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    WAREHOUSELANDRESIDENTIALRETAILOFFICE

    Values trends & opportunitiesin the Kolkata real estate market

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    After recovering from the implications of the global financial

    turmoil in 2009, the real estate market across India began to

    show a sign of turnaround from the beginning of 2010 as low

    interest rates, availability of funds, introduction of affordable

    homes, contributing to a faster growth.

    With strong rise in sales as well as new launches seen at mid-

    2010 on the backdrop of improving consumer confidence,

    supported by Indias surging economy which has been growing

    at an 8.9% pace for the past three quarters, Kolkata real estate

    market continued its strong growth trajectory till the end of 2010.

    Although, the recent effect of gradually increasing interest rates

    and prevailing high inflationary pressure is posing a little threat tothe growing real estate demand, but the general outlook for the

    Kolkata property market will remain fundamentally strong and

    the current upswing is likely to be continued in medium to long

    term.

    Best wishes,TEAM NK.

    2010 Year End Market Review

    DEAR FRIENDS,

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    2010 Year End Market Review

    Office ............................... 4

    Retail ............................... 6

    Residential ............................... 9

    Land ............................... 13

    Warehouse ............................... 14

    CONTENTS

    About Kolkata Market Report

    The2010KolkataMarketReport is a unique tool that reviewsand summerisesthereal estate activities of thepast year on

    major locations across theKolkata market. As a reference

    tool, it reviews values, economies, social factors and other

    conditions that impact a market.

    Each analysis was completedby theNK Realtors professionals

    whoareexpert at reviewingthe local market, identifyingtrends

    and reportingmarket activity.

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    CORPORATE SERVICES

    Triggered by the positive economic

    sentiment and encouraged by

    several significant transactions

    Kolkata office market witnessed an

    increase in activity throughout 2010.

    With a huge talent pool and high quality

    infrastructure, Kolkata has become one of

    the major private investment destinations

    in the country. The State had attracted

    over Rs. 8,400 crore investments in

    various sectors such as Iron and Steel,

    Petrochemicals, Information Technology

    and Food Processing etc. in 2009.

    Kolkata's IT & ITeS sector is one of the

    important driving forces of the state's

    economy which employs some 90,000

    people. The sector registered 8 percent

    growth during the year 2009-2010. IT &

    ITeS offices located in the sub urban

    areas of Sector-V, New Town and Bantala

    are currently driving the majority of office

    market demand in Kolkata. The demand

    in the IT & IteS sector has got a major

    boost in November, this year, when

    INFOSYS Indias leading IT companyacquired 50 acres land from the state

    government in Rajarhat to build their

    campus.

    Kolkata office market has expanded

    rapidly in the SBD areas in recent years.

    Commercial properties available in these

    locations have quickly gained popularity

    amongst the investors as well as end

    users. A wide range of state-of-the-art

    office buildings combined with good

    infrastructure at extremely reasonable

    prices have made these locations popular

    as new office destinations to many

    occupants other than IT & IteS companies

    in recent times. At present, Kolkatas main

    IT corridor, Sector-V and New Town are

    considered as the most sought-after office

    locations in Kolkata. These two locations

    have virtually no more vacant land where

    IT companies can expand further. After

    the introduction of Bantala as a new IT

    location by the state government, another

    promising new location is coming up at

    Nonadanga near Ruby Hospital to cater

    to the growing need of IT & ITeS

    companies in and around Kolkata. HSBC,

    HCL and Rolta India has acquired five

    acres of land each from the government

    to built their new facilities at Nonadanga.

    With the revival of office space demand

    from the IT and ITeS sector, Kolkata office

    market has witnessed strong buying and

    moderate leasing activities over the past

    one year where investors have outpaced

    the end users. Investors are mainly

    buying vacant spaces in the upcomingcommercial buildings located in the

    secondary business districts (SBD) of

    Topsia, Kasba connector, Sector-V and

    New Town. Around 1.8 million sq.ft,

    including both lease and outright office

    transactions have happened in Kolkata

    over the past one year.

    With the renewed confidence amongdevelopers, the positive sentiments in the

    economy has led to a rise in construction

    activity across the city.

    The absorption

    has been driven largely by the IT & ITeS,

    telecom, steel, manufacturing and

    engineering sectors.

    During the last six months of 2010, CBD

    area has witnessed the launch of a

    90,000 sq.ft. commercial project by Belan

    Group at Woodburn Park and the

    completion of Diamond Prestige, a

    2,37,000 sq.ft. of commercial building on

    AJC Bose Road by Diamond Group,

    Topsia has seen the copmpletion of PS

    Pace (1,00,000 sq.ft. approx.) developed

    by PS group.

    Apart from some ongoing large office

    projects such as DLF IT SEZ, Unitech

    Infospace SEZ, Ambuja Ecospace Phase

    II, Videocon E-Habitat, Merlin Infinity etc.in New Town, and Sector-V, Kolkata has

    seen the launch of some new office

    projects such as Infinity BNKe, Ambuja IT

    Park, Mani Twin etc in Sector-V and New

    Town in the 2nd half of 2010. Few other

    projects such as PS Srijan Tech Park-II,

    the 8,00,000 sq.ft. IT Park, a joint venture

    between PS Group and Srijan, a 3,00,00

    sq.ft project by Space group etc are in the

    pipeline.

    Approximately 8,00,000 sq. ft. office spaceconstruction was completed in the SBD

    markets duringthe lastsix months.

    Kolkata office market2010 has witnessed a strong investor interest through out the year with high levels of buying.

