Rajarhat real estate surges; commercial rents spike 35-40 per cent in three years

KOLKATA: Rajarhat seems to be getting a new lease of life. The demand for commercial space is once again beginning to look up and real estate developers are hopeful that the worst is perhaps over. Compared to the lull in the property space during the sub prime crisis in 2008-2009, rents at Rajarhat have gone up by nearly 35-40 per cent.

This is indeed good news for many. The sprawling township along the eastern perimeter of Kolkata, was conceptualised as a satellite township to offload the bursting-at-seams metropolis, at least partially. Developers rushed in to create residential and commercial space with high hopes. Somehow, inadequate infrastructure facilities impeded the growth. Then came the property market depression, following the 2008 global slowdown. Rajarhat remained where it was; it never got populated enough.

Hence the current upswing in the rents, commercial as well as residential, is good news. "The city has to grow horizontally to accommodate the growing population and in the next 10 years, Rajarhat will be the place for growth," said Kumar Shankar Bagchi, managing director, Bengal Peerless. Bagchi is mulling upon the idea of opening a jumbo Shoppers Stop showroom at the up-and-coming Block A of Axis Mall. He wouldn't be going ahead with it, unless things improve.

Axis Mall is a magnificent edifice but entire swathes of the building have been lying vacant for several years. But the situation is changing. As the neighbourhood is getting more populated, the likes of Bagchi are willing to put in their penny.

TANGIBLE SIGNS OF CHANGE

Bagchi's new-found faith is reminiscent of what has been said through the last ten years and may not assuage the skeptics who have not seen anything substantial. However, this time the signals are different.

"Rajarhat has witnessed very good response in terms of both commercial and residential demand," said Harshavardhan Neotia, chairman, Ambuja Realty. "Both our malls, the City Centre Salt Lake and City Centre New Town are doing well as is evident from the consistent high footfalls and satisfied retailers.

Rajarhat too holds great potential as the next big complete township after Salt Lake, offering comprehensive work-life balance," he added.

Bagchi couldn't agree more with Neotia. He feels that the IT hub nearby has something to do with the emerging revival of Rajarhat. "People working in the IT segment invest in Rajarhat and New Town, because of a better lifestyle - Broad roads, schools, hospitals, shopping arcades and less congestion. Rajarhat offers what Kolkatais too choked to dish out anymore," Bagchi said.

Source:economictimes.indiatimes.com