KOLKATA REAL

ESTATE MARKET
C O M P I L E D BY:
P R I YAN K A S A H A [ P GP M 0 8 ]
E NR O L M E N T N O . 0 1 0 10 80 8 4
G L O B S Y N BU S I NE S S S CH O O L
 Contents
Introduction Residential Overview

About Kolkata as Real

 Retail Overview
Estate Destination

 Kolkata’s emerging IT Office Market

destinations
Overview
Past, Present & Future of
Real Estate Developments Conclusion & Contact
 Introduction
KOLKATA’S REAL ESTATE MARKET IS SET FOR A HIGH
GROWTH PHASE FUELLED BY THE IT/ITES SECTOR
“KOLKATA’S REAL ESTATE MARKET IS SET FOR
TRANSFORMATION, AND PROPERTY WILL PLAY A PIVOTAL
ROLE IN THE CITY’S CONTINUED RENAISSANCE.THE
GROWING IT/ITES SECTOR WILL UNDERPIN STRONG
EXPANSION OF THE OFFICE SECTOR; KOLKATA IS A HIGH
PRIORITY DESTINATION FOR RETAILERS ATTRACTED BY
ITS LARGE POPULATION AND RISING DISPOSABLE
INCOMES; THE RESIDENTIAL MARKET IS EXPANDING ON
THE BACK OF A GROWING IT/ITES WORKFORCE AND HOTEL
DEMAND IS BEING BOOSTED BY CORPORATE BUSINESS AND
TOURISM. THE KOLKATA REAL ESTATE MARKET IS NOW ON
THE RADAR OF LEADING NATIONAL AND INTERNATIONAL
DEVELOPERS, ALL KEEN TO PARTICIPATE IN KOLKATA’S
INCREASINGLY DYNAMIC REAL ESTATE MARKET”.
About Kolkata as Real Estate Destination

Net State Domestic Product :

Kolkata Fact
Rs. 1435 Billion
Sheet Temperature : Winter (12-
Location : 2.82ı N 88.20ı E 27ıc)
City Population : 15 million and
State : West Bengal Summer (24-38c)
Area : 1350 Sq.km. Average rainfall : 160cm.
Language spoken : Altitude : 6 meters
Bengali,Hindi and English Time Zone : IST (UTC + 5 :
Literacy Rate (city) : 81.31% 30)
 The City Spread Out

Garia-Narendrapur in the southeast

Behala-Joka in the south west

Rajarhat in the northeast

BT Road in the northwest

Howrah in the west

 About Kolkata as Real Estate Destination

The City Spread Out

 About Kolkata as Real Estate Destination

Advantage Kolkata
Improved urban infrastructure with strengthened
road networks.
Excellent social infrastructure to attract senior/
middle management talent.
Living cost in Kolkata is the lowest among all major
Indian cities.
Buoyant economy,flourishing IT/ITes sector,
banking and financial, retail sector etc.
 About Kolkata as Real Estate Destination

Kolkata Contributes to GDP

 About Kolkata as Real Estate Destination

SEZ’s in Kolkata
Manikanchan (Gem and Jewellery), Salt Lake
Salt Lake Electronics City
Unitech IT SEZ
Falta SEZ
Wipro SEZ
 SEZs Knowhow

Owing to refusal of the state land and land reforms

deptt.(LRRD) to record the change in status from the
farmland to one eligible for industrial use, the IT
park adjoining the Calcutta Leather Complex in
Bantala has become a dumping ground for
pollutants.
The IT sector SEZ and Biotech Sector at Panagarh,
Bardhaman district is stuck because of slump in
demand
 About Kolkata as Real Estate Destination

Construction Investment in Kolkata

 About Kolkata as Real Estate Destination

Average Real Estate investment in Kolkata

About Kolkata as Real Estate Destination

Market Potential Value

MPV Share %
20
16
12
8
4
0
ra .P .B P I T A .P
as
t U A. H A K M
ar
W EL JR T A
D
ah GU N
A
M AR
K
State wise market Potential Value Share
 Advantage Kolkata

Cost of Living &Market Potential Value

Kolkata has the highest market potential value share

among the states of India

Living cost in Kolkata is the lowest among all the

major cities in India
Past, Present & Future of Real Estate Developments

Transformation in the last five years

Several sizzling malls with multiplexes- City Centre
in both Salt Lake and Newtown, Mani Square at EM
Bypass, South Citymall, Forum at Elgin Road.
Salt Lake’s Sector V has emerged as a happening
IT/ITes destination.
More than 8 Flyovers have been added for reducing
traffic congestion at key junctions.
Property values in Kolkata have risen at the
fastest pace among Indian metros since 2007,
according to the National Housing Bank’s (NHB)
Residex—an index of property prices. Property values
in Kolkata rose by an average of 16.8% while those in
Bangalore fell by 15.6% in the period. Fewer
speculative deals and lower base prices saw the
eastern Indian metropolis outpace hotter property
markets such as Mumbai and Delhi, where property
values rose at a comparatively sedate average of 7.5%
and 7.3%, respectively.
Present status
 Past, Present & Future of Real Estate Developments

Development for the next five years

A boom in real estate sector across the country has not left Kolkata
behind as a number of upcoming townships in city suburbs are
attracting investors and mass housing complexes to some untapped
suburbs.

