Track2Realty Exclusive: Analysis of East Zone
The transaction activity registered in Kolkata in 2012 was down by 42% during Q1-Q3 2012 compared to the year ago period. The subdued demand is the result of the uncertainty prevailing in both the global as well as domestic markets. Most of the corporates have trimmed their expansion plans and instead looking at consolidation to optimize their real estate usage and bring down the costs.
With respect to the primary sectors driving the office space demand, IT/ITES continued to be the primary driver followed by professional services and manufacturing.
Due to the moderation in demand and tough economic environment resulting in liquidity crunch at the developers end, the new supply dropped sharply in Kolkata. It dropped by 80% to approximately 0.5 million sq ft between January and September 2012 as compared to 2.3 million sq ft recorded in 2011 during the same period.
Rental values have remained stabled across most micro markets in Kolkata with the exception of Kolkata CBD where the rents increased by as much as 18% due to infusion of new supply in the area and sustained demand. Due to the better quality of construction, the new buildings in Kolkata CBD are commanding higher rentals as compared to the old ones.
Best performing micro markets:
– Kolkata: PBD locations continue to attract majority of office space demand. Out of Rajarhat and Saltlake, Rajarhat continues to be the preferred micro market due presence of IT/ITES SEZs offering high quality infrastructure at competitive rentals.
Kolkata:
|
Company Name |
Building Name |
Location |
Micro market |
Area leased (sq.ft.) |
| IBM |
Unitech SEZ |
Rajarhat |
PBD |
450,000 |
| Larsen & Turbo |
Godrej Waterside Tower 2 |
Salt Late |
PBD |
200,000 |
| Ericsson |
DLF SEZ |
Rajarhat |
PBD |
110,000 |
Source: Market Intelligence, DTZ Research
Development pipeline 2013, major projects:
|
Name of the Project |
Developer |
Location |
Micro market |
Built up Area (In sq ft) |
| Ecospace D | Ambuja Realty | Rajarhat | PBD | 235000 |
| Eco Space | Ambuja Realty | Salt Lake Sector V | PBD | 200000 |
| Diamond Heritage | Diamond Group | 16, Strand Road, Kolkata | CBD | 250000 |
| Martin Burn Business Park | Martin Burn Constructions Ltd | Bp-3, Sector-V,Salt Lake City | PBD | 450000 |
Source: Market Intelligence, DTZ Research
……to be continued
