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WAREHOUSELANDRESIDENTIALRETAILOFFICE
Values trends & opportunitiesin the Kolkata real estate market
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After recovering from the implications of the global financial
turmoil in 2009, the real estate market across India began to
show a sign of turnaround from the beginning of 2010 as low
interest rates, availability of funds, introduction of affordable
homes, contributing to a faster growth.
With strong rise in sales as well as new launches seen at mid-
2010 on the backdrop of improving consumer confidence,
supported by Indias surging economy which has been growing
at an 8.9% pace for the past three quarters, Kolkata real estate
market continued its strong growth trajectory till the end of 2010.
Although, the recent effect of gradually increasing interest rates
and prevailing high inflationary pressure is posing a little threat tothe growing real estate demand, but the general outlook for the
Kolkata property market will remain fundamentally strong and
the current upswing is likely to be continued in medium to long
term.
Best wishes,TEAM NK.
2010 Year End Market Review
DEAR FRIENDS,
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2010 Year End Market Review
Office ............................... 4
Retail ............................... 6
Residential ............................... 9
Land ............................... 13
Warehouse ............................... 14
CONTENTS
About Kolkata Market Report
The2010KolkataMarketReport is a unique tool that reviewsand summerisesthereal estate activities of thepast year on
major locations across theKolkata market. As a reference
tool, it reviews values, economies, social factors and other
conditions that impact a market.
Each analysis was completedby theNK Realtors professionals
whoareexpert at reviewingthe local market, identifyingtrends
and reportingmarket activity.
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CORPORATE SERVICES
Triggered by the positive economic
sentiment and encouraged by
several significant transactions
Kolkata office market witnessed an
increase in activity throughout 2010.
With a huge talent pool and high quality
infrastructure, Kolkata has become one of
the major private investment destinations
in the country. The State had attracted
over Rs. 8,400 crore investments in
various sectors such as Iron and Steel,
Petrochemicals, Information Technology
and Food Processing etc. in 2009.
Kolkata's IT & ITeS sector is one of the
important driving forces of the state's
economy which employs some 90,000
people. The sector registered 8 percent
growth during the year 2009-2010. IT &
ITeS offices located in the sub urban
areas of Sector-V, New Town and Bantala
are currently driving the majority of office
market demand in Kolkata. The demand
in the IT & IteS sector has got a major
boost in November, this year, when
INFOSYS Indias leading IT companyacquired 50 acres land from the state
government in Rajarhat to build their
campus.
Kolkata office market has expanded
rapidly in the SBD areas in recent years.
Commercial properties available in these
locations have quickly gained popularity
amongst the investors as well as end
users. A wide range of state-of-the-art
office buildings combined with good
infrastructure at extremely reasonable
prices have made these locations popular
as new office destinations to many
occupants other than IT & IteS companies
in recent times. At present, Kolkatas main
IT corridor, Sector-V and New Town are
considered as the most sought-after office
locations in Kolkata. These two locations
have virtually no more vacant land where
IT companies can expand further. After
the introduction of Bantala as a new IT
location by the state government, another
promising new location is coming up at
Nonadanga near Ruby Hospital to cater
to the growing need of IT & ITeS
companies in and around Kolkata. HSBC,
HCL and Rolta India has acquired five
acres of land each from the government
to built their new facilities at Nonadanga.
With the revival of office space demand
from the IT and ITeS sector, Kolkata office
market has witnessed strong buying and
moderate leasing activities over the past
one year where investors have outpaced
the end users. Investors are mainly
buying vacant spaces in the upcomingcommercial buildings located in the
secondary business districts (SBD) of
Topsia, Kasba connector, Sector-V and
New Town. Around 1.8 million sq.ft,
including both lease and outright office
transactions have happened in Kolkata
over the past one year.
With the renewed confidence amongdevelopers, the positive sentiments in the
economy has led to a rise in construction
activity across the city.
The absorption
has been driven largely by the IT & ITeS,
telecom, steel, manufacturing and
engineering sectors.
During the last six months of 2010, CBD
area has witnessed the launch of a
90,000 sq.ft. commercial project by Belan
Group at Woodburn Park and the
completion of Diamond Prestige, a
2,37,000 sq.ft. of commercial building on
AJC Bose Road by Diamond Group,
Topsia has seen the copmpletion of PS
Pace (1,00,000 sq.ft. approx.) developed
by PS group.
Apart from some ongoing large office
projects such as DLF IT SEZ, Unitech
Infospace SEZ, Ambuja Ecospace Phase
II, Videocon E-Habitat, Merlin Infinity etc.in New Town, and Sector-V, Kolkata has
seen the launch of some new office
projects such as Infinity BNKe, Ambuja IT
Park, Mani Twin etc in Sector-V and New
Town in the 2nd half of 2010. Few other
projects such as PS Srijan Tech Park-II,
the 8,00,000 sq.ft. IT Park, a joint venture
between PS Group and Srijan, a 3,00,00
sq.ft project by Space group etc are in the
pipeline.
Approximately 8,00,000 sq. ft. office spaceconstruction was completed in the SBD
markets duringthe lastsix months.
Kolkata office market2010 has witnessed a strong investor interest through out the year with high levels of buying.
