Kolkata’s perpheral areas to witness real estate growth
Kolkata- Developers believe that Kolkata is likely to see a large number of small residential projects in areas like Diamond Harbor, Rajarhat, E M Bypass, Garia and Kona Expressway over the next one or two years.
They expect that, owing to land scarcity, though Kolkata may not get big housing projects, availability of small land parcels will keep the sector moving.
At least five-six projects are expected to be launched within the city and at least 40 new projects are coming up in the peripheral areas of the city. Once the Budget is announced, the sector will further get a boost, said realty experts.
Ambuja Realty, which has launched projects like the City Centre Malls and housing estate Upohar, is planning to launch a small residential project in Kolkata by the end of 2013. Another reputed builder of Kolkata, Sureka Group, is also coming up with few housing projects in the city.
Though there is no huge growth in real estate sector of Kolkata, there is good demand for housing. However realty analysts are expecting that the new budget will drive in a large number of investors to the Kolkata realty market.
Also, the realty market of Rajarhat, which was sluggish from past two years, also seems to have a spurt with construction activity gaining speed.
In Rajarhat too, where there has been a sloth in activity over the last one or two years, construction activity has picked up, especially in the smaller housing projects.
Kolkata is mostly end-users driven market than investors market, due to which the price variations is not high in the city unlike other prime cities of India.
Despite good demand for housing units, the major problem for Kolkata realtors lies in getting land for their projects. Dividing land into smaller parts makes it difficult for developers to launch mega projects.
Major barrier for developing new townships in West Bengal is the Urban Land (Ceiling and Regulation) Act (ULCA), 1976. As per the Act, the ceiling limit on vacant land in a category ‘A’ city like Kolkata is 7.5 cottah or about 500 square meters. West Bengal government has recently formed a taskforce to examine the land allotment issues recently.
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