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Pradip Chopra, Chairman Emeritus, PS Group reminiscing of the city’s real estate growth said, “In the mid-1960s, the concept of apartment living was foreign, and the market was initially sluggish with prop- erties being valued at mere Rs 38 per square feet with no buyers. However, as individual bungalows became less affordable, societal attitudes shifted, recognizing the communal benefits of apartment buildings which led to a rapid increase in property value. My career has spanned various ventures, but real estate has proven to be the most rewarding, epitomized by successful joint ventures in Kolkata and a stable growth trajectory unaffected by the volatility seen in other cities.”
Tamal Ghosal, Chairman, Shrachi Group shared his perspective, “Urban expansion has invariably led to the development of Kolkata’s outskirts, facilitated by essen- tial infrastructure such as Kolkata's Peripheral Bypass and mass transit systems, including the newly inaugu- rated metro line to Howrah. The need for high-quality infrastructure is pivotal to accommodate the increasing urban load and facilitate future city expansion.”
Anirban Gupta, Managing Director - East India,Colliers, stated, “In Kolkata's luxury housing market, properties are categorized by price per square foot: Category 1 ranges from INR 10,000 to 14,000/ sqft; Cat- egory 2 spans INR 14,000 to 20,000/ sqft and Category 3 exceeds INR 20,000/ sqft. Despite a slight decline from the peak in 2022, the market has shown robust growth compared to 2021, with an influx of approximately 1,200 new luxury properties and an equivalent volume of unsold inventory. This demonstrates a significant but fluctuating expansion within the sector.”
Basant Kumar Parakh, Managing Director, Orbit Group, added “Luxury is a subjective concept that ex- tends beyond mere price tags of real estate to encom- pass various upgrades in living conditions, such as better housing specifications. Trends show that as consumer desires evolve, so does the definition of luxury, which no longer confines itself to price alone, but includes factors like location and accessibility to key places.”
The Indian commercial market has witnessed re- markable growth, with office space consumption increasing from 30 million square feet in 2010 to 58 million square feet in 2023, translating to a 14.5% year-on-year growth, said Sidharth Pansari, Managing Director - Pri- marc Projects Ltd, President, Credai Bengal, “Catalyzed by significant government reforms such as GST and changes in taxation West Bengal is experiencing steady growth. Post-COVID era has introduced novel real estate asset classes to Kolkata, from co-living spaces to service apartments, signalling a diverse development trajectory that promises equal advancement in various sectors.”
Sharing his vision for the hospitality industry's future in Kolkata, Rishi Jain, Executive Director, Jain Group, commented, “The hospitality sector in Kolkata, partic- ularly the areas near the airport are exhibiting robust occupancy rates, reflecting the city's significance as it contributes 15% to the state's GDP, double the national average. New investments have a potential for growth given Kolkata's fewer branded hotels compared to AeroCity alone.”
DEVELOPMENT TRENDS
Anirban Gupta stated, “We are witnessing the de- velopment of condominium projects, IT parks, and the emergence of a critical issue such as the rising cost of maintenance (or common area maintenance), which is becoming an additional burden for both users and developers.”
Sidharth Pansari added, “The maintenance chal- lenge is a collective concern for all parties involved and requires a more flexible regulatory approach, particu- larly with RERA's three-month mandate for association handover. It is crucial to educate customers about the long-term financial benefits of paying slightly higher maintenance fees, as these investments contribute to substantial property appreciation over time. With con- certed efforts from stakeholders, including government intervention and legal evolution, we can significantly improve maintenance standards and working towards legislative reforms to enhance upkeep responsibilities.”
Pradip Chopra said, “Effective building maintenance is critical for preserving property values and fostering harmony among residents. Leasing a section of the property can generate substantial income mainte- nance. Moreover, integrating rental income to cover maintenance expenses ensures longevity and enhances the resale value of the property. Instituting an annual award for the best-maintained building could incentivize owners to prioritize maintenance, potentially elevating the city's aesthetic appeal.”
Tamal Ghosal articulated, “In the construction industry, labor shortages and productivity issues necessitate the integration of technology, which has successfully shortened project timelines, as evidenced by an im- pressive precast-based development in Hyderabad. Advancements such as the Online Building Plan System utilize artificial intelligence to significantly reduce human intervention in plan approval processes, streamlining operations."
On an optimistic note, Rishi Jain stated, “I am confident in predicting a 25-30% growth in our hospi- tality ventures within economically vibrant zones like Rajarhat and Salt Lake, driven by a reception-oriented local population and strategic project management.”
Sharing his insights on the projected demand for plots and bungalows in Kolkata, especially in light of their burgeoning popularity, Basant Kumar Parakh said, “Substantial growth in residential development has been witnessed within major city pockets and their outskirts, particularly in areas like New Alipore. Current market dynamics suggest a robust future for bungalow housing projects, which offer significant asset appreciation compared to apartments, rein- forcing their appeal as primary residences or luxury second homes.”
WORDS OF WISDOM
Pradip Chopra said, “Integrating historical and cultural influences into real estate development—such as designing homes in Chandannagar or Chinsurah to reflect their French or Dutch heritage enhances property significance without incurring high costs. By honouring iconic figures through design elements and immersive storytelling, like dedicating a room to the celebrity and using AI-generated artwork, one can create enriching experiences that celebrate the area’s legacy and attract premium value.”
Basant Kumar Parakh said, “Trust and transparency are paramount in real estate. We advocate for open communication and acknowledge that new regulations like RERA improve discipline, although they do not fundamentally change the inherent honesty of reputable developers.”
Sidharth Pansari added, “RERA regulations have improved customer confidence and levelled the playing field in the real estate industry. By addressing indus- try issues and giving back, the sector will continue to flourish and provide opportunities for innovation and entrepreneurship.”
Tamal Ghosal shared, “Quality infrastructure is a pivotal factor for the future of real estate, especially as urbanization increases and demands for housing and services rise. The years ahead will likely favour regions with high-quality infrastructure improvements, as evi- denced by significant developments in various sectors in recent years.”
Rishi Jain expressed, “Industry perceptions are often skewed by uninformed gossip; however, these doesn’t necessarily reflect reality, especially for a real estate developer whose most valuable offering is customer service.”
Anirban Gupta concluding with positivity said, “With sustained demand for homes expected in the coming months, Kolkata reaffirms its position as a thriving real estate market poised for further expansion.”
Despite a slight decline from the peak in 2022, Kolkata real estate has shown robust growth demonstrating a significant but fluctuating expansion within the sector--Anirban Gupta
Kolkata’s hospitality sector, particularly areas near the airport are exhibiting robust occupancy rates, reflecting city's significance as it contributes 15% to the state's GDP - Rishi Jain
With concerted efforts from all stakeholders, including government intervention and legal evolution, we can significantly improve city buildings maintenance standards - Sidharth Pansari
My approach involves reversing the traditional construction process, sourcing materials first and then designing structures accordingly, thereby reducing both cost and time- Pradip Chopra
The adoption of technology in construction isaccelerating, offering solutions for labor constraints and quality control, and is essential for the sector's evolution - Tamal Ghosal
As land prices are escalating in Kolkata, affordable plotted development is shifting to suburban locations with infra connectivity, boosting viability of such investments - Basant Kumar Parakh
