Retail and Real Estate Projects on hold in Kolkata

April 20, 2009	(1 votes, average: 5 out of 5)  Loading ...
Print This Story   Email This Story Subscribe Newsletter

Around 100 small and large retail and real estate projects in Kolkata are being delayed or deferred due to the financial credit crunch. According to analysts and industry insiders, increased retail development in Kolkata and in its suburbs had nearly doubled real estate prices over the last few years. However, although 40 to 50 projects are lined up in the city currently, around 100 projects are delayed or deferred due to credit crunch as well as because of uncertainty over projects’ viability and sustenance.

As per report, projects like City Centre II, Lake Mall, Terminus Mall, Axis Mall and Avani Riverside mall in Howrah, are already running behind schedule. According to Mr Mayank Saksena head of transactions in Kolkata, Jones Lang LaSalle Meghraj, around 40 to 50 projects are lined up for Kolkata while around 100 have been delayed. On an average, each of these projects is of approximately 200,000 square feet priced at an average of INR 3,000 per sq ft. Mr Saksena added that “The best performing local developer is currently Bengal Ambuja. Local developers deliver very satisfactory products at lower prices. For instance, Bengal Unitech is charging INR 3,200 per sq ft in Rajarhat, while other local developers charge INR 2,500 per sq ft for comparable projects.”

Real estate prices in Kolkata are also down 15% and a further correction of 10% is expected, on the back of slowed retail activities and consumers going into savings mode. Due to increased retail development, real estate prices had increased till the better part of 2008 and this includes the suburbs. Right now, the situation is doubtlessly in stagnation, but the downward movement is minimal.

News Published Under:   Kolkata |

Comments