High rise apartments in vogue among high net worth investors

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Mumbai, Aug 15 : Post inflation, the investor community, including high net worth individuals (HNWIs), have started concentrating on markets such as Kolkata, Burdwan, Durgapur, Siliguri and Haldia in order to buy high rise apartments. As a result, real estate majors are looking at converting factories and bungalows into high-rise apartments based in Kolkata, Haldia and other parts of West Bengal. Besides this, Gurgaon, NCR Delhi, Pune, Hyderabad, Chennai, Bangalore, Goa, Chandigarh are considered growing markets for investors in high-rise apartments.

According to Avrajit Kar, vice-president - marketing, South City Projects, “The investor community in Kolkata and its peripherals is expected to increase from 20% to 30% within a year as the realty prices in Kolkata are more economical as compared to that of the metros, including Mumbai. For instance, an apartment in Baliganj area in Kolkata is priced at Rs 4,000 to Rs 6,000 per sq ft as compared to Rs 10,000 to Rs 15,000 per sq ft in the posh Bandra in Mumbai.”

With the increase in the number of investors in Kolkata, Kona Expressway area, Bantala area and Rajarhat are going to be its new satellite cities, Kar added.

The southern market too is seeing much activity. Says Ravi Ramu, director, Puravankara Projects, “Due to inflationary trends, we are now looking at speeding up development of high rise apartments in the South. We have already been redeveloping bunglows into high rise apartments which will now be done at a faster pace. With a land bank of over 125 million sq ft, the group has over 20 mn sq ft residential and commercial space currently under construction. Included in this are on-going residential projects amounting to 18.30 mn sq ft comprising 11,010 homes.”

Mumbai-based K Raheja Property is planning to enter the East, especially, Kolkata to set up high rise apartments apart from other Tier II and III cities. DLF and Unitech are planning to set up high rise apartments near Kona Expressway, Bantala area and Rajarhat. Meanwhile, Merlin Group in Kolkata is planning joint ventures and tie-ups for developing properties in Chennai. Besides, Diamond Group, Fort Group in Kolkata too are planning high rise apartments in Kolkata and Chennai. Not only that, Emami Realty is also planning to develop properties down South.