year_end_market_report_2010

WAREHOUSELANDRESIDENTIALRETAILOFFICE

Values trends & opportunitiesin the Kolkata real estate market

2

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 India’s surging economy which has been growing

at an 8.9% pace for the past three quarters, Kolkata real estate

market continued its stronggrowth trajectory till the endof 2010.

Although, the recent effect of gradually increasing interest rates

andprevailing high inflationary pressure is posing a little threat to

the 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 YearEndMarketReview

DEAR FRIENDS,

3


Office ............................... 4

Retail ............................... 6

Residential ............................... 9

Land ............................... 13

Warehouse ............................... 14

CONTENTS

About Kolkata Market Report

The 2010 Kolkata Market Report is a unique tool that reviews

and summerises the real estate activities of the past year on

major locations across the Kolkata market. As a reference

tool, it reviews values, economies, social factors and other

conditions that impact a market.

Each analysis was completed by the NK Realtors professionals

who are expert at reviewing the local market, identifying trends

and reporting market activity.

CORPORATESERVICES

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 India’s leading IT company

acquired 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, Kolkata’s 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 upcoming

commercial 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 among

developers, 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 Belani

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 space

construction was completed in the SBD

markets during the last sixmonths.

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


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

GRADE - A, Office Rental Values

GRADE - B, Office Rental Rates

CORPORATESERVICES

FORECAST

SBD areas such as Kasba and Topsia are

expected to see a marginal rise in overall

lease and outright values while New Town

and Sector-V will likely see a strong rise

in overall lease and outright values in the

short term.

Present downward trend in overall lease

rates in the CBD area Is likely to be

continued. However, the outright rate will

continue 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.)Park Street 12,000-16,000

Camac Street 12,000-16,000

AJC Bose Road 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, New Town 3,500 - 4,500


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,

Kolkata’s 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 TownDalhousie Topsia

A.J.C. Bose RoadPark Street Camac Street

1 2 0

1 00

8 0

6 0

4 0

0

2 0

20082007 2009 2010

Q2 Q3 Q4 Q2Q1 Q4 Q4 Q4Q1 Q1Q2 Q2Q3Q1 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

160

120

100

80

60

40

0

140

20

20082007 2009 2010

Q2 Q3 Q4 Q2Q1 Q4 Q4 Q4Q1 Q1Q2 Q2Q3Q1 Q3 Q3

Current Grade-A and Grade-B Office Vacancy Rate

G ra d e -A O ff ic e V a c a n c y G ra d e -B O ff ic e Va c a nc y


RETAILSERVICES

Kolkata retail marketMost of the mall developers in Kolkata have reactivated their mall projects over the pastthree to four quarters.


76

On the backdrop of improving

consumer confidence, supported

by the country’s 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 Group’s

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 HDIL’s first multiplex

StandaloneTransactions in Mature Urban Areas

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 restaurant

format 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 retail

sector. However, these are mostly smaller

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.


I Core Planet Barasat 25,000

Azadhind Dhaba Baishnabghata Patuli 2 ,500 ”

(app.)

Godrej Interio NSC Bose Road 7,000 ”

Mega Mart Lake Town 4,000 ”Bengal Hyundai BT Road 3,500 ”Bata Barasat 3,000 ”

Khadim Garia 3,000 ”

MP Jewellers Garia 2,000 ”

Hero Honda NSC Bose Road 1,600 ”MP Jewllers Behala Tram Depot 1,000 ”

B-18 Chowringhee 25,000 (app.)

Krazy Kebabs N.H. Sarani 4,000 ”Samsung Lee Road 4,000 ”

Calvin Klein Woodburn Park 2,500 ”

Tanishq B.B.Ganguly Street 2,500 ”

Urban Gypsy Dover Lane 1,500 ”

Significant Mall Transactions

”

Reliance Retail Avani Riverside 1,00,000 (app.)

