After a bullish phase for the residential real estate segment, retail is the next segment which is seeing an unprecedented growth in the City of Joy – Kolkata. With launch of many new retail projects such as serviced shopping complexes, malls and high streets projects, the city is witnessing expansion in retail sector. Most of the development is planned in the emerging suburban markets, primarily due to availability of land.
According to Dheeraj Jain from Rajat Venture and Infra Limited, “Kolkata suburban areas such as New town, Salt Lake, Rajarhat and EM Byepass saw a 10-15 percent increase in retail values in past quarter and is still enhancing”. The expansion in the retail sector and entry of international retailers in the market are the major attributes of enhanced demand, he said.
According to Aseem Kumar from Realty Buildtech Private Limited, “Kolkata has gradually made its way with international premium brands and international retailers who showed interest in expanding their business in the city and thus bucking the realty sector.”
International brands such as Zara, Gucci, Armani, Dior are few of the big retailers coming in the submarkets of Kolkata and thus creating a niche demand for quality retail spaces, he said.
Demand from retailers was mostly focused on malls in the suburban locations due to lack of leasable space in Central Business District (CBD) areas as told by Shyam Mukherjee from Krishna Realty Group. Capital and rental values of shops in malls and on the high streets witnessed a rise across sub-markets owing to enhanced demand than supply, he added.
New retail projects such as Axis Mall, MG Infra, Centrus and other serviced complexes are gaining popularity among the retailers. The current capital values of upcoming spaces in suburban areas vary from Rs 6,000-10,000 per sq ft which is very affordable as compared to CBD areas where retail values almost double ranging from Rs 12,000-15,000 per sq ft.
Also, growing infrastructure and connectivity in the city has made it possible to reach these areas within desired time. Most of the upcoming projects are located near to the metro station thus easily accessible from city centre, added Jain. With the ongoing trend, it is estimated that the city will surge for serviced retail spaces in near future and henceforth will witness rise in values.