Real Estate Investment :- Destination Kolkata

I left HP SAN Lab, Bangalore and relocated to Kolkata, my hometown after getting an offer from a startup working in the SAN domain.

Even while in Bangalore, I was hearing that with huge industrial investments pouring in from across the globe, Kolkata is fast becoming an attractive destination for commercial activity. A glimpse of it can be found here and here.


I started looking for real estate ( predominantly apartments) for investment and not for keeping those as assets for future revenue streams. Moreover I also wanted the investment to give a handsome return in 2-3 years time frame. Being a first time investor, I talked to a whole bunch of real estate consultants and friends . I did an extensive survey in the net and looked at the infrastructure projects and their deadlines ( both actual and relaxed ).

I realized that the prudency lies in going for a under-construction project (as full down-payment was not necessary) in an upcoming area (for higher returns).


Rajarhat was obviously the name which I heard again & again . When various projects in this satellite town were launched in 2005 , the rates were somewhere around 1600-1700/ sq ft level. In less than 2 years time the rates are hovering around 3100-3300 / sq feet.

Even now it is expected Rajarhat, with this high rate , would give a 50 % - 60 % return in a time span of 3 years . Obviously the rate of appreciation is getting flattened as the township is nearing completion .


I explored EM Byepass. With the city poised to grow from Barasat to Baruipur, this road is going to be the lifeline of the metropolis.
If one looks at the central and southern parts of EM Byepass, Parama Island ( Science City ) is going to be one of the most upmarket commercial zones with 3 five-star hotel projects on the anvil. But the only residential appartment complex,Silver Spring, being a 10 min journey from both Rajarhat & Park Street, is commanding rates of (4200-4500)+/sq feet.

Kasba Golpark ( Ruby Hospital) is turning out to be an excellent mixture of residential and commercial zone with Nonadanga being declared as an IT hub. The upcoming projects are here carrying a price tag of 3000+/sq feet.

If one looks further beyond, the next 2 junctions on EM Byepass are Baisnavghata Patuli and Kamalgazi. In Patuli, rates are hovering around Rs. 1800-Rs 2200 / sq feet and in Kamalgazi those are Rs. 1300-Rs1800 / sq feet depending on the facilities offered by the project as well as which stage of completion it is in. These 2 junctions really fascinated me.

Advantage Patuli / Kamalgazi:

1. Entry Barrier ( price) for investment is less.

2. The place is going to get a huge infrastructure facelift by next 2-3 years as Garia Metro is scheduled to open by 2009 latest . Moreover the current 4 - lane byepass beyond Ruby Hospital is going to be upgraded to a 8-lane expressway by 2010 .

3. Salt Lake Sector V as well as Rajarhat is not more than 30-45 min journey from these 2 places. So this pollution-free green zone is bound to be pretty popular as residential abode for IT professionals. This was pretty evident in the way IT professionals lapped up the Sherwood Project in Narendrapur (3-4 bus stops beyond Kamalgazi). The project which was launched at Rs 900/ sq feet is now selling at Rs. 1800/ Sq feet.

4. Nonadanga IT Park ( near Ruby Hospital) is a 10 min jouney.

5. The South 24 Pargana district head quarter is scheduled to get shifted from Alipur to Baruipur by 2008. Land aquisition is already over and construction work has also started I heard. With Salim group supposed to build a township of 3000 acres in Baruipur with huge IT SEZs and a health city on 800 acres coming up in Sonarpur- Baruipur , Patuli and particularly Kamalgazi is scheduled to be a gateway to these places.

I decided to invest in this stretch only. If Rs. 1000/ sq feet of profit can be acheived in a couple of years by investing in any of these 2 places and that too with such low entry barriers, I think that is a pretty nice option.

Some of the projects which I came across in this belt are:
http://www.nkrealtors.com/sonar_faq.html
http://www.remacindia.com/project.as...69#javascript()

Any criticism, ideas, suggestions, questions are most welcome.