Kolkata developers eye other cities on slowdown blues
Aug 13, 2013
Source : The Hindu

Delay in receiving clearances, long turnaround time (for projects) and other inherent risks are some reasons for venturing outside the State.

At least five major developers have firmed up plans for entry in Chennai, while Raipur, Bhubaneshwar and Ahmedabad are the other alternatives.

Harsh Patodia’s Unimark Group, Nandu Belani-controlled Belani Housing Development, Sushil Mohta’s Merlin Group, Pradeep Chopra’s PS Group and the Space Group are planning to enter Chennai.

Merlin is also firming up plans for entry in Raipur and Ahmedabad.

“The signs of a slowdown in Kolkata are imminent. Over the last one year there has not been any upward price movement despite increase in demand. Commercial space off-take has gone down too,” Nandu Belani of Belani Housing Development Ltd told Business Line.

Belani has over the last one year set up an office in Chennai followed by zeroing in on a plot. He plans to develop a residential project. Merlin too is eyeing a residential project in Chennai.

According to Harsh Patodia, President (CREDAI Bengal), apart from expanding operations, the need to de-risk investments – i.e. having more offerings outside a single city – is also a reason. The best bet would be to enter new markets that have similar dynamics as Kolkata.

Chennai, which has moderate presence of private equity players and investors, relatively stable price movement and upcoming infrastructure, along with demand for apartments, offers the best alternative.

Other places such as Ahmedabad have a faster turnaround time and Raipur and Bhubaneswar have fewer local developers. As such these States have come up as logical alternatives.

Local Tie-Ups

“In the southern States, people identify with local developers. Many of us are entering into tie-ups with a local player in the region,” Patodia said.

Patodia’s Unimark Group is in final discussions with a prospective local partner for its Chennai entry. Kolkata’s Space Group too has entered into tie-up with Chennai’s Olympia Group for joint-development.


Market sources, meanwhile, indicate that over the last one year, growth in Kolkata has been stunted. A prime indicator is the price (of apartments).

Till April, the average per sq ft price in the city stood between Rs 3,000 and Rs 5,000, a stable price that has neither moved up or down.

“Developers have been taking a hit on their margins. They are unsure of unsold stock if they opt for new projects. Price is unlikely to move up with the uncertainty in the market,” a developer said.

Delay in obtaining clearances and non-withdrawal of the Urban Land Ceiling Act leading to non-availability of land; followed by increase in registration fees and property valuation; have adversely impacted developers. Large projects are on the back-burner.

Latest Realty News

Iconic twin towers may come up in Rajarhat in Kolkata
Aug 09, 2013
KOLKATA: The iconic twin towers of the World Trade Center (WTC) that dominated the New York skyline till September 11, 2001, had 110 storeys each. Kolkata may soon boast its own WTC twin towers, though each will only be 20 storeys high.
Jay Shree Tea plans to enter realty biz
Jul 31, 2013
KOLKATA: B K Birla group outfit Jay Shree Tea & Industries Ltd is looking to leverage its land bank to foray into real estate. However, the plans are still in a nascent stage.
Tax assessment onus now on home owners in Kolkata
Jul 09, 2013
KOLKATA: The procedure for property assessment is changing. In a step to put an end to the existing system, where the Kolkata Municipal Corporation makes general revaluation of properties every six years, the civic body now wants citizens themselves to give details of their houses/flats in a bid to make the assessment transparent.
In Singur, a different kind of discontent brews now
Jul 07, 2013
SINGUR (HOOGHLY): “We don’t know what will happen in the Court. An early resolution is welcome. Even if the land is not returned to us, I would be happy with higher compensation, at current market rates,” says a land loser at Singur who does not wish to be identified as he is now a Trinamool activist.
Property for Rs 20-40 lakh available in Kolkata
Jun 26, 2013
KOLKATA: Are you planning to invest Rs 20–40 lakh in Kolkata? Rajarhat is one locality you can opt for. Property in this price segment is easily available in Rajarhat and in demand by 40 per cent of people living in Kolkata.
CII: Emerging investment hotspots
Jun 25, 2013
DELHI: India has its own unique and integral complexities and business is not an exception to it. Corporations strive for increased efficiency and productivity amidst these complexities. Real estate is an integral ingredient in the formation and growth of all businesses and steadily maturing into a big business itself.
Buying a property just got a bit more cumbersome
Jun 25, 2013
MUMBAI: A common saying goes, to know "stress", organize a person's marriage or endeavor to build a house. Consider the various factors which affect the decision on the purchase or building of a house, they range from vastu, legal documentation, anticipated appreciation in value and maybe even the whims and fancies of the relatives. Clearly, factors which may cost a common man, seeking to obtain a roof over his head, many a nights sleep. Well, thanks to the Finance Act, 2013, the stress has been
Dissecting The Role Of Real Estate Regulator In India
Jun 25, 2013
KOLKATA: The Central Government Cabinet approved the Real Estate (Regulation & Development) Bill on 5 June 2013. The aim of the bill is to create a Real Estate Regulatory Authority and an Appellate Tribunal that will act as a watchdog for the housing sector, primarily towards protecting consumer interests while creating an alternative redress mechanism for any disputes that may arise.
Bangkok cheapest office location in Asia; Hong Kong most expensive
Jun 25, 2013
BANGKOK:Bangkok was the cheapest city for office rents in Asia this year, while Hong Kong was the most expensive, an international property consulting company said on Monday.
CREDAI bats for realty reforms with Girija Vyas
Jun 24, 2013
DELHI: Praising the Union Government’s efforts towards real estate reforms, realtors’ apex body Chairman Lalit Jain expressed the hope that the new Housing and Urban Poverty Alleviation Minister Ms. Girija Vyas will continue with the unfinished task of her predecessor Mr Ajay Maken.

Latest Realty News Of State

Realty Talk's