According to estimates by the Confederation of Real Estate Developers

of India, in the next five years 250 million sq feet will be
added to greater Kolkata, requiring an investment Rs 37,500
crore. Rajarhat in the north-east, Dankuni in north-west, Howrah in
the west, Diamond Harbour road beyond Joka and Batanagar in the
south-west and the Garia-Narendrapur stretch in south-east are areas
which will see more than 50 per cent price rise in the next one year,
said real estate sector sources.
Past, Present & Future of Real Estate Developments

Up Coming new townships

PROJECT SIZE
Kolkata west int. 390 acres
city
Batanagar 262 acres.
Dankuni 5000 acres.
Unitech 150 acres.
 Past, Present & Future of Real Estate Developments

Mega Projects
A consortium of Salim and Ciputra groups is now
building an integrated satellite township, Kolkata West
International city, across 390 acres with 6,100
bungalows, four residential towers, three IT parks, a
13-
acre club, a 200-bed hospital, two schools, shopping
malls and entertainment zones in Howrah at
aninvestment of $330 million.
Mega Projects
A new satellite township is coming up at Dankuni
(about15 km. From Kolkata) and the project will
start in theyear 2007 covering 5,000 acres of land
and expected tobe completed by 2011.
A township in Batanagar on a 262 acres of land will
bedeveloped by River Bank Holdings at the cost of
Rs 1,500crore. Apart from various residential
formats thetownship will be slatted for a 300-500
bed hospital, aschool an industrial park, hotel, golf
course and retailzone.
An IT-cum housing project,named Uniworld City
promoted by Bengal Unitech Universal, collaboration
between real estate major Unitech Ltd. and Universal
Infrastructure Ltd. of Indonesia is coming up on 150
acres of land at Rajarhat New town
 Kolkata’s emerging IT destinations

Salt Lake & New Town

 Kolkata’s emerging IT destinations

Technopolis, a huge IT park has come up in Kolkata's Salt Lake's Sector V region with an
area of 6.75 lakh sq ft. It will be the world's first real estate project to be registered under the
United Nations Framework Convention (UNFC) on Climate Change as a clean development
mechanism project

Royal Indian Raj International Corporation (RIRIC), an NRI group, is going to invest $1
billion in Indian real estate, which is going to be the biggest FDI in Indian real estate aimed
to develop large scale commercial and residential township in Kolkata along with other
metropolises.


Unitech, world's one of the top 50 real estate developer is developing a 100-acre residential
project called "Uniworld City" which is only 10 minutes to Dumdum Airport. Unitech is also
developing a 50-acre IT project.

The state government announced plans earmarking 500 acre for an IT-cum-Biotech park
near the city airport as part of a Rs.5, 000-crore program to upgrade industrial infrastructure
 Kolkata’s emerging IT destinations

Salt lake & Rajarhat :

Rajarhat project, the new IT hub of Kolkata will have retail stores and entertainment
facilities and a 5, 00,000 sq. ft open-air landscaped podium, Touted to be the largest IT
Park in Kolkata, Rajarhat spans an area of 1.3 million sq. ft and can accommodate
20,000 executives.

Wipro, which set up a sprawling 17 acre campus in Kolkata's Salt Lake is now planning
to get another 50 acre plot in Rajarhat, the proposed IT hub in east Kolkata.

Major IT companies such as Satyam Computers, ITC InfoTech, HSBC Electronic Data
Processing India (HDPI), ICICI One Source and GECIS will set up their centers in the
city shortly.

Major Real estate developer DLF has developed an IT park in Kolkata in Rajarhat area
with a super area of 1.3 million sq. ft. and is now largely operational.
 Kolkata’s emerging IT destinations

Major Developments - IT / ITeS Sector

PROJECT SIZE (million sq ft)

Unitech 5
DLF 3.5
Videocon-Salarpuria 3
Ascendas 2
Godrej Waterside 1.8
KeAppal land 1
Ambuja –RMZ 1
Bengal Inteligent Park 0.75
Infinity Waterside 0.7
Technopolics 0.67
 Residential Overview

Residential Values –(Rates are given in Rs per Sq. ft)

EAST
Name of the area Rate(Rs Per sq ft)

Salt Lake 1800-2200

Beleghata 1500-2000

EM Bypass (Cent) 2000-3000

New Town 1300-2500

Residential Values –(Rates are given in Rs per Sq. ft)