    Source: NAI NK Realtors Research

    Key Office Transactions(Lease) in 2nd half of 2010

    2010 Year End Market Review

    4

    Accenture Infospace New Town 1,90,000

    Technopolis ,000

    Just Dial Godrej Waterside

    DHL Benfish Tower

    Hyundai Infinity Benchmark

    L&T Sector-V

    Sector-V 13,000

    Honeywell PS Srijan Techpark Sector-V 11,000

    Sector-V 10,000

    Salva Resources Ambuja Ecospace (SEZ) New Town 10,000

    Sector-V

    AN Capital Infinity Think Tank-I Sector-V 5,000

    LG Electronics Vishnu Towers Sector-V 4,300

    CMC Vishnu Towers Sector-V 4,200

    46

    8,000

    Letse Software & Services Infinity Think Tank-I Sector-V 4,800

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    GRADE - A, Office Rental Values

    GRADE - B, Office Rental Rates

    CORPORATE SERVICES

    FORECAST

    SBD areas such as Kasba and Topsia areexpected to see a marginal rise in overall

    lease and outright values while New Townand Sector-V will likely see a strong rise

    in overall lease and outright values in theshort term.

    Present downward trend in overall leaserates in the CBD area Is likely to be

    continued. However, the outright rate willcontinue to heat up.

    Buying activity in the SBD areas are

    likely to be more in numbers in the

    coming months.

    Location Range (Rs/Sq.ft.)

    ParkStreet 12,000-16,000

    CamacStreet 12,000-16,000

    AJCBoseRoad 8,000-16,000

    Dalhousie 7,000-10,000

    Topsia 8,000 - 9,000

    Kasba Xing 7,500 - 8,500

    Salt Lake, Sector-V 4,000 - 5,550

    Rajarhat, NewTown 3,500 - 4,500

    2010 Year End Market Review

    5

    VACANCYRATES

    During the last six months of 2010, overall

    vacancy rates in the CBD area remained

    unchanged and stayed at around 4%. In

    Topsia the overall vacancy rates

    decreased from 14% to 13%. In Kasba

    Connector Grade-A vacancy rate

    increased from 20% to 26%. This is a

    result of few new supply has been added

    to the inventory, thus increasing overall

    vacancy. The highest increase in vacancy

    occurred in the New Town. Since mid-year

    Grade-A office vacancy increased from

    43% to 45% in New Town. Continued

    completion of office space in New Town

    has resulted in a increase in vacancy

    rates. Overall vacancy rates in Salt Lake

    Sector-V increased from mid-year from

    30% to 33%.

    LEASE RATES

    During the last six months of 2010,

    Kolkatas main CBD area such as Park

    Street, Camac Street and AJC Bose Road

    has witnessed a decline of almost 7% in

    Grade-A office lease rates while the lease

    rates of Grade-B office in the same

    locations increased marginally except

    Camac Street. The current lease rates for

    Grade-A offices ranges between Rs 95-

    120/sq.ft/month and for Grade-B offices

    ranges between Rs 80-105/sq.ft/month.

    New Town has witnessed the maximum

    Grade-A office lease rate growth (around

    16%). There were no changes recorded in

    Grade-A office rentals in Topsia. Sector-V

    had a marginal growth in overall office

    lease rates which is currently hovering

    between Rs 40 - 50/sq.ft/month.

    Salt Lake New TownD alhousie Topsia

    A.J.C. Bose RoadPark S treet Camac S treet

    1 2 0

    1 0 0

    8 0

    6 0

    4 0

    0

    2 0

    20082007 2009 2010

    Q2 Q3 Q4 Q2Q1 Q4 Q4 Q4Q1 Q1Q2 Q2Q3Q 1 Q3 Q3

    Proposed P.S. SRIJAN TECH PARK-II at Sector-V

    Camac Street

    Salt Lake New TownKasba Topsia

    A.J.C. Bose RoadPark Street

    16 0

    12 0

    10 0

    80

    60

    40

    0

    14 0

    20

    20082007 2009 2010

    Q2 Q3 Q4 Q2Q1 Q4 Q4 Q4Q1 Q1Q2 Q2Q3Q 1 Q3 Q3

    Current Grade-A and Grade-B Office Vacancy Rate

    G ra d e - A O f f ic e V a c a n c y G r a d e - B O f f i c e V a c a n c y

    Source: NAI NK Realtors Research

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    RETAIL SERVICES

    Kolkata retail marketMost of the mall developers in Kolkata have reactivated their mall projects over the pastthree to four quarters.

    2010 Year End Market Review

    6

    On the backdrop of improving

    consumer confidence, supported

    by the countrys surging economy

    which has been growing at an 8.9% pace

    for the past three quarters, Kolkata retail

    market has experienced a spectacular

    turnaround in sales as well as new store

    expansions over the last six months of

    2010.

    The growth has been spectacular in

    almost every sectors of organised retail

    such as food & grocery, footwear,

    consumer durables, furniture, eye wear,watches, mobile & accessories, beauty

    care services, health & wellness, F&B,

    automobile, entertainment etc. All have

    expanded across Kolkata over the past

    one year.

    Continued success of Future Groups

    various retail formats operational in

    Kolkata and other tier-II towns have

    helped other brands such as Reliance

    Retail, RPG Retail, Aditya Birla Retail etc.

    to execute their expansion plan in full

    gear across all their formats in the last

    phase of current year.

    In the entertainment sector, Kolkata has

    seen some regional players like Priya

    Entertainment, Eyelex Films etc. to come

    up strongly with their economic format in

    2010. Understanding of the local market,

    strong hold on regional movies,

    reasonable ATP (Average Ticket Price)

    etc. are all helping the regional level

    multiplex operators to give tough

    competition to national level players.

    The concept of conversion of old cinema

    hall to multiplex has already started in

    Kolkata. Hind-Fame, a two screen

    multiplex is coming up on closed Hind

    Cinema at Ganesh Chandra Avenue in

    central Kolkata.

    The residences of Salt Lake will see the

    opening of HDILs first multiplex

    StandaloneTransactionsin MatureUrbanAreas

    Mature urban markets have also seen a

    number of new stores to come up in the

    last couple of quarters. However,

    majority of the newly opened stores are

    small-format stores.

