It is rightly said that Kolkata is not just a city; it’s an emotion for those who’ve lived there or even visited once. The nickname “City of Joy” was popularized by Dominique Lapierre’s 1985 novel The City of Joy, which portrayed the resilience and spirit of Kolkata’s people. And as we all know, Kolkata, East India’s commercial and financial hub, is considered the bridge to North-East India and, being a port city, a gateway to Nepal, Bhutan, Bangladesh, and East Asian countries.
Kolkata is shifting from an industrial-era economy to a diverse service-led growth model, with technology, education, healthcare, and logistics playing key roles. Today, from being a cultural powerhouse, it has also become a magnet for domestic and foreign investments in industrial & logistics, IT sector, real estate, and even data centres.
Though some challenges remain. From aging infrastructure in core city areas and redundant land regulations to bureaucratic delays and the need for deeper private sector investment, the state needs a forward-looking approach to come at par with other bubbling commercial hubs of India like Mumbai, Delhi, Bengaluru, and Hyderabad.
Coming to the good part, the state has a strong human capital with a literate and skilled workforce, and coupled with its strategic location, Kolkata can become the next big hub for IT and ITeS sector as well as trade and logistics. With policy reforms, better infrastructure, and sustained investment, the city is poised to become a more significant economic player in eastern India.
Kolkata, East India’s commercial and financial hub, is considered the bridge to North-East India and, being a port city, a gateway to Nepal, Bhutan, Bangladesh, and East Asian countries.
THE RISING METROPOLIS
Kolkata has developed substantial infrastructure in the last few years, providing better connectivity across the city to keep pace with the rapidly rising urbanization. As of 2025, some major infrastructure projects in the city include the central Eastern Peripheral Expressway, expansion of Metro Rail lines (Joka to Esplanade, Garia to Airport) and Eastern Metropolitan Bypass expansion, improving connectivity to New Town and Rajarhat.
What’s more, the city is relatively more affordable than other metros like Mumbai, Delhi, or Bengaluru and, thus, on the radar of many domestic investors looking for good property appreciation. A quick dipstick with city residents makes it evident that there is a rise in demand for residential, commercial, and mixed-use developments due to the city’s evolving business landscape and rising middle-class population.
The real estate experts cite some of the key areas for investment in Kolkata:
- Salt Lake (Bidhannagar) – IT hub, good infrastructure, popular for residential & commercial properties.
- New Town (Rajarhat) – Planned township, rapid growth, many gated communities, near airport & IT sector.
- Tollygunge – Known for its connectivity (metro, road) and greenery.
- Behala – Emerging area with affordable options.
- EM Bypass & Garia – High-end developments and new projects coming up, especially along the Bypass.
- Rajarhat – Quite close to the airport, has good connectivity to the metro, offering lucrative investment opportunities in plots and office spaces.
- Alambazar & Baranagar – These areas are growing because of better transport infrastructure that attract many residential investors.
- Baruipur, Sonarpur, Joka, and Barasat – Are emerging as hotspots for affordable developments.
DEVELOPMENTS AND POLICY INITIATIVES
The union and state government are planning reform schemes designed to address the growing challenges in urban areas aimed at enhancing infrastructure, improving sustainability, and ensuring equitable development across West Bengal.
Kolkata’s Smart City project aims to transform the city through sustainable development, improved urban infrastructure, and enhanced quality of life for residents. This project integrates modern technology with urban planning to create a smart city that meets the needs of its inhabitants while preserving cultural heritage, say government officials.
In sync, Kolkata’s real estate market too has shown steady growth, even with the withdrawal of government incentives like stamp duty and circle rate reductions in mid-2024, demonstrating a strong underlying demand.
Affordable housing remains a key driver in Kolkata’s real estate market compared to other top metros of the country. The state government is implementing various initiatives through multiple verticals, such as Banglar Bari/Housing for All (U) Mission, Nijasharee Housing Scheme, and Akanksha Housing Scheme. The focus on affordable housing aligns with middle-class aspirations and continues to attract buyers despite economic challenges.
On the other end of the spectrum, developers are introducing branded residences and upscale developments to cater to high-net-worth individuals. While affordable housing dominates sales volume, luxury developments are carving a niche among premium buyers seeking exclusivity.
Kolkata’s real estate market demonstrates resilience and adaptability in response to changing policies and economic conditions. While affordable housing remains the backbone of the market, luxury developments and infrastructure improvements are shaping its future trajectory. With strong underlying demand and favourable monetary policies, Kolkata is poised for sustained growth in its real estate sector.
While affordable housing remains the backbone of the market, luxury developments and infrastructure improvements are shaping its future trajectory.
FUTURE GROWTH CATALYST
One of the recent interventions that will prove to be a growth driver for the city has been the $200 million loan sanctioned by the Asian Development Bank (ADB) to enhance the development of climate- and disaster-resilient infrastructure in Kolkata, aimed towards improving the city’s liveability.
“The project builds on ADB’s 25-year partnership with the Kolkata Municipal Corporation (KMC), working to make Kolkata a more liveable city through phased, integrated investments to improve urban services, operational efficiency, institutional effectiveness, and long-term sustainability,” said ADB Water and Urban Development Portfolio Management Unit Head Hikaru Shoji.
In addition, the project will support KMC in developing a comprehensive IT-based asset management system, enhance property tax revenue, and expand the early flood warning system developed through an earlier ADB intervention.
The city, with deep roots in art, music, literature, and cinema, a passion for football, and Adda Culture, is on the path of economic glory. And supporting its progressive march is Kolkata’s “Vision 2025” plan, developed by the Kolkata Metropolitan Development Authority (KMDA), which aims to improve the quality of life and create an environment for economic growth, while also conserving heritage.
The city with deep roots in art, music, literature, and cinema, a passion for football, and Adda Culture is on the path of economic glory, supported by Kolkata’s “Vision 2025” plan.
