Tag Archives: kolkata real estate news

New property tax to hit Bengal real estate sector: CREDAI

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Kolkata Real Estate News, West Bengal Real Estate newsTrack2Realty: The real estate sector in West Bengal would be hurt if a proposed tax on property sales is introduced in the Finance Bill 2013, the Confederation of Real Estate Developers’ Association of India’s (CREDAI) Bengal chapter said on Wednesday, May 8.

This, according to CREDAI Bengal, is because valuation of properties by registration authorities in the state in many cases are much higher than their actual transaction values.

The central government has proposed a new tax on real estate transactions on the basis of assessed valuation of a property at the time of transfer, instead of levying a tax on the basis of sale price fixed when the project was initiated.

“In West Bengal, developers are largely affected due to the high valuation (of properties), which in lots of cases are more than the actual transaction price,” CREDAI Bengal President Harsh Vardhan Patodia said.

Developers said the impact of the proposed tax on the sector would be huge across India as they have to pay additional income tax on the income, which is “not actually earned” by them and similarly purchasers also have to pay taxes based on deemed income, which they have “never received”.

According to them, the impact of the new tax would be “much greater” in Bengal as in many cities, including Kolkata, the actual value of property is much less than the valuation assessed by the stamp duty or registration authorities.

“The declared circle rate (for valuations) is much higher in the state and in some cases it goes up to 25 percent to 100 percent of transaction,” Patodia said.

According to Patodia, if the state government did not rationalise the circle rate, real estate transactions would be impacted severely.

“The problem is across India. But if West Bengal does not rationalise the rate in certain areas, transactions will not take place, so the business will come to a standstill. This problem will be very peculiar to the state,” he added. RBI to launch plastic currency notes soon.

DTZ-Track2Realty study on commercial real estate-IX

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Track2Realty Exclusive: East Zone (Kolkata)

india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Kolkata real estate news, Kolkata realty, West Bengal realty news, Ambuja Ecospace, New Town KolkataThe overall retail market in the city continued to display sluggish trend with only a few major retailers expanding their operations in large format standalone stores in established high street locations.

The organized retail space witnessed low availability as only one mall of 150,000 sq ft became operational. Though the development pipeline looks healthy for 2012 and 2013, the extension in the delivery timelines coupled with negligible churn of retailers has been severely impacting the availability of mall space.

Rental values in High Streets such as Park Street and Camac Street continued to witness decent appreciation due to lack of availability and robust demand, especially from food and beverage retailers. The mall rentals remained largely stable due to limited availability coupled with restrained demand.

Best performing micro markets:

-          Organised retail space in central and suburban locations continue to be amongst the best performing retail markets in the city. High Streets such as Park Street and Camac Street continued to be the most sought after locations due to their established popularity.

Low performing markets:

-          None

Major Transactions:

Company Location Mall/High Street Area (sq ft)
Baazar Kolkata Gariahat - 12,000
Sasya Boutique Shakespeare Sarani - 10,000

Source: Market Intelligence, DTZ Research

Emerging Markets: New Town, Rajarhat

Developments expected: Circa 2 million sq ft of mall space is expected to come on stream in 2013.

Outlook

The reforms in FDI policy will not only facilitate the entry of international multi brand retailers but also fuel demand from Indian brands in the short term. With most of the new mall supply expected to be completed only six to nine months later, rents in existing malls and established high streets will witness a further appreciation across most markets.

Ends….

Kolkata realtors launch fewer projects due to delay in approvals and clearances

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Kolkata Real Estate News, West Bengal Real Estate newsIt has been quite some time that Mamata Banerjee took over the rein of West Bengal after 34 long years of Left Front rule. However, the expectations of the real estate sector that expected the property market to grow post-Left is getting dashed due to delay in approvals and clearances. In the last one year, the capital city of Kolkata has witnessed fewer number of new project launches as compared to last year.

Pradeep Sureka, Managing Director of Sureka Group and President of the Kolkata Chapter of CREDAI says, “This year the new supply in residential segment has been significantly low as before the elections approvals had stalled and even now they are very slow. But in next 3-6 months we expect things to improve.”

As per the data available with Jones Lang LaSalle India, only 4600 apartments have been launched this year as compared to 8900 last year. In the second quarter of 2011, the market witnessed the launch of four projects, offering a total of 711 new units which includes the costliest project, Atmosphere offered by Forum Group.

Though project launches have been few, the realty market unlike other parts of the country has witnessed a jump in prices by almost 15-20 per cent. Mayank Saxena, Managing Director in Kolkata for, Jones Lang LaSalle, says, “Post 2009, developers in the city focussed mainly on sub Rs.20 lakh homes, but now everyone is building bigger projects and prices have increased substantially. Last year prices in Ballygaunje, were around Rs.13000-14000 per sft which has climbed upto Rs.16,000- 17000 per sft.”

Also there has seen a price appreciation of 5 per cent in the secondary market and prices in the primary market have increased by 10-15 per cent.

JLL report adds, “A dip in the absorption rate in the city is anticipated due to the steady upward movement of the capital values, which are likely to rise by another 2-10 per cent during the upcoming festival season.”