    Broadway shortly in Down Town mall.

    Multiplex goers in Kolkata are going to

    get the international viewing experience

    with the opening of Mexican multiplex

    chain Cinepolis within a couple of years.

    The Mexican chain has signed their first

    property in upcoming Acropolis mall.

    The ever expanding food and beverages

    sector particularly the restaurant segment

    consistently expanded across Kolkata

    through out the year. The restaurant

    industry showed its buoyancy even during

    the recession. All kind of restaurantformat has opened over the past few

    months. Amongst them the lounge format

    is fast gaining popularity in Kolkata.

    A restaurant and lounge bar, Hops has

    been operational on a 7,500sqft property

    in South City Mall since September, 2010.

    Hushh the Resto Lounge and Bar has

    opened in South City mall in November,

    2010.

    Another lounge bar Nocturne has come

    up on Theater Road at year end.

    The House of Kommons (HoK) a lounge

    bar has opened in Salt Lake, Sector V in

    October, 2010.

    The newest fine-dining addition to the city

    is Zodiac, on Loudon Street by

    Welcomgroup Kolkata.

    News the fine dining restaurant at

    Hometown Mall in Rajarhat opened in

    November, 2010.

    Apart from the opening of Lounge Bar &

    Restaurant, Kolkata has seen some local

    restaurant chains to expand in various

    part of Kolkata over the past six months.

    Azad Hind Dhaba opened stores in

    Alipore, Baishnabghata Patuli near Garia.

    Alibaba another local chain opened up

    in Ajay Nagar near Bengal Ambuja

    housing project, Gariahat, Chowringhee

    etc.

    In Kolkata, the early sign of revival was

    first set out in the sub urban locations.

    Areas such as Garia, Narendrapur, NSC

    Bose Road, Raja SC Mallick Road,

    Behala, Lake Town, BT Road,

    Barrackpore, Sodepur, Barasat, etc. have

    witnessed a significant number of retail

    space leasing in the past twelve months.

    The newly opened showrooms are a

    mark of the buoyancy of the Kolkata retai

    sector. However, these are mostly smalle

    format stand alone properties located on

    the ground or ground and first floors

    combined.

    Increased new and quality supply, low

    occupancy cost as well as an overall

    improvement in consumer confidence

    have helped spur the retail sector in the

    suburban locations across Kolkata.

    Source: NAI NK Realtors Research

    I Core Planet Barasat 25,000

    AzadhindDhaba Baishnabghata Patuli 2,500

    (app.

    Godrej Interio NSC Bose Road 7,000

    Mega Mart Lake Town 4,000 Bengal Hyundai BTRoad 3,500 Bata Barasat 3,000

    Khadim Garia 3,000

    MPJewellers Garia 2,000

    HeroHonda NSC Bose Road 1,600 MP Jewllers BehalaTram Depot 1,000

    B-18 Chowringhee 25,000 (app.)

    Krazy Kebabs N.H. Sarani 4,000 Samsung LeeRoad 4,000

    Calvin Klein Woodburn Park 2,500

    Tanishq B.B.Ganguly Street 2,500

    UrbanGypsy Dover Lane 1,500

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    Significant Mall Transactions

    Reliance Retail Avani Riverside 1,00,000(app.)

    Spencers Retail Axis 50,000

    Cinepolis Acropolis 40, 000

    Bigbazaar Wood Square 30, 000

    Star Mark Mani Square 15, 000

    Future Mall Supply

    LakeMall LakeMarket Space Group 2,50,000 2011

    North City LakeTown Diamond Group 3,00,000 2011

    Avani Riverside Howrah Avani Group 3,00,000 2011

    SishirKunj Madhyamgram Bengal Shelter 3,00,000 2011

    Acropolis Kasba Merlin Group 3,50 000 2012

    Varna Parichaya College Street Bengal Shelter 12,00,000 2012

    Spencers Galleria Park Circus RPG Group 4,00,000 2012

    ,

    RETAIL SERVICES

    Source: NAI NK Realtors Research

    2010 Year End Market Review

    7

    Varnaparichay Indias first integrated book mall at College Street near Sealdah

    Forum Court Yard, the extension of

    Forum mall located at Elgin Road, has

    opened its door in August, 2010. This is

    the only fully operational mall that came

    up in 2010 in Kolkata. Court Yard has an

    impressive list of international premium

    brands that include Aldo, Promod,

    Mango, Charles & Keith, Black Label,

    Benetton etc.

    Other international brands such as Jack &Jones, Vero Moda, Only, Pieces, Esprit,

    Timberland etc. have also opened stores

    in the South City mall, an operational

    upmarket mall located on Prince Anwar

    Shah Road in South Kolkata.

    Apart from being present in malls,

    international brands have also started

    actively looking at new stand alone

    properties coming up in upmarket areas.

    Kolkata has also witnessed the opening

    of 3,50,000 sq.ft. Axis Mall developed

    by Peerless Group at New Town, an

    upcoming satellite township in Rajarhat in

    April 2010. The mall is now partly

    operational and yet to find sufficient

    footfall due to lack of potential

    catchments in the neighbourhood. The

    mall initially started with a 35,000 sq.ft.

    four screen multiplex Bioscope and a

    3,500 sq.ft. food court Aheli. Bioscope is

    the first operational economical format

    multiplex that came up in Kolkata by Priya

    Entertainment, a local multiplex operator.

    Reliance is going to open a 6,000 sq.ft

    footwear store Footprint in the same

    mall by January 2011. This would be their

    first footwear chain store in Eastern India.

    As retailers are aggressively looking at

    mall spaces with renewed interest,

    developers cranes have started swinging

    again on various mall projects which were

    stalled during the downturn.