Source: NAI NK Realtors Research
Key Office Transactions(Lease) in 2nd half of 2010
2010 Year End Market Review
4
Accenture Infospace New Town 1,90,000
Technopolis ,000
Just Dial Godrej Waterside
DHL Benfish Tower
Hyundai Infinity Benchmark
L&T Sector-V
Sector-V 13,000
Honeywell PS Srijan Techpark Sector-V 11,000
Sector-V 10,000
Salva Resources Ambuja Ecospace (SEZ) New Town 10,000
Sector-V
AN Capital Infinity Think Tank-I Sector-V 5,000
LG Electronics Vishnu Towers Sector-V 4,300
CMC Vishnu Towers Sector-V 4,200
46
8,000
Letse Software & Services Infinity Think Tank-I Sector-V 4,800
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GRADE - A, Office Rental Values
GRADE - B, Office Rental Rates
CORPORATE SERVICES
FORECAST
SBD areas such as Kasba and Topsia areexpected to see a marginal rise in overall
lease and outright values while New Townand Sector-V will likely see a strong rise
in overall lease and outright values in theshort term.
Present downward trend in overall leaserates in the CBD area Is likely to be
continued. However, the outright rate willcontinue to heat up.
Buying activity in the SBD areas are
likely to be more in numbers in the
coming months.
Location Range (Rs/Sq.ft.)
ParkStreet 12,000-16,000
CamacStreet 12,000-16,000
AJCBoseRoad 8,000-16,000
Dalhousie 7,000-10,000
Topsia 8,000 - 9,000
Kasba Xing 7,500 - 8,500
Salt Lake, Sector-V 4,000 - 5,550
Rajarhat, NewTown 3,500 - 4,500
2010 Year End Market Review
5
VACANCYRATES
During the last six months of 2010, overall
vacancy rates in the CBD area remained
unchanged and stayed at around 4%. In
Topsia the overall vacancy rates
decreased from 14% to 13%. In Kasba
Connector Grade-A vacancy rate
increased from 20% to 26%. This is a
result of few new supply has been added
to the inventory, thus increasing overall
vacancy. The highest increase in vacancy
occurred in the New Town. Since mid-year
Grade-A office vacancy increased from
43% to 45% in New Town. Continued
completion of office space in New Town
has resulted in a increase in vacancy
rates. Overall vacancy rates in Salt Lake
Sector-V increased from mid-year from
30% to 33%.
LEASE RATES
During the last six months of 2010,
Kolkatas main CBD area such as Park
Street, Camac Street and AJC Bose Road
has witnessed a decline of almost 7% in
Grade-A office lease rates while the lease
rates of Grade-B office in the same
locations increased marginally except
Camac Street. The current lease rates for
Grade-A offices ranges between Rs 95-
120/sq.ft/month and for Grade-B offices
ranges between Rs 80-105/sq.ft/month.
New Town has witnessed the maximum
Grade-A office lease rate growth (around
16%). There were no changes recorded in
Grade-A office rentals in Topsia. Sector-V
had a marginal growth in overall office
lease rates which is currently hovering
between Rs 40 - 50/sq.ft/month.
Salt Lake New TownD alhousie Topsia
A.J.C. Bose RoadPark S treet Camac S treet
1 2 0
1 0 0
8 0
6 0
4 0
0
2 0
20082007 2009 2010
Q2 Q3 Q4 Q2Q1 Q4 Q4 Q4Q1 Q1Q2 Q2Q3Q 1 Q3 Q3
Proposed P.S. SRIJAN TECH PARK-II at Sector-V
Camac Street
Salt Lake New TownKasba Topsia
A.J.C. Bose RoadPark Street
16 0
12 0
10 0
80
60
40
0
14 0
20
20082007 2009 2010
Q2 Q3 Q4 Q2Q1 Q4 Q4 Q4Q1 Q1Q2 Q2Q3Q 1 Q3 Q3
Current Grade-A and Grade-B Office Vacancy Rate
G ra d e - A O f f ic e V a c a n c y G r a d e - B O f f i c e V a c a n c y
Source: NAI NK Realtors Research
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RETAIL SERVICES
Kolkata retail marketMost of the mall developers in Kolkata have reactivated their mall projects over the pastthree to four quarters.
2010 Year End Market Review
6
On the backdrop of improving
consumer confidence, supported
by the countrys surging economy
which has been growing at an 8.9% pace
for the past three quarters, Kolkata retail
market has experienced a spectacular
turnaround in sales as well as new store
expansions over the last six months of
2010.
The growth has been spectacular in
almost every sectors of organised retail
such as food & grocery, footwear,
consumer durables, furniture, eye wear,watches, mobile & accessories, beauty
care services, health & wellness, F&B,
automobile, entertainment etc. All have
expanded across Kolkata over the past
one year.
Continued success of Future Groups
various retail formats operational in
Kolkata and other tier-II towns have
helped other brands such as Reliance
Retail, RPG Retail, Aditya Birla Retail etc.
to execute their expansion plan in full
gear across all their formats in the last
phase of current year.
In the entertainment sector, Kolkata has
seen some regional players like Priya
Entertainment, Eyelex Films etc. to come
up strongly with their economic format in
2010. Understanding of the local market,
strong hold on regional movies,
reasonable ATP (Average Ticket Price)
etc. are all helping the regional level
multiplex operators to give tough
competition to national level players.
The concept of conversion of old cinema
hall to multiplex has already started in
Kolkata. Hind-Fame, a two screen
multiplex is coming up on closed Hind
Cinema at Ganesh Chandra Avenue in
central Kolkata.
