A promising market in the making
The real estate market in the eastern region is picking up growth momentum with the growing infrastructure development and affordability. In this scenario, Construction Times find out the current market scenario, new opportunities, and the future growth trend.
The eastern part of India was considered as slow in development and growth compared to the other regions of the country. However, things are changing in the region with many infrastructure developments gaining momentum in the growth in cities like Kolkata, apart from emerging cities in Odisha and Assam. Simultaneously, the real estate market in the eastern region of India is experiencing significant growth and transformation. Cities like Kolkata, Bhubaneswar, Guwahati, and Patna have witnessed increased commercial and residential construction activities.
Demand drivers
New infrastructure developments such as roads, airports, and metro connectivity have enhanced accessibility and attracted investments in the real estate sector in many cities in the eastern region, which was earlier restricted to only Kolkata. Also, growing urbanization is propelling the demand for affordable housing. Government initiatives such as Pradhan Mantri Awas Yojana (PMAY) are also pushing the growth of affordable housing in the region. Improved transportation and logistics infrastructure has pushed the industrial activities in the region. Industrial corridors like Kolkata-Delhi Industrial Corridor (KDIC) and proposed Chennai-Kanyakumari Industrial Corridor (CKIC) are attracting industrial investments which is expected to positively impact the local real estate markets.
Residential market
In the residential real estate market, affordable segment has seen a significant growth across the eastern region. There is a significant demand for affordable housing in Kolkata and the eastern market due to population growth, urbanization, and rising middle-class income levels. Several developers are focusing on suburban areas surrounding Kolkata to offer affordable housing options with good connectivity to the city center. Various government schemes such as PMAY have encouraged the development of affordable housing projects in the region.
Luxury housing might see slower growth compared to affordable options, but there’s still a niche market for high-end apartments in prime Kolkata locations. The luxury real estate market in Kolkata and the eastern region has witnessed steady growth due to an increase in high-net-worth individuals seeking premium residential properties. Luxury projects are predominantly concentrated in prime locations such as Alipore, Ballygunge, Salt Lake City, Rajarhat, New Town, etc., offering modern amenities and high-end features.
“The demand for affordable housing is significant across the east, with government initiatives and smaller unit options catering to this segment. Luxury housing might see slower growth compared to affordable options, but there’s still a niche market for high-end apartments in prime Kolkata locations,” says Aayushman Jain, Director, Siddha Group.
“In Kolkata, affordable housing remains the dominant segment in the residential market, comprising 45% of new supply in the first half of 2023. Government initiatives like the Pradhan Mantri Awas Yojana (PMAY) have significantly boosted this sector, making home ownership more accessible to lower-income groups. The other eastern markets are also experiencing a rising demand for affordable housing due to urban expansion and an influx of people from rural areas seeking better employment opportunities,” says Sahil Saharia, CEO, Bengal Shristi Infrastructure Development Ltd. According to him, while luxury housing forms a smaller market portion, it shows steady demand among high-net-worth individuals.
“It's important to note that while there is demand for both affordable and luxury real estate segments in Kolkata and the eastern region of India, a balanced approach is necessary for developers to cater to different customer preferences effectively. Conducting thorough market research based on specific localities will help identify potential opportunities within these segments,” says Rishi Jain, Managing Director, Jain Group.
Commercial real estate
The eastern region has also witnessed a surge in commercial projects including office spaces, shopping malls, multiplexes, and hotels due to growing business activities.
“The commercial real estate market in the east is experiencing growth, with a significant demand for office spaces driven by local businesses and the entry of national companies. This demand is further supported by the city’s improving infrastructure and connectivity, including ongoing and proposed projects to enhance transportation and utility services,” says Saharia.
The commercial sector, driven by the IT/ITES industry, thrives in Kolkata's prime Central Business Districts locations. Key areas like Sector V, New Town and Esplanade are prime spots for commercial projects.
Future opportunities
According to Saharia, eastern parts like Assam and West Bengal are experiencing rapid urbanization and infrastructure growth, positioning it as a prime destination for residential real estate. The commercial sector is also growing, driven by demand for office spaces from local and national businesses, supported by improved connectivity and regional economic development.
“The eastern region offers promising real estate opportunities, driven by high CAGR (Compounded Annual Growth Rate) and growing business centres in Kolkata. Residential clubs are capturing hearts, providing a haven where families can unwind and create lasting memories with amenities like swimming pools, mini-theatres, multi-activity zones and gaming zones,” says Ayushman Jain.
Rishi Jain is of the view, “Overall, in terms of market opportunities, I believe that focusing on affordable housing, mixed-use developments, sustainable practices, and catering to increasing commercial space demands will help real estate developers tap into the potential growth prospects in Kolkata and the eastern region of India.”
According to Saharia, future trends such as smart city developments, sustainable buildings, co-working spaces, integrated townships, and the rise of Tier II and III cities are expected to shape the market landscape. “These factors make the eastern region a promising area for real estate investments and development,” he concludes on a high note.
