Tag Archives: Kolkata real estate

West Bengal offers big sops to real estate projects

Posted on by Track2Realty

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, Chennai real estateTrack2Realty-Agencies: In a boost to realty-related investment in the state, West Bengal Government has decided to grant an exemption under section 14Y of the West Bengal Land Reforms Act for township projects enabling them to acquire land more than the ceiling limit of 24 acres.

West Bengal Land Reforms (Amendment) Bill 2014, which has been cleared by the state assembly, has offered this relaxation to infrastructure projects like transportation or terminal, township, logistics hub.

The government had earlier sought suggestions from pertinent ministries and industry bodies on amending Section 14Y of the West Bengal Land and Land Reforms Act, 1955, which grants exemption from the land ceiling to certain categories of industry.

Before this amendment the exemption iswas confined to “tea gardens, mills, factories, workshops, livestock breeding firms” with no room for modern ventures like information technology.

Besides, the amendment would allow the developers to take five years’ time from acquisition of land to complete the project, compared to three years earlier.

“This is a pro-industry move. With this amendment, industrial projects would get a major boost,” West Bengal education minister Partha Chatterjee said.

The Opposition however slammed the move. “As the government has failed to bring industry in the state, it has now started promoting only real estate business in the state,” CPI(M) leader Surjya Kant Mishra said.

Kolkata’s office market witnesses low demand in Q1 2014; transactions likely to improve in the medium term

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By: Anshuman Magazine, CMD, CBRE South Asia

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, Chennai real estateTrack2Realty: Demand for investment-grade office space across leading cities in India slowed down in the first quarter of 2014, with around 6.3 million sq. ft. of Grade A office space getting absorbed The market saw slow transaction activity and a low level of new completions in the first quarter; and leading cities continued to experience caution from corporate occupiers in the first three months of the year.

While the Kolkata commercial real estate market attracted reduced demand for office space during the first quarter, enquiry levels from prospective corporate occupiers indicate that office transaction activity is likely to pick up in the coming months.

On the supply front, the peripheral locations of the city are likely to witness significant supply addition by the end of 2014; and office space rental values are expected to remain stagnant across most micro-markets of Kolkata in the coming months.

During the first quarter of 2014, Kolkata’s Central Business District (CBD) of Chowringhee, B.B.D Bagh, Park Street and Camac Sreet witnessed a low level of commercial leasing activity in the first quarter. On the supply front, around 30,000 sq. ft. of office space was added to the existing stock; resulting into a marginal increase in vacancy levels. Rental values remained largely stable in this micro-market.

The secondary micro-markets of EM Bypass, Kasba–Gariahat, Topsia and Sarat Bose Road saw sluggish transaction activity during the quarter. There was no addition to the office stock in this micro-market; and vacancy levels remained largely stable over the previous quarter.

The peripheral micro-markets of Salt Lake and Rajarhat observed a decrease in demand for office space, with office space absorption recorded at 37,000 sq. ft. in the first quarter of 2014, as compared to 55,000 sq. ft. recorded in the previous quarter. There were no significant project completions in this micro-market during Q1 2014. Vacancy levels remained high, and were estimated in the range of 18–20%.

Bengal passes Bill to prevent use of excess land for real estate

Posted on by Track2Realty

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, Chennai real estateTrack2Realty-Agencies: The West Bengal Assembly on Friday, Nov 30, passed the Land Reforms (Amendment) Bill, 2013 which would prevent use of land, earmarked for township development, in excess of the prescribed ceiling for real estate purpose.

The Bill was passed in the absence of opposition Left Front and Congress.

Moving the bill in the House, Minister of State for Land and Land Reforms Department Swapan Debnath said that the amendment of Section 14Z of the Act would exclude the provision for retention of land in excess of the prescribed ceiling for township development from the purview of the section.

The minister said during the erstwhile Left Front regime, excess land holding was used for building real estate.

Now any surplus land could be used for poultry or dairy farming for the benefit of rural people and boost rural economy, Debnath said.

Section 50 of the Act has also been amended for introducing digital signature in accordance with the provision for Section 3 of the Information Technology Act, 2000 to ensure a more scientific authentication of all ‘Records of Rights’, the Minister said.

Extending full support to the bill, the lone SUCI member in the House, Tarun Kanti Naskar, lauded the state government for its initiative to prevent misuse of surplus land.

Polls prop up realty market in Kolkata, Chennai

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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, Chennai real estateEven as global economic slowdown and uncertainty in financial markets have battered the real estate industry countrywide, forcing a price correction in several markets, properties in Kolkata and Chennai bucked the trend with steady demand in affordable and mid-segment housing.

According to a study by global realty player Knight Frank, the residential sector in Kolkata is least affected by the economic slowdown among tier-I cities. Only Chennai fares close to Kolkata. In the other metros, the market has either shrunk or remained stagnant, leading to a supply glut.

“The reason why Kolkata and Chennai have not been hit by the downturn is because both markets are driven by end users and not speculative investors. Builders, too, have been pragmatic in these two markets and not gone the whole hog to create a situation where supply is excess. Moreover, prices in these markets continue to remain reasonable,” said Pradeep Sureka, President of the Bengal chapter of Confederation of Real Estate Developers’ Association of India (CREDAI).

It is not just the prudence of builders that helped the two markets. Elections in West Bengal and Tamil Nadu earlier this year played a crucial role in constricting supply. The political flux that preceded and followed the election grounded construction activity for five-six months. The resultant delay in deliveries meant the supply crunch persisted, unlike other cities where a spate of new projects in a depressed market situation led to oversupply.

“Building material supplies had stopped for four-five months as a political realignment happened after the elections. Like Kolkata, the supply line for stone chips, sand and bricks is controlled by political interests in Chennai. While AIADMK men took charge after the change of guard in Chennai, it was Trinamool Congress taking over from CPM in Kolkata,” said CREDAI national secretary T Chitty Babu.

The elections also meant that sanctions for large projects were suspended for months. It is only now that fresh sanctions are being handed out. “With Urban Land Ceiling Act still in place and the new government in Bengal announcing its intent to steer clear of land procurement, large projects will be difficult to come by. The supply crunch situation will only accentuate,” Sureka added.