The residences of Salt Lake will see the
opening of HDILs first multiplex
StandaloneTransactionsin MatureUrbanAreas
Mature urban markets have also seen a
number of new stores to come up in the
last couple of quarters. However,
majority of the newly opened stores are
small-format stores.
Broadway shortly in Down Town mall.
Multiplex goers in Kolkata are going to
get the international viewing experience
with the opening of Mexican multiplex
chain Cinepolis within a couple of years.
The Mexican chain has signed their first
property in upcoming Acropolis mall.
The ever expanding food and beverages
sector particularly the restaurant segment
consistently expanded across Kolkata
through out the year. The restaurant
industry showed its buoyancy even during
the recession. All kind of restaurantformat has opened over the past few
months. Amongst them the lounge format
is fast gaining popularity in Kolkata.
A restaurant and lounge bar, Hops has
been operational on a 7,500sqft property
in South City Mall since September, 2010.
Hushh the Resto Lounge and Bar has
opened in South City mall in November,
2010.
Another lounge bar Nocturne has come
up on Theater Road at year end.
The House of Kommons (HoK) a lounge
bar has opened in Salt Lake, Sector V in
October, 2010.
The newest fine-dining addition to the city
is Zodiac, on Loudon Street by
Welcomgroup Kolkata.
News the fine dining restaurant at
Hometown Mall in Rajarhat opened in
November, 2010.
Apart from the opening of Lounge Bar &
Restaurant, Kolkata has seen some local
restaurant chains to expand in various
part of Kolkata over the past six months.
Azad Hind Dhaba opened stores in
Alipore, Baishnabghata Patuli near Garia.
Alibaba another local chain opened up
in Ajay Nagar near Bengal Ambuja
housing project, Gariahat, Chowringhee
etc.
In Kolkata, the early sign of revival was
first set out in the sub urban locations.
Areas such as Garia, Narendrapur, NSC
Bose Road, Raja SC Mallick Road,
Behala, Lake Town, BT Road,
Barrackpore, Sodepur, Barasat, etc. have
witnessed a significant number of retail
space leasing in the past twelve months.
The newly opened showrooms are a
mark of the buoyancy of the Kolkata retai
sector. However, these are mostly smalle
format stand alone properties located on
the ground or ground and first floors
combined.
Increased new and quality supply, low
occupancy cost as well as an overall
improvement in consumer confidence
have helped spur the retail sector in the
suburban locations across Kolkata.
Source: NAI NK Realtors Research
I Core Planet Barasat 25,000
AzadhindDhaba Baishnabghata Patuli 2,500
(app.
Godrej Interio NSC Bose Road 7,000
Mega Mart Lake Town 4,000 Bengal Hyundai BTRoad 3,500 Bata Barasat 3,000
Khadim Garia 3,000
MPJewellers Garia 2,000
HeroHonda NSC Bose Road 1,600 MP Jewllers BehalaTram Depot 1,000
B-18 Chowringhee 25,000 (app.)
Krazy Kebabs N.H. Sarani 4,000 Samsung LeeRoad 4,000
Calvin Klein Woodburn Park 2,500
Tanishq B.B.Ganguly Street 2,500
UrbanGypsy Dover Lane 1,500
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Significant Mall Transactions
Reliance Retail Avani Riverside 1,00,000(app.)
Spencers Retail Axis 50,000
Cinepolis Acropolis 40, 000
Bigbazaar Wood Square 30, 000
Star Mark Mani Square 15, 000
Future Mall Supply
LakeMall LakeMarket Space Group 2,50,000 2011
North City LakeTown Diamond Group 3,00,000 2011
Avani Riverside Howrah Avani Group 3,00,000 2011
SishirKunj Madhyamgram Bengal Shelter 3,00,000 2011
Acropolis Kasba Merlin Group 3,50 000 2012
Varna Parichaya College Street Bengal Shelter 12,00,000 2012
Spencers Galleria Park Circus RPG Group 4,00,000 2012
,
RETAIL SERVICES
Source: NAI NK Realtors Research
2010 Year End Market Review
7
Varnaparichay Indias first integrated book mall at College Street near Sealdah
Forum Court Yard, the extension of
Forum mall located at Elgin Road, has
opened its door in August, 2010. This is
the only fully operational mall that came
up in 2010 in Kolkata. Court Yard has an
impressive list of international premium
brands that include Aldo, Promod,
Mango, Charles & Keith, Black Label,
Benetton etc.
Other international brands such as Jack &Jones, Vero Moda, Only, Pieces, Esprit,
Timberland etc. have also opened stores
in the South City mall, an operational
upmarket mall located on Prince Anwar
Shah Road in South Kolkata.
Apart from being present in malls,
international brands have also started
actively looking at new stand alone
properties coming up in upmarket areas.
Kolkata has also witnessed the opening
of 3,50,000 sq.ft. Axis Mall developed
by Peerless Group at New Town, an
upcoming satellite township in Rajarhat in
April 2010. The mall is now partly
operational and yet to find sufficient
footfall due to lack of potential
catchments in the neighbourhood. The
mall initially started with a 35,000 sq.ft.
four screen multiplex Bioscope and a
3,500 sq.ft. food court Aheli. Bioscope is
the first operational economical format
multiplex that came up in Kolkata by Priya
Entertainment, a local multiplex operator.
Reliance is going to open a 6,000 sq.ft
footwear store Footprint in the same
mall by January 2011. This would be their
first footwear chain store in Eastern India.
As retailers are aggressively looking at
mall spaces with renewed interest,
developers cranes have started swinging
again on various mall projects which were
stalled during the downturn.
