Kolkata as a real estate destination has not really got the investor attention compared to Bangalore and Mumbai, both hot destinations for young investors with disposable incomes. But of late, there has been a renewed interest in this city, which until 1947 was the national capital for style, culture, science and education.
The interest of investors in Kolkata real estate was rekindled for a number of reasons. Let’s take a look at how it evolved. Kolkata was the premier city in India and then lost out to Mumbai; however, the 21st century saw Kolkata’s economy bloom with liberalization and changes in the economical policy of the West Bengal government and this resulted in large investments into retail, hospitality, infrastructure and real estate.
Information Technology (IT) was to become the engine of growth for Kolkata as it did for other Indian cities. By the late 1990s the IT sector in Kolkata grew at 70 % per annum- twice the national average. Other factors which have contributed to the growth of Kolkata real estate are the Government of India’s “Look East” policy, the opening of the Nathu La mountain pass in Sikkim on the border of India and China to international trade and the fact that South East Asian countries are looking at Indian markets for expansion. All these factors have worked at improving the economy of this city, which is often viewed as a city of power cuts, labour strikes and slums.
More people are looking to invest in Kolkata real estate now than ever before. A great majority of the buyers are end users and are buying apartments in Kolkata or villas for their own use. The customers are mainly non resident Indians and residents of nearby towns who would love to have a place in the metro. Another trend which has been witnessed in the city is that most buyers are looking for mid segment housing.
Kolkata builders are now developing projects outside the city limits. This was not possible earlier as commuting to the city’s business districts would have been a problem. Not any more as the city’s transportation and communication facilities have not just improved they are also cheap. Connectivity is the key to price rise in this city. Prices are expected to go up in areas where the metro rail has reach and also in areas where the metro extensions have been announced.
Many of the developments have happened in various suburban areas of Kolkata: such as BT Road which lies to the north of Kolkata, in the extreme east there is Chandpur Champahati, in the south there is Baruipur and in the west there is Howrah. Hence, very good homes have now mushroomed in these suburban areas. The prices are affordable due to the low cost of plots in Kolkata, various commuting facilities and the overall economic crunch giving a chance for anybody to invest in those areas. So, this is probably the best time to invest in a Kolkata property. Not only because, the prices are low due to the above factors, also because even in an economic meltdown property investments are always a safer bet. And this is why Kolkata builders have zeroed in on these areas.
The other areas which have attracted Kolkata builders are the EM Bypass, Rajarhat and Behala. Once again it is the lower land prices in these areas which have been the prime attraction. The EM Bypass is a 21 km stretch between Ultadanga in the north and the south hub of Kamalgazi. This stretch is witnessing a large number of commercial and residential developments.
