Year End Market Report 2010 44

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<ul><li><p>8/3/2019 Year End Market Report 2010 44</p><p> 1/16</p><p>WAREHOUSELANDRESIDENTIALRETAILOFFICE</p><p>Values trends &amp; opportunitiesin the Kolkata real estate market</p></li><li><p>8/3/2019 Year End Market Report 2010 44</p><p> 2/16</p></li><li><p>8/3/2019 Year End Market Report 2010 44</p><p> 3/163</p><p>2010 Year End Market Review</p><p>Office ............................... 4</p><p>Retail ............................... 6</p><p>Residential ............................... 9</p><p>Land ............................... 13</p><p>Warehouse ............................... 14</p><p>CONTENTS</p><p>About Kolkata Market Report</p><p>The 2010 Kolkata Market Report is a unique tool that reviewsand summerises the real estate activities of the past year on</p><p>major locations across the Kolkata market. As a reference</p><p>tool, it reviews values, economies, social factors and other</p><p>conditions that impact a market.</p><p>Each analysis was completed by the NK Realtors professionals</p><p>who are expert at reviewing the local market, identifying trends</p><p>and reporting market activity.</p></li><li><p>8/3/2019 Year End Market Report 2010 44</p><p> 4/16</p><p>CORPORATE SERVICES</p><p>Triggered by the positive economic</p><p>sentiment and encouraged by</p><p>several significant transactions</p><p>Kolkata office market witnessed an</p><p>increase in activity throughout 2010.</p><p>With a huge talent pool and high quality</p><p>infrastructure, Kolkata has become one of</p><p>the major private investment destinations</p><p>in the country. The State had attracted</p><p>over Rs. 8,400 crore investments in</p><p>various sectors such as Iron and Steel,</p><p>Petrochemicals, Information Technology</p><p>and Food Processing etc. in 2009.</p><p>Kolkata's IT &amp; ITeS sector is one of the</p><p>important driving forces of the state's</p><p>economy which employs some 90,000</p><p>people. The sector registered 8 percent</p><p>growth during the year 2009-2010. IT &amp;</p><p>ITeS offices located in the sub urban</p><p>areas of Sector-V, New Town and Bantala</p><p>are currently driving the majority of office</p><p>market demand in Kolkata. The demand</p><p>in the IT &amp; IteS sector has got a major</p><p>boost in November, this year, when</p><p>INFOSYS Indias leading IT companyacquired 50 acres land from the state</p><p>government in Rajarhat to build their</p><p>campus.</p><p>Kolkata office market has expanded</p><p>rapidly in the SBD areas in recent years.</p><p>Commercial properties available in these</p><p>locations have quickly gained popularity</p><p>amongst the investors as well as end</p><p>users. A wide range of state-of-the-art</p><p>office buildings combined with good</p><p>infrastructure at extremely reasonable</p><p>prices have made these locations popular</p><p>as new office destinations to many</p><p>occupants other than IT &amp; IteS companies</p><p>in recent times. At present, Kolkatas main</p><p>IT corridor, Sector-V and New Town are</p><p>considered as the most sought-after office</p><p>locations in Kolkata. These two locations</p><p>have virtually no more vacant land where</p><p>IT companies can expand further. After</p><p>the introduction of Bantala as a new IT</p><p>location by the state government, another</p><p>promising new location is coming up at</p><p>Nonadanga near Ruby Hospital to cater</p><p>to the growing need of IT &amp; ITeS</p><p>companies in and around Kolkata. HSBC,</p><p>HCL and Rolta India has acquired five</p><p>acres of land each from the government</p><p>to built their new facilities at Nonadanga.