New Town has emerged as one of the favourite realty destinations in Kolkata. Growing rental values, coupled with the quality infrastructure and affordability, have significantly contributed to the area’s attractiveness over the years. However, since New Town is divided into various sub-markets, it is crucial to identify the residential pockets that assure higher capital returns and are investment-worthy.

New Town is an ideal choice for those looking for affordable residential options in the City of Joy, Kolkata. Comprising the two erstwhile villages of Rajarhat and Bhangar, New Town spreads over 30 million sq km and is divided into four Action Areas, i.e. Action Area I, Action Area II, Action Area III and Action Area IV. While all the areas offer numerous residential and commercial real estate options along with seamless infrastructural facilities, Action Area I and III have been on the homebuyers’ radar owing to a multiplicity of factors.

Action Area I

Located approximately 3 km away from Salt Lake Sector 5, Action Area I  enjoys maximum demand from white-collar professionals. Since limited land supply in the area has deterred new residential developments, resale properties remain the popular choice of the homebuyer community.

According to Rahul Som, Property Consultant, Home and Solutions, “As the property prices in premium locations of Bhawanipur and Alipore are soaring high, majority of the investors prefer to invest in Action Area I. The average property values in Action Area I hover between Rs 4,000 per sq ft and Rs 5,000 per sq ft. The proximity to the technology hub of Salt Lake has added to the investment potential of the micro-market. The average capital returns in Action Area I have grown by 3-5 percent YoY and the dynamics may improve further with the new infrastructure and commercial developments on the cards. For instance, the proposed Kolkata Metro Line 2 may prove to be a game-changer for realty market in Action Area I as it would run from Technopolis to VIP Road via Kala Kshetra. Besides, ITC has also announced its foray in Action Area I. Infosys has also begun the construction of its first office space in the State spreading over 50 acres of land. The commercial growth would strengthen the realty demand and thereby the capital values in Action Area I.”

Areas

Average capital prices (per sq ft)

Action Area I

Rs 4,000-5,000

Bhawanipur

Rs 8,200-10,900

Alipur

Rs 12,200-14,600

Salt lake

Rs 6,800-7,500

 Source: 99acres.com

Action Area II

It is the second IT hub of Kolkata, after Salt Lake and comprises multiple business parks such as DLF Park, Gitanjali Park, Unitech and TCS.  Eco Park, the famous amusement hub and wax museum are a few other attractions in Action Area II. On the residential front, it offers a heterogeneous mix of mid-income and premium housing projects. Limited availability of undeveloped land parcels has led to limited new residential launches in the area in the last few years. Older residential projects, too, have limited units on sale, putting upward pressure on property prices. As a result, Action Area II commands a premium over Action Areas I and III. Currently, the average capital prices in the area range between Rs 4,900 per sq ft and Rs 6,000 per sq ft.

Action Area III

Home to numerous low-cost residential choices, Action Area III, has been a preferred choice for first-time homebuyers. The well-planned micro-market offers a mix of under-construction and ready-to-move residential units. Besides, residential land, villas and independent floors are also a few other housing opportunities in the area. Some of the reputed builders that have marked their presence here include DLF, Unitech, and Shapoorji Pallonji. The average capital values in Action Area III vary from Rs 4,200 per sq ft to Rs 4,900 per sq ft.

The area also boasts of some of the top educational institutes such as St. Xavier’s College and Amity University. Besides, a new IIT campus is also under-construction in Action Area III. The area also enjoys proximity to some of the reputed IT firms such as IBM, Wipro and Cognizant.

One of the striking facts about Action Area III is its smooth connectivity to various noted areas of the city via SP Road. These include areas such as Howrah, Tollygunge and Dakkhineshwar. To further enhance its connectivity, the Housing Infrastructure Development Corporation (HIDCO) has proposed to develop either a ropeway or a Light Rail Transit (LRT) from Action Area III to Biswa Bangla Gate on the Narkeldanga intersection of the main arterial road in Action Area I. Currently, the four Action Areas are connected by four arterial roads. In addition to regular electric bus service, the Metro line connecting Action Areas I and II is also under-construction. Action Area III is still not connected well via any public transport network, thus making the LRT a sought-after development.

HIDCO is the planning and executing authority for all the development projects in various sub-markets of New Town; however, Action Area IV is yet to see the realty growth. Currently, the focus of the corporation is on the transformation of other Action Areas owing to their higher investment potential.

With the expanding metro network and other infrastructure developments, the future of New Town looks extremely promising. There are plans for extending the circular railway system as well. All these facilities make New Town an eminently livable place. However, it is crucial to evaluate the Returns on Investment (ROI) in advance to avoid regretting later.