With a number of larger lease
transactions by some big retailers in the
upcoming malls, Kolkata retail sector
seems to have managed to move out of
the slow down shadow in the end of 2010.
Kolkata did not witnessed too many large
mall lease transactions in the1st half of
2010. Reliance has finalised a deal with
around 1,00,000 sq.ft. in upcoming Avani
Riverside mall in the 2nd half of the
current year. This was so far the largest
retail space transactions in Kolkata that
happened after the ease of recession
followed by the Spencers 50,000 sq.ft
space uptake in Axis mall. Reliance will
likely house its non-food retail formats,
such as Reliance Digital, Reliance
TimeOut, Reliance Home Kitchen,
Reliance Jewels, Reliance Trends etc. in
the upcoming mall.
Developers in Kolkata have intensified
their construction as well as marketing
activities in projects such as AVANI
RIVER SIDE on Foreshore Road in
Howrah, ACROPOLIS near Kasba
Golpark, SPENCERS GALLERIA at Ami
Ali Avenue in Park Circus, VARNA
PARICHAYA at College Street in Sealdah
over the past couple of quarters.
Approximately 1.15 million sq.ft. of new
mall space will be added in the year 2011
and in the year 2012, another 1.95 million
sq.ft. (approx) mall space would be
added to the greater Kolkata market.
VARNA PARICHAYA, a huge 12,00,000
sq.ft. mall is coming up in College Street
near Sealdah station. The mall will be
spread across nine levels. With two floors
(G+1) fully dedicated for book shops, the
mall aims to become a hub for book
lovers community of Kolkata. A major
tenant at Varna Parichay is Big Cinemas.
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MALL VACANCY RATES
Operational mall vacancies in Kolkata have
declined considerably in the end of 2010
and currently stays at the lowest level. The
overall year on year vacancy rate in the
operational malls has declined to 1.70%
from 2.5% a year earlier.
The City Centre mall at Rajarhat had the
highest vacancy level at around 2.75% and
City Centre mall at Salt Lake had the lowest
level of vacancy with almost 0% at the end
of 2010. Vacancy rates in the South City
Mall and Forum mall were at around 0.20%
and 0.50% respectively in the end of 2010.
MALL LEASE RATES
On account of aggressive retailers drive for
mall space and limited new mall space
supply, average lease rates in the
operational malls as well as in the up
coming malls across Kolkata market have
witnessed an increase ranging between 5%
to 25% in the past two quarters.
In the end of 2010 CBD area malls had the
maximum q-o-q rental growth at around
25%. From October 2009 to the June of
2010, CBD area malls did not witnessed
any rental growth and currently have
rentals in the range of Rs 175-300 / sq.ft. /
month.
The mall lease rates graph on the right
shows an interrupted deep green line from
4th quarter of 2009 to 2nd quarter of 2010
which indicates the mall lease rates in
northern Kolkata. This is because, from the
beginning of 2009 development of all the
planned malls in that part were either
shelved or cancelled which has been on
offer again for the past two quarters of
2010. Current rental rates in north hovers
between Rs 60-120 / sq.ft. / month.
Quarter on quarter mall lease growth rates
in the south of Kolkata, Salt Lake, EM
Bypass and Rajarhat were around 23%,
21%,19% and 5% respectively at end-
2010. Mall lease rates in those areas have
been in the range of Rs (70-250) / sq.ft /
month, Rs (60-225) / sq.ft. /month, Rs (75-
200) / sq.ft. / month and Rs (60-120) / sq.ft.
/ month respectively in the end of 2010.
Q4, 2009 Q1, 2010 Q2, 2010
City Centre-II CityCentre-I Metropolis Mani Square South City Forum Home Land
5%
4%
3%
2%
0%
1%No Vacancy
inCity Centre-I
South E MBypassCBDNewTown Salt LakeNorth
3 5 0
3 0 0
2 5 0
2 0 0
1 5 0
1 0 0
0
5 0
20092008 2010
Q2 Q4 Q4Q1 Q1 Q3Q2 Q2 Q4Q3Q1 Q3
Mall Lease Rates (average price)
2009
New TownEastSouthCentral (CBD) North
2008 2010
Q2 Q4 Q4Q1 Q1 Q3Q2 Q2 Q4Q3Q1 Q3
2 5 0
2 0 0
1 5 0
1 0 0
0
5 0
High Street Lease Rates (average price)
FORECAST
With resurgent demand from the buoyant
retail industry, Kolkata will likely see more
transactions in the coming months.
However, the volume of key high street
transactions likely to be more in the sub
urban locations.
Falling vacancies and rising rentals in
malls will spur new malls in the coming
quarters.
HIGH STREET LEASE RATES
In the last one year key high street lease
rates across locations in Kolkata has
witnessed a slight decline except
Rajarhat. This mainly due to the
slackening demand from the retailers.
Prevailing rentals seems to be high
enough to the retailers to make a store
financially viable in those areas. Rentals
in the CBD area hovers between
Rs 90-200 /sq.ft / month.
RETAIL SERVICES
Source: NAI NK Realtors Research
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RESIDENTIALSERVICES
Kolkata residential market
Kolkata residential market has
witnessed a strong growth interms of sales as well as new
launches over the past four quarters.Increasingly buoyant economic
conditions, low mortgage rates,
kept the market up till the
end of .