</p><p>With the revival of office space demand</p><p>from the IT and ITeS sector, Kolkata office</p><p>market has witnessed strong buying and</p><p>moderate leasing activities over the past</p><p>one year where investors have outpaced</p><p>the end users. Investors are mainly</p><p>buying vacant spaces in the upcomingcommercial buildings located in the</p><p>secondary business districts (SBD) of</p><p>Topsia, Kasba connector, Sector-V and</p><p>New Town. Around 1.8 million sq.ft,</p><p>including both lease and outright office</p><p>transactions have happened in Kolkata</p><p>over the past one year.</p><p>With the renewed confidence amongdevelopers, the positive sentiments in the</p><p>economy has led to a rise in construction</p><p>activity across the city.</p><p>The absorption</p><p>has been driven largely by the IT &amp; ITeS,</p><p>telecom, steel, manufacturing and</p><p>engineering sectors.</p><p>During the last six months of 2010, CBD</p><p>area has witnessed the launch of a</p><p>90,000 sq.ft. commercial project by Belan</p><p>Group at Woodburn Park and the</p><p>completion of Diamond Prestige, a</p><p>2,37,000 sq.ft. of commercial building on</p><p>AJC Bose Road by Diamond Group,</p><p>Topsia has seen the copmpletion of PS</p><p>Pace (1,00,000 sq.ft. approx.) developed</p><p>by PS group.</p><p>Apart from some ongoing large office</p><p>projects such as DLF IT SEZ, Unitech</p><p>Infospace SEZ, Ambuja Ecospace Phase</p><p>II, Videocon E-Habitat, Merlin Infinity New Town, and Sector-V, Kolkata has</p><p>seen the launch of some new office</p><p>projects such as Infinity BNKe, Ambuja IT</p><p>Park, Mani Twin etc in Sector-V and New</p><p>Town in the 2nd half of 2010. Few other</p><p>projects such as PS Srijan Tech Park-II,</p><p>the 8,00,000 sq.ft. IT Park, a joint venture</p><p>between PS Group and Srijan, a 3,00,00</p><p>sq.ft project by Space group etc are in the</p><p>pipeline.</p><p> Approximately 8,00,000 sq. ft. office spacconstruction was completed in the SBD</p><p>marketsduring thelast six months.</p><p>Kolkata office market2010 has witnessed a strong investor interest through out the year with high levels of buying.</p><p>Source: NAI NK Realtors Research</p><p>Key Office Transactions(Lease) in 2nd half of 2010</p><p>2010 Year End Market Review</p><p>4</p><p> Accenture Infospace New Town 1,90,000</p><p>Technopolis ,000</p><p>Just Dial Godrej Waterside</p><p>DHL Benfish Tower</p><p>Hyundai Infinity Benchmark</p><p>L&amp;T Sector-V</p><p>Sector-V 13,000</p><p>Honeywell PS Srijan Techpark Sector-V 11,000</p><p>Sector-V 10,000</p><p>Salva Resources Ambuja Ecospace (SEZ) New Town 10,000</p><p>Sector-V</p><p>AN Capital Infinity Think Tank-I Sector-V 5,000</p><p>LG Electronics Vishnu Towers Sector-V 4,300</p><p>CMC Vishnu Towers Sector-V 4,200</p><p>46</p><p>8,000</p><p>Letse Software &amp; Services Infinity Think Tank-I Sector-V 4,800</p></li><li><p>8/3/2019 Year End Market Report 2010 44</p><p> 5/16</p><p>GRADE - A, Office Rental Values</p><p>GRADE - B, Office Rental Rates</p><p>CORPORATE SERVICES</p><p>FORECAST</p><p>SBD areas such as Kasba and Topsia are</p><p>expected to see a marginal rise in overall</p><p>lease and outright values while New Townand Sector-V will likely see a strong rise</p><p>in overall lease and outright values in the</p><p>short term.