The Hindu Business Line : ‘Land prices in Kolkata likely to stabilise at current levels’

The scenario
Land prices in Kolkata are still low when compared with the rest of India.
With industrialisation happening in the State, land prices have also increased in the last few years. In the short to medium-term prices are likely to remain stable.

Somasroy Chakraborty

Kolkata, Oct. 10 Land prices in Kolkata are not likely to go up in the short to medium term and are expected to stabilise at the current levels. However, no major price correction is expected due to high demand for housing and residential apartments in the city.

“I don’t see prices going up any further. The last two years have seen land prices in the city going up significantly. I think it has reached a saturation point and would stabilise at the current levels,” Mr Harshavardhan Neotia, Chairman, Ambuja Realty Development Ltd told Business Line. According to Mr Sachchidanand Rai, Managing Director, Eden Realty Ventures, “The land prices in New Town Rajarhat has doubled or trebled in last two to three years. Supply in that region has also increased manifold. Land prices in areas under Kolkata Municipal Corporation have also gone up and are not expected to go up significantly in the medium-term.”

“However, prices in areas under Kolkata Municipal Development Authority still remain very attractive and huge the demand for housing may lead to a marginal rise in prices in those regions,” Mr Rai added.

“Kolkata has been slow in catching up when compared to cities like Bangalore and Hyderabad. Land prices in Kolkata are still low when compared with the rest of India. With industrialisation happening in the State, land prices have also increased in the last few years. In the short to medium-term prices are likely to remain stable,” Mr Rahul Todi, Managing Director, Bengal Shrachi Housing Development Ltd, said.

Rentals

Even rentals for commercial office space in the city are also likely to remain stable. “Rental values in the suburbs of Salt Lake and Rajarhat are expected to remain stable in the short term. The increase in supply with relatively low absorption rates might result in over supply in short term in Peripheral Business District areas,” according to a survey done by DTZ, a global property consultancy firm.

More Stories on : Real Estate & Construction | West Bengal

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page