Eastern cities are becoming attractive alternatives to the saturated markets of Bangalore and Hyderabad.

ishi Jain, Managing Director, Jain Group

How dow you assess the real estate market revival in the eastern part of the country?

The eastern region of India has indeed experienced a unique pattern of growth in the real estate sector. In the previous year, the real estate market in eastern India, particularly cities such as Kolkata, Bhubaneswar and Guwahati, displayed robust recovery after a period of slowdown due to the pandemic. There are several indicators that contribute to this trend.

There has been an increase in the demand for residential properties. The migration of professionals to these cities due to remote working opportunities, increased affordability, and government initiatives like the Pradhan Mantri Awas Yojana (PMAY) have played a significant role in this resurgence. For instance, according to data from the National Real Estate Development Council (NAREDCO), the sale of residential properties in Kolkata grew by approximately 50% compared to the previous year.

The commercial real estate sector, which, contrary to initial apprehensions about the impact of remote work, has also seen an upward trend. The primary driver for this has been the burgeoning IT and ITeS sectors, which have expanded into the east. A study by JLL India estimated a 10% growth in commercial property demand in the aforementioned cities in the past year.

However, it's not just the urban areas; rural regions have also shown promising growth, primarily due to the significant thrust on infrastructure development by the government. For instance, the rural roads program, Pradhan Mantri Gram Sadak Yojana (PMGSY), has created significant opportunities for real estate expansion in these areas.

Overall, the real estate sector's revival in eastern India is an outcome of a multitude of factors including government policies, industry shifts, the advent of remote work, and increased spending on infrastructure. While we are buoyed by the growth last year, we must continue to foster favourable conditions to sustain and accelerate this growth momentum.

How is the demand picking up for real estate projects in Kolkata and other eastern markets?

The dynamics of real estate demand vary across different segments, and it's indeed fascinating to explore them. Starting with residential real estate, we're seeing substantial demand in both affordable and luxury segments in eastern markets, especially in Kolkata. According to a report by CREDAI Bengal, there was a rise of around 20% in affordable housing sales in 2022 compared to the previous year. This is largely attributable to a few key factors - government schemes like PMAY, lowering of home loan interest rates, and increased focus on home ownership post-pandemic.

The demand is driven by high net worth individuals (HNWIs) and non-residential Indians (NRIs) seeking high-end amenities, larger spaces, and properties that offer a superior lifestyle quotient. The pandemic-induced realisation of the importance of living spaces has particularly fuelled this trend.

On the commercial front, a study by CBRE South Asia showed that demand for office spaces has increased in Kolkata. The IT/ITeS sectors, buoyed by the work from home trend and new startups' emergence, have contributed significantly to this demand. We're seeing increased interest in Grade A office spaces and tech parks. Eastern cities are becoming attractive alternatives to the saturated markets of Bangalore and Hyderabad.

In conclusion, the demand for various types of real estate projects across the eastern market, particularly Kolkata, has been quite dynamic, influenced by changing lifestyles, work patterns, and government policies. As developers, we are continually adapting to these changes to provide suitable solutions that meet our customers' evolving needs.

How far are the infrastructure developments influencing the real estate market growth in the eastern region?

The eastern region has been witnessing major strides in transportation infrastructure. For instance, in Kolkata, the extension of the East-West Metro corridor and the development of the New Garia-Airport Metro corridor have drastically improved connectivity across the city.

Highways like the Kolkata-Siliguri highway, have further enhanced the region's connectivity. Such projects typically boost the value of land and property in their vicinity, making them attractive to both developers and buyers.

Industrial growth is another significant aspect of infrastructure development. The eastern region, home to dedicated industrial corridors like the Amritsar Kolkata Industrial Corridor (AKIC), has seen accelerated industrial development. This has led to an influx of working population in these regions, consequently driving the demand for housing and commercial properties.

Finally, social infrastructure developments, such as healthcare, education, and retail facilities, also play a crucial role in influencing real estate growth. For example, the establishment of the All India Institute of Medical Sciences (AIIMS) in Kalyani has increased demand for both residential and commercial properties in the area.

Which are the latest projects coming up and how is the customer demand?

Our key focus has always been combining the philosophy of hospitality with affordable housing. We are coming up with several housing projects in the affordable housing space, bungalow space and also in the hospitality sector.

This quarter, we are going to launch the first Dusit Thani International Hotel of India. Dusit is one of the leading hospitality brands globally and is headquartered out of Thailand. The hotel will be located in Rajarhat action area 2 and it is going to be one of the premier housing and hospitality destinations of the city.

We are also launching a 450-apartment affordable housing project in Madhyamgram and also two niche bungalow projects in the Joka area and in the tier 2 cities of Siliguri and Durgapur.

In essence, the customer demand for our projects has been highly promising. We believe this is a testament to our commitment to quality, innovative designs, and a clear understanding of our customers' needs. We continue to strive for excellence and endeavour to contribute to the vibrant landscape of real estate in Kolkata.

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