Govt push increases commercial realty demand in Kolkata

KOLKATA: Only 5% of the 0.3 million square feet of new inventory in mall space is lying vacant in Kolkata. Chief Minister Mamata Banerjee’s calls to set up businesses in the state seem to have started getting responses with commercial space deals clocking a 15-20% rise in number in the last two months. The biggest deal in the commercial realty space was Fosma’s 30,000-sq realty space was Fosma’s 30,000-sqft space in Salt Lake.

“Companies like Fosma have been on the lookout to enter Kolkata for a long time but were unsure about the idea. The stable government is finally closing deals. To begin with, Fosma Maritime Institute and Research Organisation has bought the space in Godrhe Riverside for approximately Rs 16 crore,” said Rahul Baid, head of corporate transactions at Champalall & Co, a city-based real estate consultant.

While big names like Tata Metaliks have signed deals with state bodies, a large number of national and international brands, including Oracle, Uber and Honda, have rented out office space in Kolkata. The central business district that does not have modern facilities in most buildings too has seen some activities in the last six months with old properties getting a facelift. Diamond Heritage on Strand Road was one such instance.

“Even if the deal sizes were not too big, a mixed bag of companies, be it startups or infrastructure companies or shipping firms, have taken up around 5 lakh square feet of commercial space,” said Jitendra Khaitan of Pioneer Property Management Ltd, another city-based consultant. With latest entrants like Jimmy Choo in the Kolkata retail scenario, other retailers too have set out on an expansion mode with brands like Westside looking for space in various parts of the city.

According to a retail report of Cushman & Wakefield, Kolkata has the least vacancy in mall space.”The Indian retail market appears to have bottomed out from its slack and is expected to grow in the coming years. Factors such as positive economic outlook and large market potential continue to attract retailers to India,” said Anshul Jain, managing director at Cushman & Wakefield.

According to the report, only 5% of the 0.3 million square feet of new inventory in mall space is lying vacant. In cities like Ahmedabad, Chennai, Delhi NCR, Pune, Bengaluru and Mumbai, vacancy varies from 8% to 33%.

Credits ET Realty

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