‘Look East’ has been the resonating theme with the corporate world seeking a conducive environment to conduct business. Commercial projects in Kolkata have been launched in the eastern fringes where there has been robust growth of infrastructure, making it the preferred zone to work, live and enjoy life.
Esplanade and BBD Bag constituted the Central Business District (CBD) area in Kolkata that has now lost its appeal. Bustling with crowds and throbbing with activity all the time, these locations cannot meet the present-day needs as the space available for expansion or modern layout is limited. Parking hassles keep shoppers away from this area that wears a heritage look while the youth seek clean, wide-open spaces for smooth navigation and a clutter-free shopping experience.
The “shifting” of the CBD Area to Rajarhat and New Town has gained momentum with the upcoming Metro linkage. Commercial projects in Kolkata are launched in this nature-friendly micro-location that offers ease of commuting and connectivity support. Many IT companies have already set up their offices here. The mixed presence of residential complexes and office spaces provides a ready market for commercial activities.
Commercial projects in Kolkata
The existing problems in the Central Business District area have contributed to the growth of the commercial real estate segment in New Town and Rajarhat. Peripheral business districts have emerged as the preferred location to present a viable alternative for corporate houses, offices and retail businesses to explore. Commercial projects in Kolkata are launched in this micro-location because of the infrastructure. The ‘Smart City’ tag has created a buzz among investors and end-users. The area provides easy availability of big vacant spaces at affordable prices, resulting in higher demand for commercial properties in Kolkata.
Buyers of commercial properties in Kolkata prefer looking at New Town because of the unique set of advantages it offers to business owners. The current trend reflects a clear preference for malls and large format retail outlets. These cannot be developed in areas where space is restricted. Only a newly developed area can offer this opportunity. As commercial properties in Kolkata have undergone a sharp revision in prices, not all business people can afford to invest in crores. The new location offers premium commercial projects in Kolkata with reasonably priced commercial properties, with the potential of good capital appreciation in the long term.
The New Town Edge
New Town has developed into an integrated city, well-designed, well-equipped, with modern infrastructure and amenities. Although it is yet to become fully recognized as the Central Business District Area of Kolkata, it is fast turning into a commercial hub. It is poised to become the commercial hub of the entire eastern region of India. Massive infrastructural development is underway. The amenities in the area have improved a lot.
Multiple modes of communication – railway and roads – have made it easy to commute from any part of the city and suburbs. The connectivity with International Airport and Sector V makes it easy for business people and delegates to visit the business hub. The roads in New Town and Rajarhat area are wide and clean. Unlike the choked traffic in central Kolkata, the easy movement of traffic here enhances its appeal. With shopping malls like Axis, DLF Galleria and City Centre 2 getting a good response from shoppers, the commercial real estate in this locality is likely to witness a spurt in demand. The new launches of commercial projects in Kolkata indicate a paradigm shift. Since good schools and world-class universities are located here, there is a steady movement of youth who play a stellar role in ramping up the business prospects.
Affordable commercial spaces
Instead of renting commercial properties in Kolkata, businessmen find it profitable to invest in commercial properties in Kolkata. This change in mindset is the outcome of the launch of new commercial projects in Kolkata that are offering the option of quality asset creation at affordable rates. New Town is rapidly developing as a commercial corridor where the ongoing commercial value of office space ranges between Rs.4,500-5,500 per sq. ft. whereas the value in the CBD area hovers between Rs.15,000-20,000 per sq. ft. It makes sense for companies and businesses with adequate cash flow to service structured debt instead of squandering money on steep rentals. It leads to substantial savings and the creation of an asset that helps the business stay afloat during hard times.
Commercial projects in Kolkata – mainly in the eastern periphery – have been designed to meet international standards of architectural excellence. There is ample scope for natural light and fresh air to circulate inside and reduce the electricity footprint. From elevators, parking areas, lounge, corridors, to central air-conditioning, everything inside is contemporary and vibrant. The green buildings require lesser energy usage and are more environment-friendly. This key attraction is not found elsewhere in the city.
The big-ticket realty projects have shaped an IT hub and commercial hotspot in the smart city. It boasts of e-health clinics, intelligent power-saving LED streetlights, multi-modal transport hub, cycling tracks, amusement centers, Wi-fi zone, solar panels and water treatment plants. With more families shifting here, professionals getting employed here, people coming here from other parts of the city to shop and relax, the area has acquired the reputation of being a beautiful green corridor that offers affordable commercial properties in Kolkata.
Lower land acquisition cost in New Town vis-à-vis other localities, lower asset prices and availability of scalable infrastructure are the key drivers of commercial real estate growth. The retail market has high potential as leading luxury brands as well as varied dining cultures have become an integral part of retail zones. It has led to a rise in footfalls and aspirational purchases, with cafes and lounges augmenting their popularity. Since there is a lack of large open spaces in central Kolkata, the New Town zone offers the scope to open large format retail outlets. The CBD area undergoes a gradual “shift” from its existing base – to explore new high-street destinations where connectivity and infrastructure provide satisfaction to shoppers, commuters and business owners.
Small spaces in demand
Global companies pushed the demand for commercial properties in Kolkata. During the pandemic, large commercial properties did not clock brisk demand. But small commercial units have witnessed a spike in demand because of affordability. Earlier, the demand for commercial space was limited to the Central Business District of Kolkata. Peripheral areas like New Town and Rajarhat have now become the developing zones for new commercial hubs. Lower rental rates, good connectivity and commuting options, zero pollution and lack of congestion are the prime reasons alluring businesses to relocate here. The development of office spaces here has led to residential realty growth, offering a captive market of consumers who prefer these areas for systematic, focused and planned commercial real estate development.
If you are searching for good commercial properties in Kolkata for investment purpose or end-use, looking for the best locality with attractive growth potential, consider the CBD area shifting to New Town and Rajarhat as the ideal location offering premium commercial projects to choose from.