The real estate market in the eastern region is picking up growth momentum with the growing infrastructure development and affordability. In this scenario, Construction Times find out the current market scenario, new opportunities, and the future growth trend.
The eastern part of India was considered as slow in development and growth compared to the other regions of the country. However, things are changing in the region with many infrastructure developments gaining momentum in the growth in cities like Kolkata, apart from emerging cities in Odisha and Assam. Simultaneously, the real estate market in the eastern region of India is experiencing significant growth and transformation. Cities like Kolkata, Bhubaneswar, Guwahati, and Patna have witnessed increased commercial and residential construction activities.
Demand drivers
New infrastructure developments such as roads, airports, and metro connectivity have enhanced accessibility and attracted investments in the real estate sector in many cities in the eastern region, which was earlier restricted to only Kolkata. Also, growing urbanization is propelling the demand for affordable housing. Government initiatives such as Pradhan Mantri Awas Yojana (PMAY) are also pushing the growth of affordable housing in the region. Improved transportation and logistics infrastructure has pushed the industrial activities in the region. Industrial corridors like Kolkata-Delhi Industrial Corridor (KDIC) and proposed Chennai-Kanyakumari Industrial Corridor (CKIC) are attracting industrial investments which is expected to positively impact the local real estate markets.
Residential market
In the residential real estate market, affordable segment has seen a significant growth across the eastern region. There is a significant demand for affordable housing in Kolkata and the eastern market due to population growth, urbanization, and rising middle-class income levels. Several developers are focusing on suburban areas surrounding Kolkata to offer affordable housing options with good connectivity to the city center. Various government schemes such as PMAY have encouraged the development of affordable housing projects in the region.
Luxury housing might see slower growth compared to affordable options, but there’s still a niche market for high-end apartments in prime Kolkata locations. The luxury real estate market in Kolkata and the eastern region has witnessed steady growth due to an increase in high-net-worth individuals seeking premium residential properties. Luxury projects are predominantly concentrated in prime locations such as Alipore, Ballygunge, Salt Lake City, Rajarhat, New Town, etc., offering modern amenities and high-end features.
“The demand for affordable housing is significant across the east, with government initiatives and smaller unit options catering to this segment. Luxury housing might see slower growth compared to affordable options, but there’s still a niche market for high-end apartments in prime Kolkata locations,” says Aayushman Jain, Director, Siddha Group.
“In Kolkata, affordable housing remains the dominant segment in the residential market, comprising 45% of new supply in the first half of 2023. Government initiatives like the Pradhan Mantri Awas Yojana (PMAY) have significantly boosted this sector, making home ownership more accessible to lower-income groups. The other eastern markets are also experiencing a rising demand for affordable housing due to urban expansion and an influx of people from rural areas seeking better employment opportunities,” says Sahil Saharia, CEO, Bengal Shristi Infrastructure Development Ltd. According to him, while luxury housing forms a smaller market portion, it shows steady demand among high-net-worth individuals.
“It's important to note that while there is demand for both affordable and luxury real estate segments in Kolkata and the eastern region of India, a balanced approach is necessary for developers to cater to different customer preferences effectively. Conducting thorough market research based on specific localities will help identify potential opportunities within these segments,” says Rishi Jain, Managing Director, Jain Group.
Commercial real estate
The eastern region has also witnessed a surge in commercial projects including office spaces, shopping malls, multiplexes, and hotels due to growing business activities.
“The commercial real estate market in the east is experiencing growth, with a significant demand for office spaces driven by local businesses and the entry of national companies. This demand is further supported by the city’s improving infrastructure and connectivity, including ongoing and proposed projects to enhance transportation and utility services,” says Saharia.
The commercial sector, driven by the IT/ITES industry, thrives in Kolkata's prime Central Business Districts locations. Key areas like Sector V, New Town and Esplanade are prime spots for commercial projects.
Future opportunities
According to Saharia, eastern parts like Assam and West Bengal are experiencing rapid urbanization and infrastructure growth, positioning it as a prime destination for residential real estate. The commercial sector is also growing, driven by demand for office spaces from local and national businesses, supported by improved connectivity and regional economic development.
“The eastern region offers promising real estate opportunities, driven by high CAGR (Compounded Annual Growth Rate) and growing business centres in Kolkata. Residential clubs are capturing hearts, providing a haven where families can unwind and create lasting memories with amenities like swimming pools, mini-theatres, multi-activity zones and gaming zones,” says Ayushman Jain.
Rishi Jain is of the view, “Overall, in terms of market opportunities, I believe that focusing on affordable housing, mixed-use developments, sustainable practices, and catering to increasing commercial space demands will help real estate developers tap into the potential growth prospects in Kolkata and the eastern region of India.”
According to Saharia, future trends such as smart city developments, sustainable buildings, co-working spaces, integrated townships, and the rise of Tier II and III cities are expected to shape the market landscape. “These factors make the eastern region a promising area for real estate investments and development,” he concludes on a high note.