</p><p>Present downward trend in overall lease</p><p>rates in the CBD area Is likely to be</p><p>continued. However, the outright rate will</p><p>continue to heat up.</p><p>Buying activity in the SBD areas are</p><p>likely to be more in numbers in the</p><p>coming months.</p><p>LLooccaattiioonn RRaannggee ((RRss//SS qq..fftt ..))</p><p>Park Street 12,000-16,000</p><p>Camac Street 12,000-16,000</p><p> AJC Bose Road 8,000-16,000</p><p>Dalhousie 7,000 -10,000</p><p>Topsia 8,000 - 9,000</p><p>Kasba Xing 7,500 - 8,500</p><p>Salt Lake, Sector-V 4,000 - 5,550</p><p>Rajarhat, New Town 3,500 - 4,500</p><p>2010 Year End Market Review</p><p>5</p><p>VACANCYRATES</p><p>During the last six months of 2010, overall</p><p>vacancy rates in the CBD area remained</p><p>unchanged and stayed at around 4%. In</p><p>Topsia the overall vacancy rates</p><p>decreased from 14% to 13%. In Kasba</p><p>Connector Grade-A vacancy rate</p><p>increased from 20% to 26%. This is a</p><p>result of few new supply has been added</p><p>to the inventory, thus increasing overall</p><p>vacancy. The highest increase in vacancy</p><p>occurred in the New Town. Since mid-year</p><p>Grade-A office vacancy increased from</p><p>43% to 45% in New Town. Continued</p><p>completion of office space in New Town</p><p>has resulted in a increase in vacancy</p><p>rates. Overall vacancy rates in Salt Lake</p><p>Sector-V increased from mid-year from</p><p>30% to 33%.</p><p>LEASE RATES</p><p>During the last six months of 2010,</p><p>Kolkatas main CBD area such as Park</p><p>Street, Camac Street and AJC Bose Road</p><p>has witnessed a decline of almost 7% in</p><p>Grade-A office lease rates while the lease</p><p>rates of Grade-B office in the same</p><p>locations increased marginally except</p><p>Camac Street. The current lease rates for</p><p>Grade-A offices ranges between Rs 95-</p><p>120/sq.ft/month and for Grade-B offices</p><p>ranges between Rs 80-105/sq.ft/month.</p><p>New Town has witnessed the maximum</p><p>Grade-A office lease rate growth (around</p><p>16%). There were no changes recorded in</p><p>Grade-A office rentals in Topsia. Sector-V</p><p>had a marginal growth in overall office</p><p>lease rates which is currently hovering</p><p>between Rs 40 - 50/sq.ft/month.</p><p>Salt Lake New TownD alhousie Topsia</p><p>A.J.C. Bose RoadPark S treet Camac S treet</p><p>1 2 0</p><p>1 0 0</p><p>8 0</p><p>6 0</p><p>4 0</p><p>0</p><p>2 0</p><p>20082007 2009 2010</p><p>Q2 Q3 Q4 Q2Q1 Q4 Q4 Q4Q1 Q1Q2 Q2Q3Q 1 Q3 Q3</p><p>Proposed P.S. SRIJAN TECH PARK-II at Sector-V</p><p>Camac Street</p><p>Salt Lake New TownKasba Topsia</p><p> A.J.C. Bose RoadPark Street</p><p>16 0</p><p>12 0</p><p>10 0</p><p>80</p><p>60</p><p>40</p><p>0</p><p>14 0</p><p>20</p><p>20082007 2009 2010</p><p>Q2 Q3 Q4 Q2Q1 Q4 Q4 Q4Q1 Q1Q2 Q2Q3Q 1 Q3 Q3</p><p>Current Grade-A and Grade-B Office Vacancy Rate</p><p>G ra d e - A O f f ic e V a c a n c y G r a d e - B O f f i c e V a c a n c y</p><p>Source: NAI NK Realtors Research</p></li><li><p>8/3/2019 Year End Market Report 2010 44</p><p> 6/16</p><p>RETAIL SERVICES</p><p>Kolkata retail marketMost of the mall developers in Kolkata have reactivated their mall projects over the pastthree to four quarters.</p><p>2010 Year End Market Review</p><p>6</p><p>On the backdrop of improving</p><p>consumer confidence, supported</p><p>by the countrys surging economy</p><p>which has been growing at an 8.9% pace</p><p>for the past three quarters, Kolkata retail</p><p>market has experienced a spectacular</p><p>turnaround in sales as well as new store</p><p>expansions over the last six months of</p><p>2010.