As the demand increases from both
owner-occupiers as well as from
investors, properties in all price ranges,
from mass market to luxury, appreciated
over the past two quarters. However,
housing prices in Kolkata displayed acontinuous upward momentum since
October, 2009.
Average house price in Kolkata have now
crossed the pre-recession highest price
level (Rs 5174 per square foot, recorded
in the 3rd quarter of 2008) and is currently
staying at an all-time high level 797
,
s
ranged from 10% to 35% across the micro
markets over the last twelve months.
The pie chart on the right shows the
percentage break up of house price points
of the ongoing residential projects in and
around Kolkata. As can be seen, the Rs
2001- 3000 per square foot price bracket
has had the largest volume of new supply
by far with 47%, with around 59% of these
in the Rs 2001- 2500 per square foot
price bracket.
Rs 8000 per square foot
has had a considerable
rising
salaries has
2010
Rising demand and the
increasing input cost such as building
materials, land, construction labour and
other items devoted to the construction of
housing projects were responsible for the
continued house price growth during this
period.
(Rs 5
per square foot recorded in the 4th
quarter of 2010).
Projects have witnessed price rise
With around 9% share, the apartment
prices at over
new
supply.
volume of
Zone wise House Price Trend
2010 Year End Market Review
Overall House Price Growth in Kolkata
Source: NAI NK Realtors Research
Percentage Share of House Price Points (Kolkata)
12000
10000
South
South East NorthEast New Town
South WestSouth CentralCentral
2008
8000
6000
4000
0
2007 2009 2010
2000
Q2 Q3 Q4 Q2Q1 Q4 Q4Q1 Q1 Q3Q2 Q2 Q4Q3Q1 Q3
House prices in Kolkata displayed a continuous upward momentum in 2010.
20082007 2009
Q2Q3 Q3 Q3Q4 Q4 Q4Q2 Q1Q1Q1 Q2
2010
Q2Q1 Q3 Q4
6 0 0 0
5000
4000
3000
2000
0
1000
9
12%
59%
9%1%1%
16%
9%
Rs. 2001- 250
Rs. 2501- 3000
47%
Below Rs 2000
Rs 3001- 4000
above Rs 8000
Rs 2001- 3000
Rs 7001- 8000
Rs 6001- 7000
Rs 5001- 6000
Rs 4001- 5000
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2010 Year End Market ReviewRESIDENTIALSERVICES
Source: NAI NK Realtors Research
Kolkata prime residential marketsPrime properties in some pockets have seen steep rise in price over the past few quarters
Prime residential market in Kolkata has
experienced a significant growth over the
last twelve months.
Continued economic growth, recovery in
the IT job market and shortage of prime
properties have helped spur transaction
and price gain in the prime segment in the
end of 2010.
The resurgence in demand came mainly
from wealthy domestic buyers such as top
class businessmen, highly paid IT
professionals and public sector
employees.
Prime properties are becoming
increasingly unavailable and unaffordable
in the areas like Queens Park, Sunny
Park, Ballygunge Circular Road, Alipore
and central Kolkata such as Elgin Road,
Roland Row etc. Since Kolkata is
suffering from a lack of sufficient prime
properties in those areas, many would be
buyers have started exploring options in
new pockets, such as Tollygunge, E.M
Bypass, VIP Road, Rajarhat etc. These
pockets have witnessed a strong supply
growth over the last six to eight months.
0
8,000
6,000
4,000
2,000
10,000
12,000
14,000
16,000
Lake Town BallygungeCircular Rd.
MayfairRoad
AliporeLoudonStreet
GurusadayRoad
EM Bypass(Central)
New Town
High Price Point, Q4-2009 High Price Point, Q4-2010
Low Price Point, Q4-2009 Low Price Point, Q4-2010
The new pockets have witnessed strong
absorption compare to other established
prime locations. This was mainly because
of a striking difference in prime property
values between the established markets
and new pockets.
Properties available in the above
mentioned areas considered as ultra
prime where current rate hovers between
Rs10,000 and Rs15,000 per square foot.
Prices of properties available in new
pockets are well below the value level of
ultra prime properties and vary from Rs
4500 to Rs 8500 per square foot.
Prices of prime properties in Kolkata have
been continuously increasing since the
beginning of 2010. While prices of prime
properties increased throughout Kolkata,
certain locations clearly stand out such as
E.M Bypass, Ballygunj Circular Road,
Gurusady Road etc. The highest average
year on year price growth has been on
the E.M by pass (central) and its nearbyareas at around 44%.
The second highest average price growth
was in the VIP Road area at around 33%.
Established prime areas like Alipore
(20%), Ballygunge Circular Road (23%),
May Fair Road (25%), Gurusaday Road
(23%), Loudon Street (24%) have
witnessed strong year on year average
price growth. Prime properties in New
Town and Rajarhat area saw the lowest
average price growth at around 18% fromthe 4th quarter of 2009 to the 4th quarter
of 2010.
Areas like New Alipore, Roland Row,
Elgin Road, Golf Garden are expected to
see the launch of few prime and ultra
prime category properties from the
developers like Ideal Group, PS Group,
South City Group and Simplex Group in
the next three to six months.
Prime supply in the last six months
Ideal Group IronsideRoad
DiamondGroup V.I.PRoad
Avani Group Ballygunge Cir. Road
Orbit Ballygunge Place
Mani Group OnE.M. Bypass
Signature Tower at Golf Garden
Up coming Project
10
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RESIDENTIAL SERVICES 2010 Year End Market Review
residential market have landscaped
garden, wide open space filled with
various recreational amenities and
modern day facilities.