    With a number of larger lease

    transactions by some big retailers in the

    upcoming malls, Kolkata retail sector

    seems to have managed to move out of

    the slow down shadow in the end of 2010.

    Kolkata did not witnessed too many large

    mall lease transactions in the1st half of

    2010. Reliance has finalised a deal with

    around 1,00,000 sq.ft. in upcoming Avani

    Riverside mall in the 2nd half of the

    current year. This was so far the largest

    retail space transactions in Kolkata that

    happened after the ease of recession

    followed by the Spencers 50,000 sq.ft

    space uptake in Axis mall. Reliance will

    likely house its non-food retail formats,

    such as Reliance Digital, Reliance

    TimeOut, Reliance Home Kitchen,

    Reliance Jewels, Reliance Trends etc. in

    the upcoming mall.

    Developers in Kolkata have intensified

    their construction as well as marketing

    activities in projects such as AVANI

    RIVER SIDE on Foreshore Road in

    Howrah, ACROPOLIS near Kasba

    Golpark, SPENCERS GALLERIA at Ami

    Ali Avenue in Park Circus, VARNA

    PARICHAYA at College Street in Sealdah

    over the past couple of quarters.

    Approximately 1.15 million sq.ft. of new

    mall space will be added in the year 2011

    and in the year 2012, another 1.95 million

    sq.ft. (approx) mall space would be

    added to the greater Kolkata market.

    VARNA PARICHAYA, a huge 12,00,000

    sq.ft. mall is coming up in College Street

    near Sealdah station. The mall will be

    spread across nine levels. With two floors

    (G+1) fully dedicated for book shops, the

    mall aims to become a hub for book

    lovers community of Kolkata. A major

    tenant at Varna Parichay is Big Cinemas.

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    MALL VACANCY RATES

    Operational mall vacancies in Kolkata have

    declined considerably in the end of 2010

    and currently stays at the lowest level. The

    overall year on year vacancy rate in the

    operational malls has declined to 1.70%

    from 2.5% a year earlier.

    The City Centre mall at Rajarhat had the

    highest vacancy level at around 2.75% and

    City Centre mall at Salt Lake had the lowest

    level of vacancy with almost 0% at the end

    of 2010. Vacancy rates in the South City

    Mall and Forum mall were at around 0.20%

    and 0.50% respectively in the end of 2010.

    MALL LEASE RATES

    On account of aggressive retailers drive for

    mall space and limited new mall space

    supply, average lease rates in the

    operational malls as well as in the up

    coming malls across Kolkata market have

    witnessed an increase ranging between 5%

    to 25% in the past two quarters.

    In the end of 2010 CBD area malls had the

    maximum q-o-q rental growth at around

    25%. From October 2009 to the June of

    2010, CBD area malls did not witnessed

    any rental growth and currently have

    rentals in the range of Rs 175-300 / sq.ft. /

    month.

    The mall lease rates graph on the right

    shows an interrupted deep green line from

    4th quarter of 2009 to 2nd quarter of 2010

    which indicates the mall lease rates in

    northern Kolkata. This is because, from the

    beginning of 2009 development of all the

    planned malls in that part were either

    shelved or cancelled which has been on

    offer again for the past two quarters of

    2010. Current rental rates in north hovers

    between Rs 60-120 / sq.ft. / month.

    Quarter on quarter mall lease growth rates

    in the south of Kolkata, Salt Lake, EM

    Bypass and Rajarhat were around 23%,

    21%,19% and 5% respectively at end-

    2010. Mall lease rates in those areas have

    been in the range of Rs (70-250) / sq.ft /

    month, Rs (60-225) / sq.ft. /month, Rs (75-

    200) / sq.ft. / month and Rs (60-120) / sq.ft.

    / month respectively in the end of 2010.

    Q4, 2009 Q1, 2010 Q2, 2010

    City Centre-II CityCentre-I Metropolis Mani Square South City Forum Home Land

    5%

    4%

    3%

    2%

    0%

    1%No Vacancy

    inCity Centre-I

    South E MBypassCBDNewTown Salt LakeNorth

    3 5 0

    3 0 0

    2 5 0

    2 0 0

    1 5 0

    1 0 0

    0

    5 0

    20092008 2010

    Q2 Q4 Q4Q1 Q1 Q3Q2 Q2 Q4Q3Q1 Q3

    Mall Lease Rates (average price)

    2009

    New TownEastSouthCentral (CBD) North

    2008 2010

    Q2 Q4 Q4Q1 Q1 Q3Q2 Q2 Q4Q3Q1 Q3

    2 5 0

    2 0 0

    1 5 0

    1 0 0

    0

    5 0

    High Street Lease Rates (average price)

    FORECAST

    With resurgent demand from the buoyant

    retail industry, Kolkata will likely see more

    transactions in the coming months.

    However, the volume of key high street

    transactions likely to be more in the sub

    urban locations.

    Falling vacancies and rising rentals in

    malls will spur new malls in the coming

    quarters.

    HIGH STREET LEASE RATES

    In the last one year key high street lease

    rates across locations in Kolkata has

    witnessed a slight decline except

    Rajarhat. This mainly due to the

    slackening demand from the retailers.

    Prevailing rentals seems to be high

    enough to the retailers to make a store

    financially viable in those areas. Rentals

    in the CBD area hovers between

    Rs 90-200 /sq.ft / month.

    RETAIL SERVICES

    Source: NAI NK Realtors Research

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    RESIDENTIALSERVICES

    Kolkata residential market

    Kolkata residential market has

    witnessed a strong growth interms of sales as well as new

    launches over the past four quarters.Increasingly buoyant economic

    conditions, low mortgage rates,

    kept the market up till the

    end of .

    As the demand increases from both

    owner-occupiers as well as from

    investors, properties in all price ranges,

    from mass market to luxury, appreciated

    over the past two quarters. However,

    housing prices in Kolkata displayed acontinuous upward momentum since

    October, 2009.