SOUTH WEST

Name of the area Rate(Rs Per sq ft)

Alipore 3500-6000

Behala 1100-1300
Residential Values –(Rates are given in Rs per Sq. ft)

SOUTH CENTRAL

Name of the area Rate(Rs Per sq ft)

Queens Park 4000-6000
Sunny Park 4000-6000
Gurusaday Road 4000-6000
Ballygunge Cir.Rd. 4000-6000
May Fair Road 3500-5000
Ballygunge Place 2200-3000
Gol Park 2300-3500
Gariahat 2500-4000
Rashbehari 2200-3000
Residential Values –(Rates are given in Rs per Sq. ft)

CENTRAL
Name of the area Rate(Rs Per sq ft)

Park Street 3500-5000

Loudon Street 3000-5000

Theatre Road 3000-5000

Camac Street 3500-5000

Residential Values –(Rates are given in Rs per Sq. ft)

NORTH
Name of the area Rate(Rs Per sq ft)
Jessore Road 1300-1700
VIP Road 1200-1600

Madhyamgram 950-1200

Shyambazar 1500-1900

B.T.Road 1200-1800

Kankurgachi 2200-2800
Residential Values –(Rates are given in Rs per Sq. ft)

SOUTH

Name of the area Rate(Rs Per sq ft)

Lansdown Road 2600-4000

Bhawanipore 2300-3000

P.A.Shah Rd. 1900-2500

Jadavpur 1600-2000

Tollygunge 1400-1700
Residential Values –(Rates are given in Rs per Sq. ft)

SOUTH-EASTERN
Name of the area Rate(Rs Per sq ft)

Garia 1000-1500

Narendrapur 1100-1400

R.B.Connector 1500-2000
 Residential Overview

Key Players in Residential Developments

 Residential Overview

Impact on residential prices post recession

Sharp decline in interest rates i.e. to 9% from 12% on home
loans upto Rs. 30 lakh has improved the affordability factor of
house buyers.
Prices of residential units have also fallen by up to 30% since
the last year.
In 2009, the top 9 listed real estate firms posted a 76% dip in
profit and 57% fall in sales in the June quarter, prompting the
revival in demand could improve things, especially in light of
a government subsidy for loans taken for affordable housing,
but warned that a possible price war between players sitting
on huge inventories could spoil the scene.
DLF reported a 79% decline in profit and 57% slide in sales for the
June quarter.2009. According to DLF vice chairman Mr. Rajiv
Singh“There has been a reasonable revival in demand for homes not
just in low-cost or mid-income,but also for high-end ,”.
Unitech, reported 63% decline in profit with sales down by half.
“Property prices have come down and so has the interest rate. That’s
why home buyers are again looking at the property market ,” said R
Nagraju, head of corporate planning at Unitech. The firm is targeting
to sell a total of 30 million sqft of space this fiscal.
 Other realty players Indiabulls Real Estate, Parsvnath, Omaxe, HDIL,
Akruti, Sobha and Purvankara too have reported decline in profits up
to 95% for the June quarter. Parsvnath chairman Pradeep Jain said
the worst was over for the sector and demand had started picking up.
 Residential Overview

Upcoming Residential
Residential Overview
 Retail Overview

Retail Overview
Kolkata is a key hub for commerce of Eastern
andNorth Eastern states of India. Kolkata
startedcatching up with the rest of the country on the
retailand restaurant, mall and multiplex count. With
thesuccess of malls like Forum, 22 Camac Street,
MetroPolis, City Center, mall mania has suddenly
gripedthe city. Big chains dropped anchor and
biggerchains scrambled to draw up city plans.
McDonald’srecce confirming big Kolkata plans.
 Retail Overview

Kolkata Retail RE – Zonal Segmentation

Park Street, Camac Street, Elgin Road zone

Gariahat, Rashbehari Avenue zone

EM Bypass, Ultadanga,VIP Road, Salt lake zone

 Retail Overview

Major developments – Mall

NAME OF THE MALLS AREA (Lakh SFT)
South City Mall 7
RPG Godreg 4.5
City Centre 2 4
Mani Square 4
Avani Reverside 4
Avani Renaissance 3
Lake Mall 2.5
Aster Mall 1.5
Block by Block 1.8
Home Land 1.2
 Indian Retail Mall Overview

Current and Future Major Retail Mall Development

Mall supply in 2009 fell short by 60%, as only 5.7 million sq.
ft of space was delivered across major cities in India,
according to the annual retail report by real estate consultant
Cushman and Wakefield Inc.
Around 9 million sq. ft of expected mall supply for the year
was deferred to the future, due to poor demand from
retailers, says the report. Of the proposed 44 malls at the
beginning of the first quarter (January-March), about 18
were delivered by the year-end. The overall vacancy rates for
the major cities as of December was 17% compared with a
16.7% vacancy rate in December last year.
 Retail Overview

