Realty Shine In Kolkata Announces The Rise Of The East

In the City of Joy, the real estate trend for the month of April may spread more cheers. According to a PropTiger DataLabs for the month of April, demand for property in the city has gone up, while prices have also witnessed a sharp rise year-on-year. The property markets of Gurgaon and Noida, however, have yet to see a pick up, the report shows.

The report — named Monthly Realty Watch-North & East India-May 2016 — takes into account the real estate markets of Noida, Gurgaon and Kolkata.

The shining star 

The increased supply pretty much tells you that the demand for real estate in Kolkata has risen. According to the report, Kolkata alone accounted for 55 per cent of the total unit launches in the north and east regions for the month of April. On the other hand, major localities of the city witnessed a price appreciation in the range of three to 11 per cent year-on-year (YoY), with localities of Ballygunge and Salt Lake seeing the greatest rise. Siddha Group, Golden Point and Mani Group are among the developers that have launched new projects in Kolkata. The rates of these properties vary from Rs 1,870 to Rs 6,500 per sq ft.

Authorities are also not leaving no stone unturned to make the city realise its true potential. In fact, the National Highways Authority of India or Nhai has recently announced a plan to construct a road-cum-rail bridge in Kolkata, across the Muriganga River, at a cost of Rs 2,800 crore. Projects like these would further boost the demand for property in the city.

Gurgaon: Slow and steady

Gurgaon residential market may not be in the pink of health. Localities across the city witnessed a price correction. In fact, property prices fell by seven per cent in the Dwarka Expressway residential market and by five per cent in New Gurgaon. However, that did not stop major developers from launching new projects in a city that has a lot of potential. Developers that launches new projects in Gurgaon include Tata Housing, Vatika Group and SSG Group. Almost evenly priced, these properties are in the range of Rs 5,130 to Rs 5,836 per sq ft.

The Millennium City's commercial landscape, however, has been abuzz with activity. Recently, M3M India finalised a deal with Sahara India to acquire a 185-acre land tract for Rs 1,211 crore. In another landmark deal, US-based realty major Trump Organisation plans to develop an iconic office tower in Gurgaon at an estimated cost of Rs 1,000 crore in a joint venture with IREO. The project is likely to be launched by the end of this year.

Noida: A lot to catch up

Despite renewed efforts to revive it, real estate in Noida has not been able to pick up yet. As the huge inventory pile refuses to go down, new launches have been subdued. From two and six per cent, localities across the city saw a decline YoY. The city saw only one new project launch by Advetaya Constructions.

Meanwhile, civic authorities in the city have been upping the efforts to improve the state of affairs. In fact, in a move to provide extra space for development, the Uttar Pradesh Cabinet has increased the floor area ratio (FAR) by 0.5 within a 1,000-metre radius of Metro corridors in Greater Noida. Steps such as these may help Noida slowly come back to the right track.