Spencer’s Retail Axis 50 ,000 ”

Cinepolis Acropolis 40, 000 ”

Bigbazaar Wood Square 30, 000 ”

Star Mark Mani Square 15, 000

Future Mall Supply

Lake Mall Lake Market Space Group 2,50,000 2011

North City Lake Town Diamond Group 3,00,000 2011

Avani Riverside Howrah Avani Group 3,00,000 2011

Sishir Kunj 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

Spencer’s Galleria Park Circus RPG Group 4,00,000 2012

,

RETAILSERVICES



7

“Varnaparichay” India’s 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 Spencer’s 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, SPENCER’S GALLERIA at Amir

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. Amajor

tenant at Varna Parichay is Big Cinemas.

78

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 City Centre-I Metropolis Mani Square SouthCity Forum HomeLand

5%

4%

3%

2%

0%

1%No Vacancy

inCity Centre-I

South EMBypassCBDNewTown 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 50

2 0 0

1 5 0

1 00

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.

RETAILSERVICES


11

RESIDENTIALSERVICES

Kolkata residential market

Kolkata residential market has

witnessed a strong growth in

terms 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 a

continuous 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


Overall House Price Growth in Kolkata


Percentage Share of House Price Points (Kolkata)

12000

10000

South

South East NorthEast NewTown

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

6000

5000

4000

3000

2000

0

1000

9

12%

59%

9%1%1%

16%

9%

Rs. 2001- 2500

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

2010 YearEndMarketReviewRESIDENTIALSERVICES


Kolkata prime residential market’sPrime 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 nearby

areas 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% from

the 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 Ironside Road

Diamond Group V.I.P Road

Avani Group Ballygunge Cir. Road

Orbit Ballygunge Place

Mani Group On E.M. Bypass

Signature Tower at Golf Garden

Up coming Project

10

11

RESIDENTIALSERVICES 2010 YearEndMarketReview

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 and

stimulate sales.

Few Ongoing Residential Projects with Modern day Amenities and Facilities:

Srijan Midlands Jessore Rd. MIG 57

Avani Oxford VIP Road HIG 60

PS Magnum VIP Road HIG 56

Club Town Garden BT Road MIG 60

Silver Oak Estate Rajarhat MIG 70

Ideal Niketan Off EM Bypass HIG 68

Urbana Near Ruby HIG 80

Oasis Panditya Rd. HIG 78

Diamond City South Tollygunge HIG 80

Greenfield City Behala MIG 74

Eden City Maheshtala MIG 78

Purti Flowers Behala MIG 60

Devaloke-De Casa Sonarpur MIG 50

PS Srijan Sonargaon Sonarpur MIG 61

Sherwood Estate Narendrapur MIG 57

Kolkata market’s changing housingThe launch of Sherwood Estate in the middle of 2004, revolutionised the housingmarket in and around Kolkata.

SHERWOOD ESTATE at Narendrapur


The types of housing projects being

constructed in Kolkata have

changed 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.

11712

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 on

prime 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

Loudon Street 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 - 8500New Town/Rajarhat 1900 - 4700

KOLKATA Location Rs./Sq.ft. KOLKATANorth

Location Rs./Sq.ft.Jessore Road 1900 - 4050

VIP Road 2600 - 4850

Shyambazar 2300 - 5000

Madhyamgram 1700 - 2100

B. T. Road 1600 - 3000

South-Central

Queens Park 10000-15000

Sunny Park 10000-15000

Ballygunge Cir. Road 10000-15000

Ballyguge Park Road 8000-12000

Bullygunge Place 6000 - 7000

Mayfair Road 8000-12000

Gariahat Road 6000-10000

Goal Park 6000 - 8000Rashbehari 5000 - 7000


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 and

Batanagar 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 Metro

extension, 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 housing

locations 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.