</p><p>The growth has been spectacular in</p><p>almost every sectors of organised retail</p><p>such as food &amp; grocery, footwear,</p><p>consumer durables, furniture, eye wear,watches, mobile &amp; accessories, beauty</p><p>care services, health &amp; wellness, F&amp;B,</p><p>automobile, entertainment etc. All have</p><p>expanded across Kolkata over the past</p><p>one year.</p><p>Continued success of Future Groups</p><p>various retail formats operational in</p><p>Kolkata and other tier-II towns have</p><p>helped other brands such as Reliance</p><p>Retail, RPG Retail, Aditya Birla Retail etc.</p><p>to execute their expansion plan in full</p><p>gear across all their formats in the last</p><p>phase of current year.</p><p>In the entertainment sector, Kolkata has</p><p>seen some regional players like Priya</p><p>Entertainment, Eyelex Films etc. to come</p><p>up strongly with their economic format in</p><p>2010. Understanding of the local market,</p><p>strong hold on regional movies,</p><p>reasonable ATP (Average Ticket Price)</p><p>etc. are all helping the regional level</p><p>multiplex operators to give tough</p><p>competition to national level players.</p><p>The concept of conversion of old cinema</p><p>hall to multiplex has already started in</p><p>Kolkata. Hind-Fame, a two screen</p><p>multiplex is coming up on closed Hind</p><p>Cinema at Ganesh Chandra Avenue in</p><p>central Kolkata.</p><p>The residences of Salt Lake will see the</p><p>opening of HDILs first multiplex</p><p>Standalone Transactions in Mature Urban Areas</p><p>Mature urban markets have also seen a</p><p>number of new stores to come up in the</p><p>last couple of quarters. However,</p><p>majority of the newly opened stores are</p><p>small-format stores.</p><p>Broadway shortly in Down Town mall.</p><p>Multiplex goers in Kolkata are going to</p><p>get the international viewing experience</p><p>with the opening of Mexican multiplex</p><p>chain Cinepolis within a couple of years.</p><p>The Mexican chain has signed their first</p><p>property in upcoming Acropolis mall.</p><p>The ever expanding food and beverages</p><p>sector particularly the restaurant segment</p><p>consistently expanded across Kolkata</p><p>through out the year. The restaurant</p><p>industry showed i ts buoyancy even during</p><p>the recession. All kind of restaurantformat has opened over the past few</p><p>months. Amongst them the lounge format</p><p>is fast gaining popularity in Kolkata.</p><p>A restaurant and lounge bar, Hops has</p><p>been operational on a 7,500sqft property</p><p>in South City Mall since September, 2010.</p><p>Hushh the Resto Lounge and Bar has</p><p>opened in South City mall in November,</p><p>2010.</p><p>Another lounge bar Nocturne has come</p><p>up on Theater Road at year end.</p><p>The House of Kommons (HoK) a lounge</p><p>bar has opened in Salt Lake, Sector V in</p><p>October, 2010.</p><p>The newest fine-dining addition to the city</p><p>is Zodiac, on Loudon Street by</p><p>Welcomgroup Kolkata.</p><p>News the fine dining restaurant at</p><p>Hometown Mall in Rajarhat opened in</p><p>November, 2010.</p><p>Apart from the opening of Lounge Bar &amp;</p><p>Restaurant, Kolkata has seen some local</p><p>restaurant chains to expand in various</p><p>part of Kolkata over the past six months.</p><p>Azad Hind Dhaba opened stores in</p><p>Alipore, Baishnabghata Patuli near Garia.</p><p>Alibaba another local chain opened up</p><p>in Ajay Nagar near Bengal Ambuja</p><p>housing project, Gariahat, Chowringhee</p><p>etc.