    Average house price in Kolkata have now

    crossed the pre-recession highest price

    level (Rs 5174 per square foot, recorded

    in the 3rd quarter of 2008) and is currently

    staying at an all-time high level 797

    ,

    s

    ranged from 10% to 35% across the micro

    markets over the last twelve months.

    The pie chart on the right shows the

    percentage break up of house price points

    of the ongoing residential projects in and

    around Kolkata. As can be seen, the Rs

    2001- 3000 per square foot price bracket

    has had the largest volume of new supply

    by far with 47%, with around 59% of these

    in the Rs 2001- 2500 per square foot

    price bracket.

    Rs 8000 per square foot

    has had a considerable

    rising

    salaries has

    2010

    Rising demand and the

    increasing input cost such as building

    materials, land, construction labour and

    other items devoted to the construction of

    housing projects were responsible for the

    continued house price growth during this

    period.

    (Rs 5

    per square foot recorded in the 4th

    quarter of 2010).

    Projects have witnessed price rise

    With around 9% share, the apartment

    prices at over

    new

    supply.

    volume of

    Zone wise House Price Trend

    2010 Year End Market Review

    Overall House Price Growth in Kolkata

    Source: NAI NK Realtors Research

    Percentage Share of House Price Points (Kolkata)

    12000

    10000

    South

    South East NorthEast New Town

    South WestSouth CentralCentral

    2008

    8000

    6000

    4000

    0

    2007 2009 2010

    2000

    Q2 Q3 Q4 Q2Q1 Q4 Q4Q1 Q1 Q3Q2 Q2 Q4Q3Q1 Q3

    House prices in Kolkata displayed a continuous upward momentum in 2010.

    20082007 2009

    Q2Q3 Q3 Q3Q4 Q4 Q4Q2 Q1Q1Q1 Q2

    2010

    Q2Q1 Q3 Q4

    6 0 0 0

    5000

    4000

    3000

    2000

    0

    1000

    9

    12%

    59%

    9%1%1%

    16%

    9%

    Rs. 2001- 250

    Rs. 2501- 3000

    47%

    Below Rs 2000

    Rs 3001- 4000

    above Rs 8000

    Rs 2001- 3000

    Rs 7001- 8000

    Rs 6001- 7000

    Rs 5001- 6000

    Rs 4001- 5000

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    2010 Year End Market ReviewRESIDENTIALSERVICES

    Source: NAI NK Realtors Research

    Kolkata prime residential marketsPrime properties in some pockets have seen steep rise in price over the past few quarters

    Prime residential market in Kolkata has

    experienced a significant growth over the

    last twelve months.

    Continued economic growth, recovery in

    the IT job market and shortage of prime

    properties have helped spur transaction

    and price gain in the prime segment in the

    end of 2010.

    The resurgence in demand came mainly

    from wealthy domestic buyers such as top

    class businessmen, highly paid IT

    professionals and public sector

    employees.

    Prime properties are becoming

    increasingly unavailable and unaffordable

    in the areas like Queens Park, Sunny

    Park, Ballygunge Circular Road, Alipore

    and central Kolkata such as Elgin Road,

    Roland Row etc. Since Kolkata is

    suffering from a lack of sufficient prime

    properties in those areas, many would be

    buyers have started exploring options in

    new pockets, such as Tollygunge, E.M

    Bypass, VIP Road, Rajarhat etc. These

    pockets have witnessed a strong supply

    growth over the last six to eight months.

    0

    8,000

    6,000

    4,000

    2,000

    10,000

    12,000

    14,000

    16,000

    Lake Town BallygungeCircular Rd.

    MayfairRoad

    AliporeLoudonStreet

    GurusadayRoad

    EM Bypass(Central)

    New Town

    High Price Point, Q4-2009 High Price Point, Q4-2010

    Low Price Point, Q4-2009 Low Price Point, Q4-2010

    The new pockets have witnessed strong

    absorption compare to other established

    prime locations. This was mainly because

    of a striking difference in prime property

    values between the established markets

    and new pockets.

    Properties available in the above

    mentioned areas considered as ultra

    prime where current rate hovers between

    Rs10,000 and Rs15,000 per square foot.

    Prices of properties available in new

    pockets are well below the value level of

    ultra prime properties and vary from Rs

    4500 to Rs 8500 per square foot.

    Prices of prime properties in Kolkata have

    been continuously increasing since the

    beginning of 2010. While prices of prime

    properties increased throughout Kolkata,

    certain locations clearly stand out such as

    E.M Bypass, Ballygunj Circular Road,

    Gurusady Road etc. The highest average

    year on year price growth has been on

    the E.M by pass (central) and its nearbyareas at around 44%.

    The second highest average price growth

    was in the VIP Road area at around 33%.

    Established prime areas like Alipore

    (20%), Ballygunge Circular Road (23%),

    May Fair Road (25%), Gurusaday Road

    (23%), Loudon Street (24%) have

    witnessed strong year on year average

    price growth. Prime properties in New

    Town and Rajarhat area saw the lowest

    average price growth at around 18% fromthe 4th quarter of 2009 to the 4th quarter

    of 2010.

    Areas like New Alipore, Roland Row,

    Elgin Road, Golf Garden are expected to

    see the launch of few prime and ultra

    prime category properties from the

    developers like Ideal Group, PS Group,

    South City Group and Simplex Group in

    the next three to six months.

    Prime supply in the last six months

    Ideal Group IronsideRoad

    DiamondGroup V.I.PRoad

    Avani Group Ballygunge Cir. Road

    Orbit Ballygunge Place

    Mani Group OnE.M. Bypass

    Signature Tower at Golf Garden

    Up coming Project

    10

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    RESIDENTIAL SERVICES 2010 Year End Market Review

    residential market have landscaped

    garden, wide open space filled with

    various recreational amenities and

    modern day facilities.

