Known as the cultural capital of India, Calcutta (now Kolkata) is the capital city of the state of West Bengal. For years it has been economical and cultural; center point of eastern India. The people of the city have been strongly connected with each other and have lived in the same localities for generations. The advent of liberalization has had its effects on Kolkatta too, with the independent units giving way to apartments which were never a part of the Kolkata lifestyle. The migration of people to this city along with rise in job opportunities with the IT sector reaching its shores has led to a shortage of land.
This shortage has resulted in the city growing vertically. The apartment culture has emerged in Kolkatta more recently and has gained momentum especially since the last 20 years. With the migration of techies and the change of the social fabric of the city, more and more youngsters have started preferring nuclear families. This has resulted in the high rise apartments invading the Kolkatta skyline. With the IT sector booming, the younger generation has got more purchasing power. The desire to own a house or live separately has taken root and one can see many youngsters looking for flats on rent in Kolkata these days as compared to earlier when they use to prefer joint family setup.
Seeing this huge demand for residential property, local real estate players forayed into the apartment culture. The initial lot was lapped up in the launching stages only. This gave confidence to the local as well as national level builders who were testing the waters till now. Big players like DLF and Unitech jumped into the market and came up with bigger projects. This has led to many integrated townships around Kolkata, consisting of Apartment high rises, education centers, malls and market placed and hospitals.
The Kolkata real estate market has seen a lot of rise and is showing a lot of potential to be a hot shot in the near future too. The dream of owning a flat for people has appreciated by nearly 30% in some places. The main places to look out for flats in Kolkatta are the Sector V in Salt Lake City, due to it being the IT hub, New Town, Garia and EM by pass. Rajarhat is also a newly developed area of attraction and is expected to grow big in the future.
Good infrastructure, reach of the metro and availability of jobs are some of the main reasons why the Kolkata real estate market is still growing steadily at around 10-15% annually. This is much more than any other Tier 1 city in the country. The main activity is in the mid size apartments as the number of end users in Kolkata are pretty high. An exorbitant 65% of the flat buyers are end users, which makes the market more stable.
The glamour of the apartment culture and the facilities provided by the builders has attracted many people towards the flat culture. This has seen a steady rise in demand for flats for rent in Kolkata. Beleghata and Rashbehari areas have a lot of upcoming and a number of finished projects available.
A new system of Public-private joint partnership has also been tried in Kolkata and has been quiet successful. Here the builder is given the land at subsidized rates by the government and in return the builder sells LIG flats at cost price, the MIG flats for a little profit and the HIG flats at his own set price. This system enables the buyers to get flats at reasonable prices.