. Over the next 3-5 years, you can be rest assured of getting at least 30-40% appreciation in the property rates. How can property rates stagnate with an ever increasing population and development on the rise!

However, pragmatic approach tells you to stay away from certain areas where the land prices are already too high. Development would only take place in areas where space is left, and not where there’s no land left.