Properties in all price ranges, from MIG to
HIG with various amenities and facilities
are currently fulfilling the changing market
demand in Kolkata.
To attract potential buyers and to ensure
the units to be absorbed easily, most
developers have also been tweaking their
product offerings to match changing
demand which have significantly helped
developers to draw buyers interest andstimulate sales.
Few Ongoing Residential Projects with Modern day Amenities and Facilities:
Srijan Midlands Jessore Rd. MIG 57
Avani Oxford VIP Road HIG 60
PSMagnum VIP Road HIG 56
ClubTownGarden BTRoad MIG 60
Silver Oak Estate Rajarhat MIG 70Ideal Niketan Off EM Bypass HIG 68
Urbana Near Ruby HIG 80
Oasis Panditya Rd. HIG 78
DiamondCity South Tollygunge HIG 80
GreenfieldCity Behala MIG 74
EdenCity Maheshtala MIG 78
Purti Flowers Behala MIG 60
Devaloke-DeCasa Sonarpur MIG 50
PSSrijanSonargaon Sonarpur MIG 61
Sherwood Estate Narendrapur MIG 57
Kolkata markets changing housingThe launch of Sherwood Estate in the middle of 2004, revolutionised the housingmarket in and around Kolkata.
SHERWOOD ESTATE at Narendrapur
Source: NAI NK Realtors Research
The types of housing projects being
constructed in Kolkata havechanged over the years.
The launch of Sherwood Estate by Srijan,
Heritage and PS Group at Narendrapur in
the middle of 2004, actually, was the
beginning of a new era for housing market
in Kolkata. Since then, Kolkata has been
witnessing a change in the buyers tests
and demands.
The group, introduced various modern
day amenities and facilities such as
landscaped garden, swimming pool,
tennis court, club, gymnasium, library
jogging track, park, round the clock
security and so on in the Narendrapur
project at an affordable price for the first
time in Kolkata which helped the middle-
class home buyers in Kolkata to think
differently while choosing a new home in
a housing project. Today everyone in
Kolkata knows that home is not just four
walls and a roof.
Today, an apartment with all modern day
facilities is not a distant dream to the
middle-class people of Kolkata.
Majority of the current large good
residential projects in the Kolkata
Note: Apartment rates at over Rs. 3000/sq.ft are considered as HIG.
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Residential Sale Rates (as on December, 2010)
FORECAST
Continued improvement in employment
and pay package particularly in the IT
sector will likely boost up the housing
demand in the coming quarters. However
there will likely be a gradual upward
movement in home lone rates.
The established markets such as Alipore
and Ballygunge with limited land parcels
are expected to see minor launches and
continued price increase in the coming
years.
The ongoing home prices are still very
attractive in Rajarhat compare to other
prime locations in Kolkata. Improving IT
job market followed by expected hike in
pay package will likely put pressure onprime house price in New Town area.
With anticipated increase in home loan
rates and continued increases in house
prices, the residential market may not see
the type of price increase occured in
2010. However, demand for apartment in
Kolkata should remain strong.
Park Street 9000-12000
LoudonStreet 9000-12000
Theatre Road 9000-12000
Central
Garia 2200 - 3200
Narendrapur 1800 - 2500
Rashbehari Connector 4100 - 4600
South-East
Alipore 10000-14000
Behala 1700 -2600
Batanagar & Maheshtala 1500- 2800
South-West
Dobson Road 3200- 3500
G.T. Road 1600 - 3500
Howrah
Lansdowne Road 6000 - 8000
Bhawanipore 6000- 7000
P.A. Shah Road 3500-10500
Jadavpur 3000- 4500
Tollygunge 3600- 5350
South
East
Salt Lake 3000 - 4500Beleghata 2500 - 3000
Kankurgachi 7000-8000
E.M. Bypass(central) 4400 - 8500NewTown/Rajarhat 1900 - 4700
KOLKATA Location Rs./Sq.ft. KOLKATA
North
Location Rs./Sq.ft.Jessore Road 1900- 4050
VIPRoad 2600 - 4850
Shyambazar 2300- 5000
Madhyamgram 1700 - 2100
B.T. Road 1600- 3000
South-Central
QueensPark 10000-15000
SunnyPark 10000-15000
BallygungeCir. Road 10000-15000
BallygugePark Road 8000-12000
BullygungePlace 6000- 7000
Mayfair Road 8000-12000
Gariahat Road 6000-10000
Goal Park 6000 - 8000Rashbehari 5000- 7000
Source: NAI NK Realtors Research
Demand for modern apartments with
amenities and facilities in Kolkata
continued to grow at a modest pace in the
last seven to eight years.
Kolkata fringe areas such as Garia,
Narendrapur, Sonarpur and Baruipur in
the south-east, Behala, Jalkal andBatanagar in the south-west, Gopalpur
and Narayanpur on 211 Bus route at
Rajarhat in the east, Madhyamgram in the
north-east and BT Road in the north-west
have been witnessing heightened activity
in the recent years.
Part of Behala and the adjacent
Maheshtala municipality in the south-west
fringe is currently undergoing a major
transformation into a emerging residential
location. The growth in infrastructure
projects such as Joka-BBD Bag Metroextension, widening of the Budge Budge
Trunk Road, a flyover from Nungi to
Jhinjira Bazaar (Taratala) and a growing
local population will place upward
demand for properties over the coming
years.
