Famous as the Palace City of India, Kolkata has now caught the attention of national and international real estate developers and investors. As per recent reports, two major US companies have set themselves up to pump in billions of dollars in building world-class properties in Kolkata.
The US-based Wire Group has reportedly zeroed in a 5-lakh square meter commercial real estate project at Salt Lake area. The project would be just opposite to the office of Wipro, India-based global IT giant.
While there are several real estate projects to be launched under the partnership of national and international real estate players, the Wire Group alone has planned to infuse as much as $ one-billion into Kolkata properties, over the next couple of years.
According to market sources, the company is primarily targeting the growing industry of IT and pharmaceuticals in the city. It is even being said that a US-based pharmaceutical company is planning to set up its Research & Development (R&D) centre in Kolkata.
Current commercial real estate scenario
The Central Business District (CBD) of Kolkata, comprises Old Dalhousie, Chowrangee, Camac, Park Street and AJC Bose Road does not offers much of choice in Grade A office space as more than three-fourth of the commercial buildings here are traditional and identified as Grade B and C office.
Although, it is not that you easily get commercial property in Kolkata CBD. According to property brokers, the vacancy rates are very low at the CBD locations. The observation is corroborated by industry reports that quote vacancy rates at Kolkata CBD between 0.50 and 1.0 per cent.
This is why quality commercial properties at the suburban areas like Salt Lake and Rajarghat are simmering with demand.
Owing to low vacancy rates, the rental values at the CBD have undergone an appreciation of about 50 per cent in the past 12-18 months. As per the market sources, the average rental at the Kolkata CBD area is Rs 120 per sq. ft. The same hovers between Rs 85 and Rs 105 per sq. ft in the suburbs.
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