Kolkata playing catch-up

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: package provided by realtors.”

An Emaar MGF spokesperson says the company has lined up mega plans for strengthening the hospitality infrastructure as Kolkata emerges as a major hub for industry, trade, commerce and investment. To cater to niche target groups, the company has entered into strategic partnerships with international hospitality companies, the Marriott Group and Intercontinental Hotels.

Prices stable

But, what’s in store for Kolkata, now that the real estate sector is being impacted by a slowdown in the economy? “The prices won’t fall very much,” says Neotia, “because they hadn’t risen much in the first place.” Todi agrees that the West Bengal market is extremely conservative. “Prices are stable but volumes have dropped primarily because market sentiments are down.” Still, properties at integrated townships are going from Rs 25 lakh to Rs 2 crore and beyond. Das points out that the average price in New Town Rajarhat—where all the big players are invested—for a branded high-income group project is around Rs 2,800 a sq ft. A Bengal Unitech executive pegs it around Rs 3,400 a sq ft—still much lower than the Mumbai or even the Bangalore levels.

An Emaar MGF spokesperson says, while some pockets are experiencing a short-term slowdown, the demand-supply metrics in Kolkata largely remain stable. “The market has not witnessed any sharp correction, deceleration or appreciation in prices, but the offtake has been relatively slow.”

Caution on malls

There’s already a rethink on malls. Says Mohta of the Merlin group, “Mall developers are rethinking plans from a sustainability perspective. But there’s room for speciality malls.” According to Kar of South City Projects, that has just opened a million sq ft plus mall in the city: “From one lone mall two years ago to 20 plus malls being planned in the next two years, Kolkata and its peripheral areas have come a long way. However, there is a word of caution as many malls might not see the light of the day. Size, location, proper planning, tenant mix, F&B options and a sustainable model is crucial to malls becoming successful.”