With a number of ongoing good housing
projects such as Diamond City West, Purti
Colors, Greenfield City, Purti Flowers,
Eden City and Calcutta Riverside, the
most area has already become one of the
important quality and affordable housinglocations in the Kolkata market.
Of late, Rajarhat has witnessed a
remarkable growth in home sales and
price. In the last six months, price growth
in almost all the projects were in the
range between 20% and 30%.
Projects on Rajarhat Expressway, 91 Bus
Route and near City Centre Mall have
been in high demand. Rajarhat area have
witnessed the launch of Silver Oak
Estate, Purti Star, Siddha Pine-extension,
Ideal Abasan, Ideal Enclave-extension in
the last six months.
Some new projects such as Loharuka
Group project, Shrachi Epicentre by
Shrachi Group, Sankalpa-Extension are
in the pipe line which will be launched in
New Town and Rajarhat area within the
next couple of months.
Overall buyers sentiment towards New
Town and Rajarhat have improved much
in the last six months of 2010. The area
has been on the upbeat after the
announcement of sanctioning land to the
IT major INFOSYS by the state
government in November, this year.
However, the entangled political situation
and the poor infrastructure facilities like
electricity, water supply had a little impact
on the overall spirit of the new home
buyers.
2010 Year End Market Review
Residential Lease Rates
E.MBypass (NearR.B.Connector) 15-17
8-10Garia
35-40Ballygunge (Prime Areas)
Narendrapur 8-10
SOUTH - EAST KOLKATA
SOUTH - CENTRAL KOLKATA
SOUTH - WEST KOLKATA
SOUTH KOLKATA
CENTRAL KOLKATA
EAST KOLKATA
NORTH KOLKATA
Ballygunge (Other Areas) 30-35
Behala 8-10
Alipore 35-40
Tollygunge 10-15
Jadavpur 10-15
Prince Anwar Shah Road 15-20
Park Street, Theatre Road 30-40
E. M. Bypass (Central) 25-30
Salt Lake 20-25
V.I.P Road 12-15
Shyambazar 12-15
RESIDENTIALSERVICES
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Location Rs./Cottah
Industrial L and Rates
KonaExpress wayto Dhulagar TollPlaza 0.40-0.60Million
Dhulagar Toll PlazatoUluberia 0.20-0.35
Uluberia to Kolaghat 0.08-0.15
Dankuni to Srirampur (onDelhi Road) 0.25-0.40
Dankuni to Singur (onDurgapurExp. Way) 0.08-0.30
Srirampur toChandannagar 0.15-0.25
Kalyani 0.15-0.25
13
Salt Lake(1-3.5million)
Madhyamgram(0.4-0.8 million)
VIPRoad(2.5-4.5 million)
Ballygunge(7-10.5 million)
Garia(0.7-1.5 million)
Narendrapur(0.4-0.8 million)
Behala(1-2million)Poilan
(0.35-0.5 million)
Tollygunge(1.5-2.5 million)
Alipore(9-10.25million)
Jodhpur Park(3-5million)
Shyambazar(3.5-5million)
BTRoad(0.4-2.5 million)
Park Street(10.25-10.5 million)
2010 Year End Market Review
Land market activity in Kolkata and
its periphery areas continued to
gain momentum over the last two
quarters.
Developments of new housing activity in
the fringe market grew at an
unprecedented rate over the past one
year.
The residential market which has been on
a continuous growth path over the last
one year is currently fueling the demand
of land in and around Kolkata.residential
Drive for new lands to create
land banks by these developers have
made the land market more competitive in
the last six months
infrastructure such as flyovers, metro
connectivity are gradualy being
introduced.
In the office market particularly in
the IT sector, demand has come
back again. New office
development is gaining momentum
across kolkata office market, however,
the demand for land for new office
development is maximum in the
SBD areas such as Sector-V,
New Town, Topsia and
Kasba connector etc.
Shortage of land
and high acquisition
cost is driving
the developersto the SBD
areas.
Apart from a few
small sized land deals
completed in the last six months, the
people of Kolkata has witnessed a
significant land deal at Rajarhat in
.
A largenumber of developers, small to
big have become aggressive again in the
land market.
, mainly in the
suburban areas where various urban
November, 2010
Source: NAI NK Realtors Research
FORECAST
Land market activity is likely to be more
competitive in the coming quarters a
Competition for raw land will be more in the
coming years and will likely to increase the
landvalue by5% to 10% in the fringe areas
sconstruction activity in all real estate
sectorsare gaining momentum.
The land market activityis likely to be more
strong from the 2nd half of2011.
Kolkata Land marketLand market activity in the Kolkata market continued to gain momentum backed bysteady performance of the residential market.
LAND SERVICES
Land Rates in Kolkata (in Rs/cottah)
Demand of land in the industrial zones or
parks have increased substantially overthe past couple of years. Apart from the
government run industrial zones, a lot of
privately owned and managed industrial
parks have come up in the
neighbourhood of Kolkata such as
Dankuni, Dhulagar, Jangalpur and
Uluberia on the main traffic routes such
as NH6, NH2, Durgapur Expressway etc.
Low land rates and better connectivity
has attracted many small and medium
sized industries and warehouses to set
up their operational bases in these
industrial parks.
Shilpangan, a privately managed
industrial park is being developed on
80-100 Bighas of land at Dankuni by
Unnayan Group.
Currently infrastructure and development
work is in progress at another privately
managed industrial park, named Agarwal
Commerciall Park at Dankuni.