    Properties in all price ranges, from MIG to

    HIG with various amenities and facilities

    are currently fulfilling the changing market

    demand in Kolkata.

    To attract potential buyers and to ensure

    the units to be absorbed easily, most

    developers have also been tweaking their

    product offerings to match changing

    demand which have significantly helped

    developers to draw buyers interest andstimulate sales.

    Few Ongoing Residential Projects with Modern day Amenities and Facilities:

    Srijan Midlands Jessore Rd. MIG 57

    Avani Oxford VIP Road HIG 60

    PSMagnum VIP Road HIG 56

    ClubTownGarden BTRoad MIG 60

    Silver Oak Estate Rajarhat MIG 70Ideal Niketan Off EM Bypass HIG 68

    Urbana Near Ruby HIG 80

    Oasis Panditya Rd. HIG 78

    DiamondCity South Tollygunge HIG 80

    GreenfieldCity Behala MIG 74

    EdenCity Maheshtala MIG 78

    Purti Flowers Behala MIG 60

    Devaloke-DeCasa Sonarpur MIG 50

    PSSrijanSonargaon Sonarpur MIG 61

    Sherwood Estate Narendrapur MIG 57

    Kolkata markets changing housingThe launch of Sherwood Estate in the middle of 2004, revolutionised the housingmarket in and around Kolkata.

    SHERWOOD ESTATE at Narendrapur

    Source: NAI NK Realtors Research

    The types of housing projects being

    constructed in Kolkata havechanged over the years.

    The launch of Sherwood Estate by Srijan,

    Heritage and PS Group at Narendrapur in

    the middle of 2004, actually, was the

    beginning of a new era for housing market

    in Kolkata. Since then, Kolkata has been

    witnessing a change in the buyers tests

    and demands.

    The group, introduced various modern

    day amenities and facilities such as

    landscaped garden, swimming pool,

    tennis court, club, gymnasium, library

    jogging track, park, round the clock

    security and so on in the Narendrapur

    project at an affordable price for the first

    time in Kolkata which helped the middle-

    class home buyers in Kolkata to think

    differently while choosing a new home in

    a housing project. Today everyone in

    Kolkata knows that home is not just four

    walls and a roof.

    Today, an apartment with all modern day

    facilities is not a distant dream to the

    middle-class people of Kolkata.

    Majority of the current large good

    residential projects in the Kolkata

    Note: Apartment rates at over Rs. 3000/sq.ft are considered as HIG.

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    Residential Sale Rates (as on December, 2010)

    FORECAST

    Continued improvement in employment

    and pay package particularly in the IT

    sector will likely boost up the housing

    demand in the coming quarters. However

    there will likely be a gradual upward

    movement in home lone rates.

    The established markets such as Alipore

    and Ballygunge with limited land parcels

    are expected to see minor launches and

    continued price increase in the coming

    years.

    The ongoing home prices are still very

    attractive in Rajarhat compare to other

    prime locations in Kolkata. Improving IT

    job market followed by expected hike in

    pay package will likely put pressure onprime house price in New Town area.

    With anticipated increase in home loan

    rates and continued increases in house

    prices, the residential market may not see

    the type of price increase occured in

    2010. However, demand for apartment in

    Kolkata should remain strong.

    Park Street 9000-12000

    LoudonStreet 9000-12000

    Theatre Road 9000-12000

    Central

    Garia 2200 - 3200

    Narendrapur 1800 - 2500

    Rashbehari Connector 4100 - 4600

    South-East

    Alipore 10000-14000

    Behala 1700 -2600

    Batanagar & Maheshtala 1500- 2800

    South-West

    Dobson Road 3200- 3500

    G.T. Road 1600 - 3500

    Howrah

    Lansdowne Road 6000 - 8000

    Bhawanipore 6000- 7000

    P.A. Shah Road 3500-10500

    Jadavpur 3000- 4500

    Tollygunge 3600- 5350

    South

    East

    Salt Lake 3000 - 4500Beleghata 2500 - 3000

    Kankurgachi 7000-8000

    E.M. Bypass(central) 4400 - 8500NewTown/Rajarhat 1900 - 4700

    KOLKATA Location Rs./Sq.ft. KOLKATA

    North

    Location Rs./Sq.ft.Jessore Road 1900- 4050

    VIPRoad 2600 - 4850

    Shyambazar 2300- 5000

    Madhyamgram 1700 - 2100

    B.T. Road 1600- 3000

    South-Central

    QueensPark 10000-15000

    SunnyPark 10000-15000

    BallygungeCir. Road 10000-15000

    BallygugePark Road 8000-12000

    BullygungePlace 6000- 7000

    Mayfair Road 8000-12000

    Gariahat Road 6000-10000

    Goal Park 6000 - 8000Rashbehari 5000- 7000

    Source: NAI NK Realtors Research

    Demand for modern apartments with

    amenities and facilities in Kolkata

    continued to grow at a modest pace in the

    last seven to eight years.

    Kolkata fringe areas such as Garia,

    Narendrapur, Sonarpur and Baruipur in

    the south-east, Behala, Jalkal andBatanagar in the south-west, Gopalpur

    and Narayanpur on 211 Bus route at

    Rajarhat in the east, Madhyamgram in the

    north-east and BT Road in the north-west

    have been witnessing heightened activity

    in the recent years.

    Part of Behala and the adjacent

    Maheshtala municipality in the south-west

    fringe is currently undergoing a major

    transformation into a emerging residential

    location. The growth in infrastructure

    projects such as Joka-BBD Bag Metroextension, widening of the Budge Budge

    Trunk Road, a flyover from Nungi to

    Jhinjira Bazaar (Taratala) and a growing

    local population will place upward

    demand for properties over the coming

    years.