A research analyst from an international brokerage who did not wish to be identified said, “The real estate market in Kolkata is still in a very nascent stage but prices have started to escalated and both Unitech and DLF who have projects in the city are reporting healthy sales for its launched projects.

Ambuja Realty buys RMZ’s block in Ecospace Park

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Kolkata real estate news, Kolkata realty, West Bengal realty news, Ambuja Ecospace, New Town KolkataKolkata-headquartered real estate major Ambuja Realty on Thursday, September 20, acquired the RMZ block at Ecospace Business Park in Rajarhat satellite township on the Eastern fringe of the city. According to sources, the deal size is in excess of Rs.300 crore.

According to market sources, Ambuja Realty’s acquisition of nearly 9 lakh sq. ft at around Rs.3,333.34 a sq.ft is reportedly the largest commercial property purchase in the city so far.

The previous largest real estate deal in the city was the Rs.200-crore sale of 7-lakh sq.ft (Rs.2,857.15 a sq.ft) by Emaar MGF along the Eastern Metropolitan Bypass.

“RMZ wanted to exit the Ecospace project and they made us an offer to acquire the block. Since both the Ambuja Realty Campus and RMZ blocks are located next to each other we decided to go ahead with the acquisition,” Harsh Neotia, Chairman, Ambuja Realty, said.

The deal between Ambuja Realty and RMZ was facilitated by real estate consultant major, Jones Lang LaSalle India.

Ecospace, a commercial complex, spread across 20 acres in Rajarhat was initially divided into two equal independent campuses of 10 acres each. One was to be developed by RMZ along with AIG; while the other half by Ambuja Realty.

However, RMZ citing “market conditions” wanted to exit the project. Nearly, 80 per cent of construction in the block is already complete.

“We will connect the two blocks soon,” Neotia said.

Jones Lang LaSalle facilitates Kolkata’s largest commercial property acquisition for Ambuja Realty

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Kolkata Real Estate News, West Bengal Real Estate newsIn one of the decade’s largest real estate deals in Kolkata, Ambuja Realty has acquired the RMZ block of Ecospace Business Park in New Town, Rajarhat, Kolkata. The project, which is 80% complete, encompasses about 9 lakh square feet. India’s largest and leading International property consultant Jones Lang LaSalle facilitated this deal, which once again throws the spotlight on Kolkata’s happening satellite city.

Harshavardhan Neotia, Chairman, Ambuja Realty, says, “RMZ and Ambuja Realty had got two adjacent plots of land in Rajarhat. Even our architects and structural consultants were the same. Therefore, we decided to call the entire property Ecospace Business Park. Their end was called the RMZ campus and ours was called the Ambuja Realty Campus. The opportunity to acquire Millennia Infrastructure Private Ltd. Came our way as RMZ and AIG, who were managing the RMZ Campus, wanted to exit. Given that we are already housed at Ecospace and have part of the campus, we responded affirmatively to acquiring the other part, as well.”

With this acquisition, Ecospace becomes one of the largest non-SEZ office spaces in Kolkata, offering nearly 19 lakh square feet of ultra-modern and environmentally sustainable business space, together with a unique business club ‘Ecohub’ to help foster superior work-life balance.

Mayank Saksena, Managing Director – Kolkata, Jones Lang LaSalle India, offers insights into this deal and on the potential of the proposed development by the Ambuja Group.

“Right from the initial proposal, there was no doubt that this is a winning proposition, both for our client and in real estate market terms. We at Jones Lang LaSalle consider this the perfect marriage of an outstanding asset with a Group that has accurately gauged the immense commercial real estate potential at Rajarhat, Kolkata,” states Mr. Saksena. “Rajarhat is Kolkata’s brightest rising star in terms of real estate growth, with both the commercial and residential segments holding immense possibilities for developers, occupiers and real estate investors alike. We consider it a privilege to have enabled this transaction.”

Dunlop to offload Worli property for Rs 300-350 cr

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, kolkata real estate news, mumbai real estate newsDunlop India Ltd (DIL), the Kolkata-based tyre manufacturing company has put its real estate assets on a block to raise money.

A senior official close to the development said, “Dunlop is looking to sell off its land parcels across the country, which would generate good value. The first property it has put on sale is the one-acre land parcel in Worli, Mumbai. It is in a very prime location and the company is looking to raise anywhere between Rs.300 and Rs.350 crore.”

The company has roped in international property consultants (IPC) and final binding contract of hiring of the IPC would be signed soon. The property was revalued in 2007 and pegged at Rs.120 crore.

The company has officially denied sell of any property, saying valuation work has been a routine affair.

However, sources maintain even in Tamil Nadu, where the company has surplus land, Ruia is planning to either sell off or jointly develop the property and realise around Rs.700 crore.

Realty brokers in Kolkata said since 2009 Dunlop has been trying to sell its properties across the country and finally things are materialising.

Dunlop recently evaluated its Kolkata properties. Senior land deal brokers, however, say the company is not happy with the valuation and, hence, are approaching the IPC for better deals.