Kolkata Municipal Corporation
KOLKATA: Has EM Bypass fallen from grace when it comes to demand for real estate projects? At least the current trend hints so.
According to sources, Kolkata Municipal Corporation had recently floated a tender for a 6-acre plot in Mathpukur for a residential property. The authorities had expected the plot to generate enthusiasm among buyers and will be leased out for several hundred crores. The authorities were taken aback when not a single realtor responded.
This stands in stark contrast to the 2005-06 period when plots off EM Bypass were sold for a premium. A new record was set in 2005, when the Kolkata Metropolitan Development Authority (KMDA) sold a 6.2-acre plot for Rs 209 crore, or about Rs 33 crore per acre, for a five-star hotel project. The dream run continued in 2006 when KMC sold another 5-acre plot to a private real estate developer for Rs 154 crore, or about Rs 30 crore per acre.
According to state government officials, the real estate market is going through a rough patch throughout the country, but things are expected to pick up soon. "Land is being sold for both residential and commercial projects in places like Rajarhat, New Town and the situation overall in the state will improve soon," a state government official said, adding that the government was working on a plan to develop some new townships across the state.
Realtors felt the area can command a price of Rs 11,000-12,000 per sq ft. "This is a good location and quite a few projects are coming up. Once the Parama flyover is thrown open, it will be a 5-7 minutes' drive to Park Street," said Jitendra Khaitan, CMD of Pioneer Property Management Ltd and a member of National Association of Realtors-India.
Talking about the lukewarm demand, CREDAI Bengal past president Harsh Vardhan Patodia said: "It is a market-related problem that depends on the economic condition."
According to real estate consultancy Cushman & Wakefield, Kolkata is expected to witness the lowest demand, at around 97,300 units across segments, compared to all other metros. The majority of demand, which stands at 53%, is likely to be for LIG units, followed by 34% for MIG and 13% for HIG units. In terms of estimated demand and supply in the real-estate sector in the period from 2014 to 2018, Kolkata stands at sixth position in the country, behind Ahmedabad, Bangalore, Chennai, Delhi NCR and Hyderabad.