Kolkata suburbs witness rise in property rates

Abhishek Law Kolkata | Updated on December 09, 2017

A child looks at a model of housing projects during a home expo in Kolkata (file photo).

Big-ticket developers, lower land prices driving realty push

It was expected that the price of apartments in the fringe, or peripheral areas, of Kolkata would ride piggy back along the Metro Railway network. But areas which do not fall along the Metro routes or are dependent on a suburban railway system are now witnessing a steady rise in real estate prices.

Towns such as Uttarpara or Konnagar (around 40 minutes’ drive from Kolkata), north of the city, and Sonarpur and Rajpur (some one-hour drive to the South East) – that are still dependent on the suburban transport system – are witnessing a steady increase in supply of condominiums.

According to market sources, these suburbs have seen a 25 - 30 per cent rise in property prices over the last one year.

“In the last one year, property prices in the suburbs have moved up by an estimated 15 - 20 per cent,” Manish Mehta, Vice-President, IndiaHomes, a real estate advisory company, said.

According to Mehta, Kolkata had been one of the slow-movers when it came to infrastructure development in fringe areas. The National Capital Region and Bangalore have seen a much faster uptake of properties in the periphery compared to Kolkata.

The entry of big ticket developers (from Kolkata) too has led to an appreciation in real estate value.

Big launches

Once dismissed as non-lucrative areas, these areas are now witnessing a steady inflow of big realtors. Lower land prices compared to the city and an available catchment area due to closed factories remain key factors.

Along the northern fringes, RDB Realty and Infrastructure is already carrying out development in Konnagar. Kolkata-based Unimark Group will launch its 500-apartment (for mid- and premium segments) project (Unimark Riveria) in Uttarpara. Keventer’s already has a project in Rishra.

Accordingly, rates along Uttarpara and Konnagar at present stand at Rs 2,500–4,000 per sq foot ; in some cases, more or less at par, if not higher, than some areas south of Kolkata.

South Kolkata fringe areas, such as Sonarpur, Rajpur, Baruipur, are commanding a price of around Rs 2,750 – 3000 per square foot .

Backed by an announcement for extension of the EM Bypass (connecting north and south Kolkata), Narendrapur witnessed an appreciation in price. It now commands price of around Rs 3,000-4,000 a sq ft. Kolkata-based Rajwada Group has announced the setting up of premium condos there.

“Big ticket investments along fringe areas have often not been successes because of infrastructure issues,” said Mayank Saksena, Managing Director, Kolkata, Jones Lang LaSalle.

Rising land prices

According to Shveta Jain, Executive Director – Residential Services, Cushman and Wakefield, land prices has seen a significant upward movement in the last 3 years. Many developers are looking to acquire land in order to aggregate them for future development.

Market sources admit the speculation over land prices has led to a substantial increase in property prices here. There has been a 50–60 per cent rise in land values at these peripheral locations. Perhaps, this explains why one cottah (less than an acre) of land in Garia or Joka commands Rs 15-20 lakh.

Published on February 17, 2013

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