GARIA & NEW GARIA Emerging Real Estate Sector at City Edge After Extension of Metro Corridor

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School of Planning &

Architecture

DIYA Banerjee

GARIA & NEW GARIA : Emerging Real Estate Sector At

City Edge After Extension Of Metro Corridor


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GARIA & NEW GARIA :

EMERGING REAL ESTATE SECTOR AT CITY EDGE AFTER EXTENSION OF METRO

CORRIDOR

Kolkata, formerly known as Calcutta, is the capital of the Indian state of West Bengal. Kolkata was the

commercial capital of East India, located on the east bank of the Hooghly River. The city ofKolkata has

4.5 million residents, and the metropolitan area, including suburbs, has a population of approximately

15.7 million, making it the third most populous metropolitan area in India and the 13th most populous

urban area in the world. The city is also classified as the eighth largest urban agglomeration in the world.

Kolkata city, under the jurisdiction of the Kolkata Municipal Corporation (KMC), has an area of 185 km2

(71 sq mi). The Kolkata conurbation (Kolkata Metropolitan Area), however, is spread over 1,750 km2

(676 sq mi), and comprises 157 postal areas, as of 2006. The urban agglomeration comprises 72 cities

and 527 towns and villages. The suburban areas ofKolkata metropolitan district incorporates parts of

the districts North2

4 Parganas, South2

4 Parganas, Howrah, Hooghly and Nadia. The east-to-westdimension of the city is narrow, stretching from the Hooghly River in the west to roughly the Eastern

Metropolitan Bypass in the east, a span of barely 5 km (3.1 mi)6 km (3.7 mi), restricted by the East

calcuttal Wetlands. The north-south expansion is roughly divided into North, Central and South Kolkata.

The city is, for now majorly growing into south & south east direction.

Public transport is provided by the Kolkata suburban railway, the Kolkata Metro, trams and buses. The

suburban railway network is extensive and extends into the distant suburbs .The Kolkata Metro, run by

the Indian Railways, is the oldest underground system in India since 1984. It runs parallel to the River

Hooghly and spans the north-south length of the city covering a distance of22.3 km.

It is important to note that the rapid growth of large cities during the last decades including that in

Kolkata has resulted in problems of crowding, congestion, squalor and deprivation. This has led some to

believe that the solution lies in preventing the growth. But while it is possible to visualize a limit to the

level of urbanization, a limit to the size of a city is yet a totally unresolved issue. Large metropolitan

cities all over the world are still growing. Quite a few of them have already crossed 20 million marks.

Tokyo Metropolitan Region is over 30 million and is still growing. With a view of managing this growth in

KMA, the plan for metropolitan development has been prepared for the projected population of more

than 21 million in 2025.

The State Government realizes the need and importance of decentralized planning and development for

not only evolving a spatially balanced urban growth but also achieving more efficient use of available

resources. The acute primacy ofKolkata and imbalanced distribution of urban population across the

state not only affected the economy and urban structures of West Bengal but has also proved to bedetrimental to healthy and orderly development of the metropolis. In the late seventies the

Government of West Bengal moved towards a policy of decentralised urban development.


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Development of surrounding areas started with this goal of decentralization. If we see the current land

use pattern ofKolkata, it shows

Table 2.18: Land Use Pattern- Kolkata Metropolitan Area

No. Land Use Area in Sq. Km. Per cent

1. Residential 421.4 31.21

2. Agricultural & Vacant Land 611.8 45.32

3. Commercial & Industrial 89.5 6.63

4. Parks & Open Space 12.1 0.89

5. Educational Activities 33.6 2.49

6. Transport Activities 73.6 5.45

7. Others including Recreational 108.0 8.01

Total 1350.0 100.00

Source: 1. Kolkata Metropolitan Development Authority, Vision 2025.

2. A Perspective Plan for Kolkata 201, Supp.Vol-I, State Planning Board, Govt. of West Bengal, Nov. 1990.

This agricultural land majorly lies towards

the north & south eastern edge of the city.

The city is steadily engulfing this areas for

its development. If we follow the

infrastructural trend, the most important

infrastructural project that is coming up isthe metro corridors. With only one of the

five of the proposed corridors built, the

areas connected by these arteries offers

an immense scope of development,

especially in the real estate sectors.

.

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

1901 11 21 31 41 51 61 71 81 91 2001

Population ofKolkata UA investment Kolkata Metro Corridors

GARIA


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Improved connectivity and better infrastructure that includes civic amenities have spurred development

along the rail route.

