ET Bureau KOLKATA: Areas like Joka & Barasat have seen 30-40% rise in real estate activity over the last two years After developing Rajarhat New Town, a neighbourhood of Kolkata, builders such as Godrej Properties, Salarpuria Group, Merlin Group and Hiland Group are focusing on the city's outskirts -Joka, Barasat, Madhyamgram, Kona Expressway and Jessore Road -for residential projects.
These upcoming areas have seen a 30-40% increase in real estate activity over the past two years, according to industry body CREDAI Bengal.
Affordability and availability of land are the key factors that are driving growth in these areas. “The affordable segment is becoming the focal point for developers. There is consid erable demand for such projects and every private developer in the city is working on a blueprint to build projects on the outskirts,“ said Sushil Mohta, president, CREDAI Bengal.
According to a recent Cushman & Wakefield report, 49% of the total residential units last fiscal were in south-peripheral sub-market such as Sonarpur, Rajpur, Baruipur as the region has seen stable demand in the affordable and mid-segments.
Mohta's Merlin Group has acquired land parcels on BT Road, Garia, Baruipur, Joka and various areas in Rajarhat to develop around 10 million sq ft in the next two years.
Mumbai-based Godrej Properties too, is developing a 3-million sq ft residential project in Joka, Kolkata.
Connectivity makes the project lucrative, according to Godrej. “The lo cation offers excellent connectivity to all key areas in Kolkata, including Alipore, Park Street, Salt Lake and Tollygunge. The project will also benefit from the rapidly developing social infrastructure, and proposed developments like the Joka metro station will provide a major impetus to the area,“ said Pirojsha Godrej, MD & CEO, Godrej Properties.
Growth in demand, however, has been invisible in these areas, according to Sanjay Jhunjhunwala CEO, Mani Group. “Supply has been more than demand as every developer is bringing up more than one project in the periphery as the percentage of turnover in these low-cost housing segments might be between only 10% and 12%, but it assures positive cash flow because unlike city projects, these aren't expensive and end-users end up buying these,“ he said.
Mani is developing a 50-acre township in Durgapur IQ City that will have 2,900 residential units priced between Rs 25 lakh.
These upcoming areas have seen a 30-40% increase in real estate activity over the past two years, according to industry body CREDAI Bengal.
Affordability and availability of land are the key factors that are driving growth in these areas. “The affordable segment is becoming the focal point for developers. There is consid erable demand for such projects and every private developer in the city is working on a blueprint to build projects on the outskirts,“ said Sushil Mohta, president, CREDAI Bengal.
According to a recent Cushman & Wakefield report, 49% of the total residential units last fiscal were in south-peripheral sub-market such as Sonarpur, Rajpur, Baruipur as the region has seen stable demand in the affordable and mid-segments.
Mohta's Merlin Group has acquired land parcels on BT Road, Garia, Baruipur, Joka and various areas in Rajarhat to develop around 10 million sq ft in the next two years.
Mumbai-based Godrej Properties too, is developing a 3-million sq ft residential project in Joka, Kolkata.
Connectivity makes the project lucrative, according to Godrej. “The lo cation offers excellent connectivity to all key areas in Kolkata, including Alipore, Park Street, Salt Lake and Tollygunge. The project will also benefit from the rapidly developing social infrastructure, and proposed developments like the Joka metro station will provide a major impetus to the area,“ said Pirojsha Godrej, MD & CEO, Godrej Properties.
Growth in demand, however, has been invisible in these areas, according to Sanjay Jhunjhunwala CEO, Mani Group. “Supply has been more than demand as every developer is bringing up more than one project in the periphery as the percentage of turnover in these low-cost housing segments might be between only 10% and 12%, but it assures positive cash flow because unlike city projects, these aren't expensive and end-users end up buying these,“ he said.
Mani is developing a 50-acre township in Durgapur IQ City that will have 2,900 residential units priced between Rs 25 lakh.
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