    With a number of ongoing good housing

    projects such as Diamond City West, Purti

    Colors, Greenfield City, Purti Flowers,

    Eden City and Calcutta Riverside, the

    most area has already become one of the

    important quality and affordable housinglocations in the Kolkata market.

    Of late, Rajarhat has witnessed a

    remarkable growth in home sales and

    price. In the last six months, price growth

    in almost all the projects were in the

    range between 20% and 30%.

    Projects on Rajarhat Expressway, 91 Bus

    Route and near City Centre Mall have

    been in high demand. Rajarhat area have

    witnessed the launch of Silver Oak

    Estate, Purti Star, Siddha Pine-extension,

    Ideal Abasan, Ideal Enclave-extension in

    the last six months.

    Some new projects such as Loharuka

    Group project, Shrachi Epicentre by

    Shrachi Group, Sankalpa-Extension are

    in the pipe line which will be launched in

    New Town and Rajarhat area within the

    next couple of months.

    Overall buyers sentiment towards New

    Town and Rajarhat have improved much

    in the last six months of 2010. The area

    has been on the upbeat after the

    announcement of sanctioning land to the

    IT major INFOSYS by the state

    government in November, this year.

    However, the entangled political situation

    and the poor infrastructure facilities like

    electricity, water supply had a little impact

    on the overall spirit of the new home

    buyers.

    2010 Year End Market Review

    Residential Lease Rates

    E.MBypass (NearR.B.Connector) 15-17

    8-10Garia

    35-40Ballygunge (Prime Areas)

    Narendrapur 8-10

    SOUTH - EAST KOLKATA

    SOUTH - CENTRAL KOLKATA

    SOUTH - WEST KOLKATA

    SOUTH KOLKATA

    CENTRAL KOLKATA

    EAST KOLKATA

    NORTH KOLKATA

    Ballygunge (Other Areas) 30-35

    Behala 8-10

    Alipore 35-40

    Tollygunge 10-15

    Jadavpur 10-15

    Prince Anwar Shah Road 15-20

    Park Street, Theatre Road 30-40

    E. M. Bypass (Central) 25-30

    Salt Lake 20-25

    V.I.P Road 12-15

    Shyambazar 12-15

    RESIDENTIALSERVICES

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    Location Rs./Cottah

    Industrial L and Rates

    KonaExpress wayto Dhulagar TollPlaza 0.40-0.60Million

    Dhulagar Toll PlazatoUluberia 0.20-0.35

    Uluberia to Kolaghat 0.08-0.15

    Dankuni to Srirampur (onDelhi Road) 0.25-0.40

    Dankuni to Singur (onDurgapurExp. Way) 0.08-0.30

    Srirampur toChandannagar 0.15-0.25

    Kalyani 0.15-0.25

    13

    Salt Lake(1-3.5million)

    Madhyamgram(0.4-0.8 million)

    VIPRoad(2.5-4.5 million)

    Ballygunge(7-10.5 million)

    Garia(0.7-1.5 million)

    Narendrapur(0.4-0.8 million)

    Behala(1-2million)Poilan

    (0.35-0.5 million)

    Tollygunge(1.5-2.5 million)

    Alipore(9-10.25million)

    Jodhpur Park(3-5million)

    Shyambazar(3.5-5million)

    BTRoad(0.4-2.5 million)

    Park Street(10.25-10.5 million)

    2010 Year End Market Review

    Land market activity in Kolkata and

    its periphery areas continued to

    gain momentum over the last two

    quarters.

    Developments of new housing activity in

    the fringe market grew at an

    unprecedented rate over the past one

    year.

    The residential market which has been on

    a continuous growth path over the last

    one year is currently fueling the demand

    of land in and around Kolkata.residential

    Drive for new lands to create

    land banks by these developers have

    made the land market more competitive in

    the last six months

    infrastructure such as flyovers, metro

    connectivity are gradualy being

    introduced.

    In the office market particularly in

    the IT sector, demand has come

    back again. New office

    development is gaining momentum

    across kolkata office market, however,

    the demand for land for new office

    development is maximum in the

    SBD areas such as Sector-V,

    New Town, Topsia and

    Kasba connector etc.

    Shortage of land

    and high acquisition

    cost is driving

    the developersto the SBD

    areas.

    Apart from a few

    small sized land deals

    completed in the last six months, the

    people of Kolkata has witnessed a

    significant land deal at Rajarhat in

    .

    A largenumber of developers, small to

    big have become aggressive again in the

    land market.

    , mainly in the

    suburban areas where various urban

    November, 2010

    Source: NAI NK Realtors Research

    FORECAST

    Land market activity is likely to be more

    competitive in the coming quarters a

    Competition for raw land will be more in the

    coming years and will likely to increase the

    landvalue by5% to 10% in the fringe areas

    sconstruction activity in all real estate

    sectorsare gaining momentum.

    The land market activityis likely to be more

    strong from the 2nd half of2011.

    Kolkata Land marketLand market activity in the Kolkata market continued to gain momentum backed bysteady performance of the residential market.

    LAND SERVICES

    Land Rates in Kolkata (in Rs/cottah)

    Demand of land in the industrial zones or

    parks have increased substantially overthe past couple of years. Apart from the

    government run industrial zones, a lot of

    privately owned and managed industrial

    parks have come up in the

    neighbourhood of Kolkata such as

    Dankuni, Dhulagar, Jangalpur and

    Uluberia on the main traffic routes such

    as NH6, NH2, Durgapur Expressway etc.

    Low land rates and better connectivity

    has attracted many small and medium

    sized industries and warehouses to set

    up their operational bases in these

    industrial parks.

    Shilpangan, a privately managed

    industrial park is being developed on

    80-100 Bighas of land at Dankuni by

    Unnayan Group.

    Currently infrastructure and development

    work is in progress at another privately

    managed industrial park, named Agarwal

    Commerciall Park at Dankuni.

