Hot Real Estate Investment Destinations of Kolkata

Mid-to-long-term residential investment potential in some of the areas in Kolkata is good in terms of appreciation of capital values and resale purposes, says Surekha Bihani, Head – Transactions (Kolkata), Jones Lang LaSalle India.

Rajarhat- New Town

Rajarhat has several factors going for it in terms of real estate market drivers. It enjoys good road connectivity with Eastern Metropolitan Bypass and Belgharia Expressway connecting it to southern and northern parts of the city. 

Netaji Subhash Chandra Bose International Airport is close to Rajarhat and is well-connected to the submarket.
Currently, work on metro railway is in progress which can connect Rajarhat to the airport as well as to the southern part of Kolkata city. Work on another metro route is also in progress connecting Salt Lake with central Kolkata and Howrah.

This submarket has witnessed interest from various national and international developers such as DLF, Unitech, Tata Housing, Shapoorji Pallonji Group, Keppel Magus, etc. for residential projects development. In addition, regional developers like Shrachi Group, Belani Group, Shrishti Group and Bengal DCL are also present with projects.

Present Scenario

• Commercial: The average capital values for commercial spaces are in the range of INR 3,300-3,600 per sq ft and rents are within the range of INR 30-35 per sq ft per month. We expect the rents to increase by about 15% in the next 5 years.
  
• Residential: The average capital values and rental values are on the higher side in the planned part of New Town when compared to the surrounding areas of Rajarhat. The capital values in New Town are INR 3,300- 5,700 per sq ft and the rental values would be INR 9,000-15,000 per month for a 2BHK apartment (1,000 sq ft). The capital values in the surrounding areas are in the range of INR 2,500-4,700 per sq ft and the rents are within the range of INR 7,500-12,500 per month for a 2BHK apartment (1,000 sq ft).

Maheshbathan

Mahesbathan is at a location between Salt Lake Sector V and New Town. It enjoys the same connectivity features as Rajarhat. This location is coming up in a good way in recent past due its locational advantage.

Present Scenario

• Residential: The average capital values and rental values Maheshbathan are INR 4,100- 5,000 per sq ft.

EM Bypass- Park Circus Connector

EM Bypass and Park Circus Connector have good connectivity to not only the CBD but also the PBDs (Peripheral Business Districts) of the city. Currently, work on metro railway is in progress which can provide better connectivity to the airport. In addition, work on flyovers and widening of EM Bypass are under progress, with the BRTS system ready to be implemented in the near future. A lot of good commercial and residential projects are coming up in this area.

Present Scenario

• Commercial: The average capital values for commercial spaces are in the range of INR 9,000-11,000 per sq ft and rents are within the range of INR 70-80 per sq ft per month. We expect the rents to increase by about 25% by the next 5 years.
• Residential: The average capital values and rental values in this area. The capital values are INR 6,500- 11,000 per sq ft and the rental values would be INR 20,000-30,000 per month for a 2BHK apartment (1,000 sq ft).

Overall Outlook

The mid-to-long-term residential investment potential in these areas of Kolkata is good in terms of appreciation of capital values and resale purposes. Within a period of 3-5 years, social and civic infrastructure would also develop sufficiently to boost prices. Commercial properties, which are big ticket investments, would also be good over the long term of 5 years or more, with satisfactory appreciation of rents very possible.