INFOSYS, Indias second-largest IT
major by revenue has acquired 50 acres
from the State government at the rate of
Rupees 1.5 crore per acre. The land is
located in Action Area-II, in New Town
where the same size of land is allotted to
WIPRO at the same rate in December
last year.
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Supply in thenext Twelve months
Developer Location Sq.Ft.
Merryl Infrastructure (NH6) 4
3,00,000
CCI Logistics Chamrail (NH6) 5,00,000
MaaAmbe Dankuni (NH2) 1,00,000
Dhulagarh ,50,000
Meeri Chai Co. BBT Road
14
2010 Year End Market ReviewWAREHOUSESERVICES
With growing demand and increasing
development activities, Kolkatawarehouse market has consolidated its
position as one of the growing real estate
sectors in the end of 2010.
telecom,
Over the past couple of years, Kolkata is
witnessing a spurt in development of new
generation warehouses and logistics hub.
These developments are coming up in the
locations such as Kona, Dankuni,
Sankrail, Dhulagarh, Chamrail,
Jagadishpur etc. along the national
highways such as NH2 and NH6.
A number of privately owned and
government run small and medium sized
industrial parks have also come up in
these areas. NH2 establishes connection
with the North India and NH6 with the
South and West India. As Kolkata is
situated on a cross road between East
and North East India, the city is
increasingly becoming important in the
freight corridor of East and North East
India. Companies such as retail chain,
telecom etc. are finding Kolkata profitable
to establish their logistic centers and
warehouses in these locations.
Approximately 3,25,000 sq.ft of modern
warehouse space was added to the
Kolkata warehouse market in the last twoquarters of 2010.
The expansion of modern retail and
increasing investments in various medium
to large scale industries such as food,
engineering, power, steel, etc
have captured warehouse developers
interest substantially in recent times.
Amongst the major
warehouse completions, notables were
the 75,000 sq.ft. warehouse by Pratap
Polysec at Poly Park in Dhulagarh on
NH6 and 50,000 sq.ft. warehouse at
Maheshtala on Budge Budge Trunk Road
by Meri Chai company.
Kolkata warehouse marketKolkata which is providing an overland freight corridor between east and north-east of Indiahas seen a spurt in development of modern warehouses along the national highways.
FORECAST
Rental rates will likely stay in the current
level for the next two quarters of 2011.
Increasing demand will bring more
supply in the coming months.
New completion will likely push the
vacancy rates slightly up in the short
term.
LEASE RATES
During the last six months of 2010,
warehouse lease rates across locations
in Kolkata market have witnessed an
increase ranging between12% and 15%.
However, some locations like BBT Road,
BT Road and Barasat-Madhyamgram
area did not witness any lease rate
growth since mid-year. Prevailing l
s and
Rs 22 per square feet per month across
market
ease
rate currently hover between Rs. 10
.
VACANCY RATESDuring the last six months, the overall
warehouse vacancy rates in the Kolkata
market have increased, reaching 15% at
end 2010. The highest increase in
vacancy occurred in the NH2 and Nh6
area. Since mid-year vacancy increased
from 10% to16% in the NH2 and from
13% to 17% in the NH6. This is because,
more new supply has been added, thus
increasing vacancy.
Warehouse Lease Rates (median price)
Key transactions in 2010
FutureGroup Barasat Road 1,00,000
Unrevealed MaaAmbe, (NH2) 1,00,000
Tata Group Sankrail Indl. Park (NH6) 80,000
Unrevealed Sankrail Indl. Park (NH6) 60,000
Unrevealed Sankrail Indl. Park (NH6) 40,000
Tenant Project/Location Sq. Ft.
Maa Ambe, one of the reputed modern
warehouse developers of Kolkata has
completed the land development work at
Dankuni on NH2 to develop a 1,00,000
sq.ft warehouse and currently pilling work
is going on at the plot. Land development
work for the South City Anmol Projects
warehouse is currently ready andconstruction will start soon.
Source: NAI NK Realtors Research
December2008 December2009 June 2009 December201
NH6 NH2 Taratala-HideRoad BTRoad Barasat-MadhyamgraBudgeBudgeTrunkRoadRoad
18
20
16
14
12
10
8
6
4
2
0
Warehouse Rental Rates
NH-6 14-18
NH-2 11-16
Taratala, HideRoad 16-22
BudgeBudge Trunk Road 14-18
B.T. Road 10-14
Barasat-Madhyamgram 12-14
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NAI NK Realtors established in 1987, is one of the fastest growing,
most active commercial real estate services firms in Kolkata. The
firm provides clients with the best local market knowledge in the
industry, complemented by NAI Globals professionally-managed
international network, the largest of its kind. NAI NK Realtors team
known for its market leadership, collaborative corporate culture,
knowledgeable and experienced professionals and commitment toclient service.
NAI NK Realtors services include multi-site acquisitions and
dispositions, sublease, tenant representation, lease administration
and audit, site searches, finance and investment services,
demographic analysis, feasibility analysis, due diligence and
related consulting and advisory services. For more information,
visit NAI NK Realtors Web site at:
This report contains information available to the public and NAI NK
Realtors accepts no responsibility if this should prove not to be the
case. No warranty or representation, express or implied, is made to
the accuracy or completeness of the information contained herein.
The same is submitted subject to errors, omissions, change of
price, rental or other conditions, withdrawals without notice.
www.nkrealtors.com
15
2010 Year End Market Review
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