    INFOSYS, Indias second-largest IT

    major by revenue has acquired 50 acres

    from the State government at the rate of

    Rupees 1.5 crore per acre. The land is

    located in Action Area-II, in New Town

    where the same size of land is allotted to

    WIPRO at the same rate in December

    last year.

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    Supply in thenext Twelve months

    Developer Location Sq.Ft.

    Merryl Infrastructure (NH6) 4

    3,00,000

    CCI Logistics Chamrail (NH6) 5,00,000

    MaaAmbe Dankuni (NH2) 1,00,000

    Dhulagarh ,50,000

    Meeri Chai Co. BBT Road

    14

    2010 Year End Market ReviewWAREHOUSESERVICES

    With growing demand and increasing

    development activities, Kolkatawarehouse market has consolidated its

    position as one of the growing real estate

    sectors in the end of 2010.

    telecom,

    Over the past couple of years, Kolkata is

    witnessing a spurt in development of new

    generation warehouses and logistics hub.

    These developments are coming up in the

    locations such as Kona, Dankuni,

    Sankrail, Dhulagarh, Chamrail,

    Jagadishpur etc. along the national

    highways such as NH2 and NH6.

    A number of privately owned and

    government run small and medium sized

    industrial parks have also come up in

    these areas. NH2 establishes connection

    with the North India and NH6 with the

    South and West India. As Kolkata is

    situated on a cross road between East

    and North East India, the city is

    increasingly becoming important in the

    freight corridor of East and North East

    India. Companies such as retail chain,

    telecom etc. are finding Kolkata profitable

    to establish their logistic centers and

    warehouses in these locations.

    Approximately 3,25,000 sq.ft of modern

    warehouse space was added to the

    Kolkata warehouse market in the last twoquarters of 2010.

    The expansion of modern retail and

    increasing investments in various medium

    to large scale industries such as food,

    engineering, power, steel, etc

    have captured warehouse developers

    interest substantially in recent times.

    Amongst the major

    warehouse completions, notables were

    the 75,000 sq.ft. warehouse by Pratap

    Polysec at Poly Park in Dhulagarh on

    NH6 and 50,000 sq.ft. warehouse at

    Maheshtala on Budge Budge Trunk Road

    by Meri Chai company.

    Kolkata warehouse marketKolkata which is providing an overland freight corridor between east and north-east of Indiahas seen a spurt in development of modern warehouses along the national highways.

    FORECAST

    Rental rates will likely stay in the current

    level for the next two quarters of 2011.

    Increasing demand will bring more

    supply in the coming months.

    New completion will likely push the

    vacancy rates slightly up in the short

    term.

    LEASE RATES

    During the last six months of 2010,

    warehouse lease rates across locations

    in Kolkata market have witnessed an

    increase ranging between12% and 15%.

    However, some locations like BBT Road,

    BT Road and Barasat-Madhyamgram

    area did not witness any lease rate

    growth since mid-year. Prevailing l

    s and

    Rs 22 per square feet per month across

    market

    ease

    rate currently hover between Rs. 10

    .

    VACANCY RATESDuring the last six months, the overall

    warehouse vacancy rates in the Kolkata

    market have increased, reaching 15% at

    end 2010. The highest increase in

    vacancy occurred in the NH2 and Nh6

    area. Since mid-year vacancy increased

    from 10% to16% in the NH2 and from

    13% to 17% in the NH6. This is because,

    more new supply has been added, thus

    increasing vacancy.

    Warehouse Lease Rates (median price)

    Key transactions in 2010

    FutureGroup Barasat Road 1,00,000

    Unrevealed MaaAmbe, (NH2) 1,00,000

    Tata Group Sankrail Indl. Park (NH6) 80,000

    Unrevealed Sankrail Indl. Park (NH6) 60,000

    Unrevealed Sankrail Indl. Park (NH6) 40,000

    Tenant Project/Location Sq. Ft.

    Maa Ambe, one of the reputed modern

    warehouse developers of Kolkata has

    completed the land development work at

    Dankuni on NH2 to develop a 1,00,000

    sq.ft warehouse and currently pilling work

    is going on at the plot. Land development

    work for the South City Anmol Projects

    warehouse is currently ready andconstruction will start soon.

    Source: NAI NK Realtors Research

    December2008 December2009 June 2009 December201

    NH6 NH2 Taratala-HideRoad BTRoad Barasat-MadhyamgraBudgeBudgeTrunkRoadRoad

    18

    20

    16

    14

    12

    10

    8

    6

    4

    2

    0

    Warehouse Rental Rates

    NH-6 14-18

    NH-2 11-16

    Taratala, HideRoad 16-22

    BudgeBudge Trunk Road 14-18

    B.T. Road 10-14

    Barasat-Madhyamgram 12-14

  • 8/7/2019 MARKET RP END-2010

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    NAI NK Realtors established in 1987, is one of the fastest growing,

    most active commercial real estate services firms in Kolkata. The

    firm provides clients with the best local market knowledge in the

    industry, complemented by NAI Globals professionally-managed

    international network, the largest of its kind. NAI NK Realtors team

    known for its market leadership, collaborative corporate culture,

    knowledgeable and experienced professionals and commitment toclient service.

    NAI NK Realtors services include multi-site acquisitions and

    dispositions, sublease, tenant representation, lease administration

    and audit, site searches, finance and investment services,

    demographic analysis, feasibility analysis, due diligence and

    related consulting and advisory services. For more information,

    visit NAI NK Realtors Web site at:

    This report contains information available to the public and NAI NK

    Realtors accepts no responsibility if this should prove not to be the

    case. No warranty or representation, express or implied, is made to

    the accuracy or completeness of the information contained herein.

    The same is submitted subject to errors, omissions, change of

    price, rental or other conditions, withdrawals without notice.

    www.nkrealtors.com

    15

    2010 Year End Market Review

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