Kolkata's real estate market set for high growth

Kolkata, Feb 10: Kolkata is poised for high-sector growth in office, retail, hospitality and residential, according to the report of one of the world's leading real estate firm Jones Lang LaSalle (JLL).

On the occasion of opening its 7th India office here yesterday, a report- ''Emerging City Winners Profiles: Kolkata,'' was released by the JLL stating that Kolkata's real estate market is set for a high growth phase fuelled by the IT/ITES sector.

The report also stated that increasing corporate presence is stimulating growth in per capita income and encouraging consumption in the city.

According to the report, Kolkata, whose economy grew by 8 per cent in 2005, is the home to 175 IT and ITES firms which employs approximately 40,000 people. Rapid expansion and increased business activity is expected to strongly boost the demand for speculative built space as well as built-to-suit offices and 4.5 million square feet additional supply is likely to be completed by this year in Salt Lake and New Town Rajarhat.

The movement of corporates into the city is also triggering a growth phase in retail, hotels and residential properties.

The city had become a high priority destination for domestic and international retailers with over 2-3 million square feet of organised retail under construction by 2008, the report said.

Stimulated by the growth of the IT/ITES sector , which is growing at a rate of 70 per cent in the city, hotel room demand in Kolkata is also expected to grow anually at 11.7 per cent over the next five years, it said.

The residential demand would continue to be on the rise, as shown by absorption patterns of recent residential demand, which are expected to grow in tandem with economic activity, the report said.

''Emerging City Winners,''is the phase IV of the JLL's world winning cities research, a multi-year programme which examines trends that impact the business and economic landscape and how these factors are coalescing to create the rising urban stars of the next decade.

Speaking on the occasion, Country head of JLL Vincet Lottefier said, '' The city boasts of a highly literate and well equipped workforce, lower land acquisition costs as compared to Delhi and Mumbai and positive initiatives by the government which make it a compelling destination for corporates and developers''.

UNI