Feb 2018
12

Review of the Present-Day Real Estate Picture of Kolkata

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What is the state of Real Estate in Kolkata now? This is a question that has plagued renters, prospective buyers, investors alike. Real Estate in Kolkata has developed at a massive rate.This article will attempt to cover the multifaceted aspects of the state of real estate in Kolkata now.

Owing to steps taken by the current Government, Kolkata has become a productive ground for the growth of investors and entrepreneurs alike. This has in turn encouraged and opened income opportunities that were once absent. The real estate market in Kolkata is a thriving organism. Yet to be bereft of an old world charm, Kolkata is situated at the brink of traditionalism and modernity, and the state of real estate in Kolkata is reflective of this.

Growth: The real estate sector in Kolkata, according to statistics, has shown a growth of 11% on a yearly basis. There has also been the growth of numerous townships. The GariaBaishnabghataPatuli township, the Behalatownship, the Alipore township and the currently emerging township in Rajarhat, Action Area, New Town are a few examples. This emerging township also provides affordable rent and reasonably priced property compared to property prices in other metropolitans. The demand for property has seen a tremendous spike ever since the construction of the Metro Railways. There is already a metro corridor that connects Dum Dum to Tollygunge and was later extended to connect Noapara to Garia. The metro corridor currently under construction, also known as the East West corridor will connect Salt Lake to Howrah, making connectivity a dream come true for commuters.

Price of Property: The price of property, for rent or for purchase is affordable and it caters not exclusively to prospective buyers but also to people looking to rent. Renting is another aspect of real estate that is often overlooked. One often associates real estate only with purchase. The phenomenon of apartments being leased out for rent in Salt Lake, New Town to employees in the IT Sector is not a recent one. Apartments are leased out for rent regularly in areas that are situated close to workplaces and universities.

Mobility: The key localities in Kolkata such as in Rajarhat, E M Bypass, New Town, B. T. Road are under constant development. The prices of these localities begin from Rs 5108 per sqft, Rs 6008 per sqft, Rs 4682 per sqft and Rs 3660 per sqft, respectively. Roads are constructed to connect these localities to the core of the city. The placement of hospitals, schools, universities, metro railways as well as the airport have become determining factors for subsequent real estate projects and developments. The mobility of people to a certain part of the city for a myriad of purposes, be it professional, educational, amusement also plays a determining factor in the placement of real estate development projects. This very reason has been seen in the creation of a bus stop called Garage, 300 metres from Santragachi. One can also find excellent 3 BHK apartments B.T. Road, Kolkata where commuting from one place to another is hassle-free.

Taxes: The discussion of the topic of property begs a discussion on the relationship between property and the State. The charges that the Government levies on property and itsregistrationare based on of subsequent difference in sales that are made above and below the margin of Rs. 25 lakhs. If the sales value for a piece of property is above the margin of Rs. 25 lakhs, then the taxlevied will be as follows,

  • 6% stamp duty for the Panchayat Areas

  • 7% stamp duty for Municipal and Corporation Areas and

  • 1% registration charges

However when the sales value for a piece of property is below theRs. 25 lakhs margin, then there is a notablemargin of difference in the charges levied, the charges will be as follows,

  • 5%  stamp duty for Panchayat Areas

  • 6% stamp duty for Municipal and Corporation areas and

  • 1% registration charges

The property tax levied by the Kolkata Municipal Corporation is always subject to constant revision.

Electricity & Water: Real estate also demands the question of electricity and water. 96% of the electricity in every sector of West Bengal is provided by the WBSEDCL. The water supply in Kolkata is provided by the Kolkata Municipal Corporation and the charges are Rs 7 per kilo for domestic purposes and Rs 15 per kilo for industrial, commercial and institutional purposes.

This is the current state of real estate in Kolkata and it can be concluded that the conditions remain largely favourable for prospective buyers and investors.

Updated: 23 Mar 2018

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