The retail sector in Kolkata demonstrated signs of revival in 2Q 2008

with the mall development exhibiting significant activity since the
beginning of 2008. This quarter saw an addition of 370,000 sq.ft. of new
mall supply with Mani Square becoming operational on the EM Bypass.
South City Mall, which became operational in the last quarter in South
Kolkata, registered rental appreciation of about 6% over 1Q 08. The
presence of major retail brands and high operational occupancy has
triggered this northward rental movement.
Rajarhat witnessed more than 50% escalation in mall rentals over the last
quarter. A major determinant of the attractiveness of Rajarhat is the
relatively lower price points as compared to other malls in the city, in
addition to the potential catchments from both the residential and
commercial establishments in the offing. Of all the major mall projects
nearing completion in Kolkata, about 80% of developments are
concentrated in the Rajarhat micro-market alone.
 Retail Overview

Impact on retail leasing prices post recessions

Location Rentals Rs/sqft//month
Camac Street 100-120
Theatre Road 100-120
Loudon Street 80-100
Middleton Street 80-100
Park Street 80-90
Chowringee 100-125
Sarat Basu Road 110-130
Elgin Road 100-120
Gariahat Road 100-140
Rashbehari Avn. 90-110
Kakurgachi 80-90
Salt Lake Sec v 90-100
 Office Market Overview

•
CBD
Kolkata office market largely comprises the CBD of
DalhousieSquare, Park Street, Shakespeare Sarani, Camac
Street, AJCBose Road and the suburban business districts
(SBD) of SaltLake Sector V.
Park Street, Shakespeare Sarani, Camac Street area are
nowemerging as the new CBD with a number of new offices
L&T Chambers, Duck back House, FMC Fortuna, Jasmine
Tower,Lansdowne Tower, Park Plaza, Krishna Building at
ShakespeareSarani, Camac Street, Park Street, AJC Bose
Road are Kolkata’sprime office buildings
 Office Market Overview

SBD
Sector V is Kolkatas SBD, which has emerged as afavoured
destination for IT & ITES companies. NewtownRajarhat is a
developing SBD. All major national andinternational IT &
ITES companies like, TCS, IBM, PWC,Cognizant,
Computer Associates, WIPRO, NIIT havestarted their
operations here.
During 2001-04, Kolkata was the fastest growing STPcenter
within India, with exports from the city STPclimbing 70 %
within this period. Exports from Kolkata’sSTP increased to
Rs. 1,837 crore in 2004-05, a rise ofover 50 % compared to
2003-04.
 Office Market Overview

Rentals in High Street Location

PRIME MAIN STREET RENTS – 2Q08
Park Street 268 6.30 4.02 0% 15%
Camac Street 268 6.30 4.02 0% 15%
Elgin Road 233 5.50 3.50 0% 27%
Theatre Road 233 5.50 3.50 0% 27%
 Office Market Overview

Key Office Space Occupiers

The prominent main streets of Park Street, Camac Street, Elgin Road
and
Theatre Road witnessed stabilization in rental values over the last three
quarters. Lack of new supply and attainment of high price points were
the
decisive factors in this case. Leasing activities, however, continued with
a
few prominent brands showing keenness to be present on the main
streets to leverage the signage opportunity and reinforce their brand
presence. The entry of brands like Dockers and Planet M, seeking
presence in the high street stands testimony to the confidence of the
retailers in the city and in the eastern region.
Global real estate solutions firm Cushman & Wakefield, which
researched on office space, expects the current situation to
persist, triggering a further rise in vacancy levels. “There will
be a prolonged situation of over-supply unless significant
space uptake occurs in the market. Due to the current trend of
low demand, there may be deferrals in certain projects to later
periods,” a researcher said. Rentals of office space for both
corporates and IT/ITeS firms in Rajarhat have nosedived by a
whopping 31% in the July-September 2009 against the
corresponding period last year. In Salt Lake, IT/ITeS space
rentals has crashed by 29%. Corporate space in Sector V is
slightly better off with rentals taking a 22% dip.
Most of the prominent real estate developers said demand
for commercial property in Kolkata was rising and the
future looked better than what it was six months ago.
Santosh Rungta, president, Confederation of Real Estate
Developers’ Associations of India (CREDAI), said, “We
expect the commercial real estate sector to revive in six to
eight months. IT companies are reviving and demand for
office spaces will gradually pick up. The overall industry
has started recovering from the economic slowdown and is
preparing to resume operations on a larger scale.
Therefore, it seems likely that demand for office spaces will
rise according to requirements.”
 Office Market Overview

Key Players in Retail Developments

 Office Market Overview

Impact on office leasing prices post recessions

Conclusion
Contact