Residential Lease Rates

E.MBypass(NearR.B.Connector) 15-17

8-10Garia

35-40Ballygunge (PrimeAreas)

Narendrapur 8-10

SOUTH - EAST KOLKATASOUTH - CENTRAL KOLKATASOUTH - WEST KOLKATA

SOUTH KOLKATACENTRAL KOLKATA

EAST KOLKATANORTH KOLKATA

Ballygunge (Other Areas) 30-35

Behala 8-10

Alipore 35-40

Tollygunge 10-15

Jadavpur 10-15

PrinceAnwar Shah Road 15-20

Park Street, Theatre Road 30-40

E. M. Bypass (Central) 25-30

Salt Lake 20-25

V.I.PRoad 12-15

Shyambazar 12-15

RESIDENTIALSERVICES

Location Rs./CottahIndustrial Land RatesKona Express way to Dhulagar Toll Plaza 0.40-0.60 Million

Dhulagar Toll Plaza to Uluberia 0.20-0.35

Uluberia to Kolaghat 0.08-0.15

Dankuni to Srirampur (on Delhi Road) 0.25-0.40

Dankuni to Singur (on Durgapur Exp. Way) 0.08-0.30

Srirampur to Chandannagar 0.15-0.25

Kalyani 0.15-0.25

”

”

”

”

”

”

13

Salt Lake(1-3.5 million)

Madhyamgram(0.4-0.8 million)

VIP Road(2.5-4.5 million)

Ballygunge(7-10.5 million)

Garia(0.7-1.5 million)

Narendrapur(0.4-0.8 million)

Behala(1-2 million)Poilan

(0.35-0.5 million)

Tollygunge(1.5-2.5 million)

Alipore(9-10.25 million)

Jodhpur Park(3-5 million)

Shyambazar(3.5-5 million)

BT Road(0.4-2.5 million)

Park Street(10.25-10.5 million)


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 developers

to 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 large

number of developers, small to

big have become aggressive again in the

land market.

, mainly in the

suburban areas where various urban

November, 2010


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

landvalueby5%to10%in the fringeareas.

s

construction activity in all real estate

sectors are gainingmomentum.

The landmarket activity is likely to bemore

strong from the2ndhalf of 2011.

Kolkata Land marketLand market activity in the Kolkata market continued to gain momentum backed bysteady performance of the residential market.

LANDSERVICES

Land Rates in Kolkata (in Rs/cottah)

Demand of land in the industrial zones or

parks have increased substantially over

the 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, India’s 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.

Supply in the next Twelve months

Developer Location Sq.Ft.

Merryl Infrastructure (NH6) 4

3,00,000

CCI Logistics Chamrail (NH6) 5,00,000

Maa Ambe Dankuni (NH2) 1,00,000

Dhulagarh ,50,000

Meeri Chai Co. B B T Road

11714

2010 YearEndMarketReviewWAREHOUSESERVICES

With growing demand and increasing

development activities, Kolkata

warehouse 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 two

quarters 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 anoverland freight corridor between east and north-east of India,has seen a spurt in development ofmodernwarehouses 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 RATES

During 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

Future Group Barasat Road 1,00,000

Unrevealed Maa Ambe, (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 and

construction will start soon.


December2008 December2009 June2009 December2010

NH6 NH2 Taratala-HideRoad BTRoad Barasat-MadhyamgramBudgeBudgeTrunkRoadRoad

18

20

16

14

12

10

8

6

4

2

0

Warehouse Rental Rates

NH-6 14-18

NH-2 11-16

Taratala, Hide Road 16-22

Budge Budge Trunk Road 14-18

B.T. Road 10-14

Barasat-Madhyamgram 12-14

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 Global’s professionally-managed

international network, the largest of it’s kind. NAI NK Realtors team

known for its market leadership, collaborative corporate culture,

knowledgeable and experienced professionals and commitment to

client 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 NAINKRealtorsWeb 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. Nowarranty 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, withdrawalswithout notice.

www.nkrealtors.com

15


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