When Metro Railway first started its operation along the North-South route in Kolkata in the late 70s,

those living in the city proper were unhappy. A part of their palatial buildings that housed cars and

landaus called gari Baranda in Bengali were pulled down to make way for the stations.

In 2009 when the city witnessed the extension of the Metro Railway towards the southern fringes, the

8.5-km extension from Tollygunge to New Garia (two southern fringes of the city) came as a blessing.

As the city spreaded its limits, land prices in these areas till then not a favourite destination of the

developers were being appreciated. Mr Pradeep Surekha, President, Confederation of Real Estate

Developers Association of India (Credai) in West Bengal says: The impact of Metro Railways on price of

land is bound to happen. Infrastructure developments generally push up property price and demand for

property in a region.i

Over a 5-6 year period, prices for residential housing shot up from Rs 1,500 1,800 per sq. ft. to nearly

Rs 2,500 3,000. Industry sources maintain that with improved connectivity and better infrastructure that includes civic amenities the market value of the area went up. Gone were the single or two-

storeyed houses with open spaces. And what have taken their place are multi-storeyed buildings and

condominiums. The DINK- generation (double income no kids) moved in, as did people who found

proper Kolkata a costly proposition. And with easy EMIs and the culture of nuclear families setting in,

property costs skyrocketed.

And a mass rapid transit system (MRTS) only came as a blessing. Mr Soumendu Naha, proprietor of

Krishna Developers, told Business Line: Land prices around the New Garia region went up by over 65

per cent once THE Metro operations began. And prices are going up at Rs 300 every six months.

Currently property rates in southern fringes of the city (that are connected by Metro) vary between Rs2,500 and Rs 3,000 a sq. ft. for residential apartments. Posh apartments sell at over Rs 3,200 per sq. ft.

a rate at par with Kolkata's planned and spacious second satellite township of New Town (Rajarhat).

According to industry sources, the Garia area saw a maximum price appreciation during the first quarter

of2011 (January to March). Property prices went up by nearly 15 per cent over the October-December

quarter last year. This is despite the fact that a chunk of promoters operating there were new entrants.

The absence of big brands and large schemes, industry sources say, points to a phenomenon of local

players making the most of the opportunities. Smaller holdings and absence of freehold land in an

otherwise congested area have also helped local developers. A bigger promoter will look for open

spaces and value additions. This requires larger plots. But in these areas, space is a major issue, an

official of a city-based property management firm said.

Interestingly, Ganguly Group's 4 Sight (Balia Model Town), Ambuja's Upohar and Eden Group's

Lavender remain the major projects in and around the Garia/New Garia area.

This area has a very high locational value. It is surrounded by metro corridor, suburban railway,

upcoming BRTS route, E.M.Bypass (which acts as the ring road to Kolkata) & major arterial roads. The

area is well connected with the upcoming IT parks & SEZs settled on the eastern edge of the city.

Making this area a lucrative choice for the young IT professionals.


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Figure 1 : Satellite image of Garia showing the development (2005)

Figure 2 : Satellite image of Garia showing the development (2011)

EXISTING METRO LINE

N.S.C. BOSE RD.E.M. BYPASS

EXISTING SUBURBAN RAIL

EXISTING SUBURBAN RAIL

N.S.C. BOSE RD.

EXISTING METRO LINEN.S.C. BOSE RD. E.M. BYPASS


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SHIFT IN DEMAND

The type of apartments demanded too has evolved along with the rise in demand. While earlier, small

single-room condominiums and apartments were popular, recent trends suggest a shift towards three

bedroom (3BHK) and two BHK apartments with mandated car parking space. Says Mr Pintu Debnath,

proprietor, Shersta Nirman: Earlier people would demand small apartments of 800 sq ft or one BHK

apartments. But now the average size of the apartment is around 1,000-1,100 sq feet. People are ready

to pay a premium for them.

Similarly, from budget homes to HIG apartments, demand for quality living has forced a makeover in

apartments coming up in the region. There has been an appreciation of price in the region. And it has

gone up over the years. From LIG to MIG and then HIG there has been a steady shift in the type of

apartments, Mr Mayank Saxena, Managing Director- Kolkata, at real estate consultancy firm Jones Lang

LaSalle India, said. ii

So the opportunity of this area is way beyond what is explored till now. A well speculated real estate

venture can actually contribute to the face lifting of the whole area. Small uncontrolled development

will exploit the important resources like land & private capitals and will also contribute to the urban

sprawl, where as a planned development following urban design principles will help in the sustainable

development of the area.

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The Hindu Business Line, 06 June, 2011

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GARIA & NEW GARIA Emerging Real Estate Sector at City Edge After Extension of Metro Corridor