Foreign Investments Trigger Kolkata Property Markets

By: George Gonigal

Good news for Kolkata property markets. The palace city of Kolkata would add a huge 72 acre modern township to its real estate at the South-West part of the city, within next 5-years. Interestingly, it is the UK-based real estate company REIT Asset Management Limited that has joined hands with the Kolkata-based Eden Group to develop this integrated township at Maheshtala.

According to sources, the joint venture would pour in about Rs 1,000 crore in the project. Meanwhile, the announcement for this project has generated ripples of excitement in the Kolkata real estate markets.

Properties in and around the project are taking cue, and there are all the chances of speculative investments in the zone. "The sudden spur in demand of real estate in Kolkata's Maheshtala municipal area has been resulting in escalated property values, and we cannot really say where the markets are heading for," said Rajesh Vishwakarma, a Kolkata-based property dealer.

The real estate professionals in Kolkata however say that the near term outlook on real estate investment in the area is positive, and would remain so until something goes in the wrong way.

An investor has to understand that the township would be developed in the period of 5-years, and that's why he is to keep his investment horizon in line with this time period. Appreciation in property values would entirely depend on how the project progresses and develops the basic infrastructure around itself.

Notably, the township would supply about 60-lakh square feet of residential property in Kolkata by year 2011-12.

What is most exciting in the entire story is investment from a foreign entity. The REIT Asset Management has expressed commitment to invest about $50 million in Indian real estate markets. The same has triggered the investment sentiments in the property markets, especially those at Kolkata.

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