Over the past few decades, Kolkata, the ‘city of joy’, has witnessed significant infrastructure development and redevelopment. Now, with the real estate market in the main city area reaching a saturation point, fresh developments are taking place along the city’s boundary. The development of the metro and improvements in the road connectivity, have given a fillip to these peripheral areas.
“The realty market in Kolkata, is witnessing a steady recovery with certain locations, mainly in the periphery, spurring the demand for residential housing,” asserts Rajeeb Dash, AVP, sales and marketing, Tata Housing Development Company Ltd. “Of these, are Rajarhat, BT Road and Chandpur, which offer quality and luxurious living along with fast-growing civic and social infrastructure,” he adds.
Experts point out that Rajarhat is gaining prominence, owing to the rapidly growing IT sector in the area. This area blends history with modern amenities, making it a sought-after location for home seekers in Kolkata.
Upcoming property destinations
“Most of the development, is concentrated towards eastern Kolkata. New Town, Rajarhat, EM Bypass and Mohisbathan, are a few of the upcoming residential destinations,” explains Surabhi Arora, senior associate director – research, at Colliers India. “The key demand driver for this area, is its proximity to commercial areas, such as Sector V. The road infrastructure is well-planned and metro connectivity, is also proposed in this area. Various flyovers provide easy connectivity with the CBD. Moreover, a few locations in south Kolkata, such as Behala, Narendrapur, Kasba, Tollygunge and Garia, cater to the mid-segment home buyers. These areas are witnessing demand from local end-users,” Arora elaborates.
Who should buy?
Interest rates on home loans have reduced, while property prices have also rationalised, in last couple of years. Thus, it may be the right time for investors as well as end-users, looking at a long-term investment, to buy properties in these upcoming locations.
According to experts, most of the mid-segment projects in these locations, are available at a price range of Rs 3,300-4,500 per sq ft.
There is a good supply of properties, in the peripheral areas such as Rajarhat and Joka. With IT and ITeS businesses flourishing in the area, the demand for real estate is expected to increase in the coming years. Moreover, the realty market in Kolkata has already witnessed subdued growth in the last few years and there is very less downside risk left now.
Benefits of investing in properties around Kolkata’s periphery
- Property prices are recovering, after a period of sluggish demand.
- Properties are available at discounted rates, with attractive prices on ready-to-move properties.
- Work is in progress, for providing metro connectivity to areas like Rajarhat.
- Road connectivity to Kolkata’s peripheral areas is good.
- The region has 24-hour water and electricity supply.
Stamp duty and registration charges for properties in Kolkata
|Property Location||Value > Rs 25 Lakhs||Value < 25 Lakhs|
|a||Corporation (Kolkata/Howrah) Area||7%||6%|
|b||Municipal Corp/Municipality/Notified Area||7%||6%|
|c||Other than those included in clause (a) or (b)||6%||5%|
|Data taken from wbregistration.gov.in, as on 18th May 2016|
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