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Real Estate Market in Kolkata

The real estate market in Kolkata is comparatively cheaper than many other metropolitan cities in the country. Particularly the North Kolkata, hailed as the old and traditional part of the state of West Bengal comprises of heritage buildings and old houses of several storey. Traditional families and joint families reside in the areas like Beliaghata and Sealdah. The Netaji Subhas Chandra Bose International is also located north of the city. 

 
The post-recession period was marked by a sluggish market that refused to recover fast. The real estate investments in Kolkata for major projects and developments were delayed as the market failed to bounce back especially in the residential segment. Once a buoyant market, signs of sluggishness have set in the Kolkata real estate market.
 
Areas Rental rates Ownership rates
Belghoria, Belgachia, Sealdah (North) Rs 2,500- Rs 8,000 for 1 BHK or 2 BHK Rs 8 Lakhs onwards
Salt Lake, Rajarhat, New Town, Airport Rs 5,500- Rs 10,000 on rents. Leashed rooms are available from 1year- 5 year period Rs 15 lakhs onwards
Park Street, Theatre Road, Exide, Minto Park (Central Kolkata) Rs 3,500- single rooms as paying guests Rs 13-Rs 16 lakhs are the starting prices
 
 
While property prices in prime locations continue to rise, and the suburbs were completely devoid of investments and no builders and investors were ready to take the risk under the existing condition. 
 
For instance, in Rajarhat, that is also called the Kolkata New Town situated in the north-eastern fringes of Kolkata and Sector V (the IT hub) areas, prices have stagnated between even though construction cost has risen about 25 per cent in the last six months of 2008. 
 
In past few years, property prices have gone up by at least by 50 per cent in the areas near the two city centers in Salt Lake City and Rajarhat area, Dumdum, where the airport is located, and Park Street which is almost Central part of Kolkata. Apartments that costs around Rs 10 lakhs in 2003-04 were priced between Rs 18 lakhs -20 lakhs during May 2010. 
 

Commercial real estate market in Kolkata

 
The commercial rentals in Kolkata commercial districts rose more than 50 per cent at around Rs 100 per square feet over the last three-four months, while rental values in Rajarhat area remained steady at Rs 50-60 per square feet. According to the real estate experts and market analysts in Kolkata, the reason for the unprecedented rental growth in commercial and office space is linked to a relative slowdown in the construction activity. Moreover the NRIs are also unwilling to invest in the falling capital market. 
 
Yet affordable housing is in vogue in Kolkata than most other cities in India. The areas around Howrah, Sealdah, Kolkata Station, Shalimar, and Ramrajatala are cheaper than the Southern parts like Tollygunje, Jadavpur, Rash Behari, and Gariahat. In north the apartments in Salt Lake are highly priced. Rents in afforadable areas for 2 BHK apartments are priced between Rs 8 lakhs- Rs 14 lakhs. The table above shows the property prices in Kolkata for residential apartments in few areas under the real estate market in Kolkata.