#99acresInsite: Top 5 investment hotspots in Kolkata

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Kolkata residential

While the overall Kolkata residential market remained stagnant with no capital growth during Apr-Jun 2016, localities such as Dum Dum, Sakher Bazar, Kaikhali, VIP Road and Naktala emerged as the frontrunners in terms of capital appreciation. 99acres delves deeper into the reasons behind the growth of these regions.

According to the latest 99acres Insite report, the average capital values in Kolkata’s residential market recorded no growth during Apr-Jun 2016 quarter as compared to the previous quarter.

A Knight Frank report revealed that the city witnessed a 10 per cent drop in sales during H1 2016. Sayantan Dutta, a city-based real estate consultant, avers, “Some of the reasons for the muted growth in the city are the overall sluggish Indian real estate market, high construction costs, liquidity constraints and delay in obtaining project approvals which continued to trouble the developer community.”

However, despite the stagnation in the market which is in line with the national market sentiment, some micro-markets managed to outshine others and record a healthy growth on the back of improved road and metro connectivity and presence of IT/ITeS companies.

Let’s look at the top investment zones and their growth drivers:

Locality

Jan-Mar 2016 (per sq ft)

Apr-Jun 2016 (per sq ft)

Change (in %)

Dum Dum

Rs 3,500

Rs 3,850

10

Sakher Bazar

Rs 3,300

Rs 3,700

9

Kaikhali

Rs 3,800

Rs 4,083

7

VIP Road

Rs 4,100

Rs 4,400

7

Naktala

Rs 4,000

Rs 4,400

7

Source: 99acres Insite

Dum Dum: One of the prominent localities in North Kolkata, Dum Dum is well known as a  commercial hub hosting Gun and Shell Cossipore (GSF) and Ordnance Factory Dum Dum (OFDC). According to 99acres Insite, the locality recorded a 10 per cent QoQ capital growth. Proximity to international Airport, National Highway (NH4), availability of affordable properties and excellent social infrastructure are some of the major growth drivers. In terms of road connectivity, Dum Dum is well-connected with other parts of the city such as Babughat, Birati-Nimta Road, Jessore, Salt Lake Sector V and Cantonment Road via Jessore Road and Dum Dum Road. “Further, the upcoming Dakshineswar-Barasat Metro line will not only boost the connectivity but also drive realty demand in the region”, Dutta adds.

Sakher Bazar: One of the oldest and upmarket neighbourhoods of South Kolkata, Sakher Bazar recorded a nine per cent QoQ capital growth, as per 99acres insite report.  The growth can be attributed to the strategic location on Biren Roy Road, Diamond Harbour Road, and Thakurpukur-Bibirhat-Bakhrahat-Raipur Rd. This locality enjoys seamless road connectivity with buses plying to Howrah, BBD Bagh, Park Street, Sealdah, Kidderpore, Bidhannagar Sector V. “Further, the upcoming Joka-BBD Bagh Metro station construction work on D H Road will fuel realty demand in the region”, Dutta adds. In addition, the presence of basic social establishments has transformed this region into one of the top residential areas in Kolkata.

Kaikhali: One of the fastest growing prime residential localities in North Kolkata, Kaikhali is known to be a peaceful locality away from the hustle-bustle of the city. It is very well-connected to its various city centres such as IT hub, major schools, shopping malls, the ECO Park and Airport. In addition, the metro project connecting New Garia and the airport and extension of Dumdum to Airport is happening at a fast pace. The completion of the metro will make this locality one of the well-connected localities in the city. The region recorded a seven per cent QoQ growth during Apr-Jun 2016 quarter, as per 99acres Insite.

VIP Road: Located in North East Kolkata, Kazi Nazrul Islam Sarani or popularly known as VIP Road was built in 1962 to offer fast connectivity between the Airport and the city. However, it has now turned into an upbeat residential destination among investors and end-users, recording a seven per cent QoQ growth during Apr-Jun 2016, as per 99acres Insite. “The growth of the region can be attributed to the spurt in population in Ultadanga, Lake Town, Bangur Avenue, Baguiati, Keshtopur and Tegharia as they are located along the road which is a major thoroughfare in the city initiating from Ultadanga till Jessore Road near Dum Dum,” shares Dutta. In addition, flyovers between Dum Dum Park-Teghoria stretch and VIP Road-EM Bypass Road has not only reduced traffic congestion but also contributed to realty growth in the region.

Naktala: Once considered to be a sleepy suburb, Naktala has now become one of the upmarket suburban localities in South Kolkata. As per 99acres Insite, the locality recorded a seven per cent growth in capital values. Some of the reasons attributed to the growth of the locality are strategic location between two of the main arteries namely, NSC Bose Road and Raja S C Mullick Road. In addition, proximity to Tollygunge and Garia are other reasons for the consistent growth. Dutta shares that while the locality has good road connectivity in terms of buses, the major growth driver which has fuelled the realty demand in the region is the metro connectivity with the presence of Gitanjali Metro station.


Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. 99acres does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.


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  • sandip sarkar October 26, 20168:03 am

    On the best investment properties in Kolkata is the fresco plan; fresco fountain city developed by Vriddhi Landmart Pvt Ltd.

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