Anirban Gupta, Managing Director, East India, Colliers expressed that Kolkata residential market has been one of the most matured markets in the country because the number of projects and apartments that get sold out in the Greenfield State are one of the highest in the country. “There is a trust factor in the market, investors are way less than the end users and NRIs form a big chunk of the homebuyers in Kolkata.”
Pradip Chopra, Chairman & Managing Director, PS Group stated, “We being first generation entrepreneurs started business with forming JVs and now it has become a popular model of building projects. It is a win-win situation for the land owner as well as the developer. The only commitment is the quality and delivery on time. And I am proud to say that for Kolkata’s builders reputation is more than anything else.”
Harsh Vardhan Patodia- Chairman & Managing Director, Unimark Group commented on the government’s role, “The government has initiated policies for ease of doing business like online sanctions, speeding up mutation and conversions of land issues and availability of documents digitally. The government reduced stamp duty by 2% and circle rate by 10% which has been a big boost to the realty sector. Additionally, the government has started a new policy of land auctions by land monetisation which is going to create land availability and it is also giving land on free hold basis. The major issue industry faces in West Bengal is the urban land ceiling (ULC) act where large-scale developments are becoming very difficult.”
Gaurav Dasgupta, Partner, Real Estate, Corporate & Commercial, Khaitan & Co added that while, the laws were favourable and demand is there, the realty industry of Kolkata lacks marketing skills. “The private developers are not marketing their projects nationally. I believe this disconnect is largely due to the tenancy laws of the state. Also, we are one of the 2-3 states that still have urban land ceiling act which prevents large scale private projects coming up in the state.”
Apurva Salapuria, Managing Director, Salarpuria Group stated, “With the opening of FDI in real estate, we have had large amounts of institutional capital flowing. Domestic institutional funds too are available but ULC is a deterrent in the flow of that capital to the state.”
Basant Kumar Parakh Managing Director, Orbit Group commented, “Authorities are listening to the needs and demands of the industry and ease of doing business is improving. Challenges remain in terms of urban development policies which too shall resolve over a period of time as the government is open to discussions.”
THE NEW TRENDS
Basant Kumar Parakh shared, “Buyers are now educated and more aware. This is the reason developers are now engaging professional facility management companies for maintenance, whether it is affordable mid-segment or a luxury housing.”
Pradip Chopra talking about promoting green buildings said, “I am trying to develop vendors for recycled building materials. This is the leap we plan to take even before the government makes it mandatory.”
Harsh Vardhan Patodia added, “Recently, luxury housing has seen an uptick in sales. With growing wealth and rising incomes, we will see more demand for premium housings in Kolkata going forward.”
Gaurav Dasgupta shared, “Making the circle rates dynamic and discount on the property registration by women like in other states will boost the real estate.”
Anirban Gupta added, “Tier 2 and 3 cities have got a huge potential. Consumptions are increasing and Gig economy is on the rise, due to which these cities offer a lot of opportunities for housing market.”
Apurva Salapuria concurred, “Cities like Durgapur and Siliguri are the next growth hubs of housing real estate as there is a lot of pent up demand of quality development in these cities.”
West Bengal real estate has lesser challenges than many other states as there is a better coordination between the buyers and the sellers.
Investments are happening in other asset classes in West Bengal such as co-living, co-working, senior living.
Government needs to market its data centres, SEZ and township schemes to the domestic and foreign investors.
The government of West Bengal has realised the importance of real estate’s contribution to the state’s GDP.
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