</p><p>In Kolkata, the early sign of revival was</p><p>first set out in the sub urban locations.</p><p>Areas such as Garia, Narendrapur, NSC</p><p>Bose Road, Raja SC Mallick Road,</p><p>Behala, Lake Town, BT Road,</p><p>Barrackpore, Sodepur, Barasat, etc. have</p><p>witnessed a significant number of retail</p><p>space leasing in the past twelve months.</p><p>The newly opened showrooms are a</p><p>mark of the buoyancy of the Kolkata retai</p><p>sector. However, these are mostly smalle</p><p>format stand alone properties located on</p><p>the ground or ground and first floors</p><p>combined.</p><p>Increased new and quality supply, low</p><p>occupancy cost as well as an overall</p><p>improvement in consumer confidence</p><p>have helped spur the retail sector in the</p><p>suburban locations across Kolkata.</p><p>Source: NAI NK Realtors Research</p><p>I Core Planet Barasat 25,000</p><p> Azadhind Dhaba Baishnabghata Patuli2,500 </p><p>(app.</p><p>Godrej Interio NSC Bose Road 7,000 </p><p>Mega Mart Lake Town 4,000 Bengal Hyundai BT Road 3 ,500 Bata Barasat 3,000 </p><p>Khadim Garia 3,000 </p><p>MP Jewellers Garia 2,000 </p><p>Hero Honda NSC Bose Road 1,600 MP Jewllers Behala Tram Depot 1,000 </p><p>B-18 Chowringhee 25,000 (app.)</p><p>Krazy Kebabs N.H. Sarani 4,000 Samsung Lee Road 4,000 </p><p>Calvin Klein Woodburn Park 2,500 </p><p>Tanishq B.B.Ganguly Street 2,500 </p><p>Urban Gypsy Dover Lane 1,500 </p></li><li><p>8/3/2019 Year End Market Report 2010 44</p><p> 7/16</p><p>Significant Mall Transactions</p><p>Reliance Retail Avani Riverside 1,00,000 (app.)</p><p>Spencers Retail Axis 50 ,000 </p><p>Cinepolis Acropolis 40, 000 </p><p>Bigbazaar Wood Square 30, 000 </p><p>Star Mark Mani Square 15, 000</p><p>Future Mall Supply</p><p>Lake Mall Lake Market Space Group 2,50,000 2011</p><p>North City Lake Town Diamond Group 3,00,000 2011</p><p>Avani Riverside Howrah Avani Group 3,00,000 2011</p><p>Sishir Kunj Madhyamgram Be ngal Shelter 3,00,000 2011</p><p>Acropolis Kasba Merlin Group 3,50 000 2012</p><p>Varna Parichaya College Street Bengal Shelter 12,00,000 2012</p><p>Spencers Galleria Park Circus RPG Group 4,00,000 2012</p><p>,</p><p>RETAIL SERVICES</p><p>Source: NAI NK Realtors Research</p><p>2010 Year End Market Review</p><p>7</p><p>Varnaparichay Indias first integrated book mall at College Street near Sealdah</p><p>Forum Court Yard, the extension of</p><p>Forum mall located at Elgin Road, has</p><p>opened its door in August, 2010. This is</p><p>the only fully operational mall that came</p><p>up in 2010 in Kolkata. Court Yard has an</p><p>impressive list of international premium</p><p>brands that include Aldo, Promod,</p><p>Mango, Charles &amp; Keith, Black Label,</p><p>Benetton etc.</p><p>Other international brands such as Jack &amp;Jones, Vero Moda, Only, Pieces, Esprit,</p><p>Timberland etc. have also opened stores</p><p>in the South City mall, an operational</p><p>upmarket mall located on Prince Anwar</p><p>Shah Road in South Kolkata.</p><p>Apart from being present in malls,</p><p>international brands have also started</p><p>actively looking at new stand alone</p><p>properties coming up in upmarket areas.</p><p>Kolkata has also witnessed the opening</p><p>of 3,50,000 sq.ft. Axis Mall developed</p><p>by Peerless Group at New Town, an</p><p>upcoming satellite township in Rajarhat in</p><p>April 2010. The mall is now partly</p><p>operational and yet to find sufficient</p><p>footfall due to lack of potential</p><p>catchments in the neighbou...</p></li></ul>