Nexus Select Trust, supported by Blackstone, is exploring a major expansion in Kolkata, aiming to acquire Ambuja Neotia's City Centre Salt Lake and City Centre New Town malls. Valued between INR 1,800 crore and INR 2,000 crore, the malls span 9 lakh square feet and are integral to Kolkata's retail scene. The deal is in early stages, with Nexus also nearing a INR 1,000 crore acquisition of three Hyderabad malls and planning further growth. With a low loan-to-value ratio, Nexus seeks to significantly enhance its retail portfolio, potentially reshaping Kolkata's shopping landscape.Read more

In June, the Kolkata Metropolitan Area saw a record 25% increase in residential property registrations compared to the previous year. This surge occurred while a stamp duty discount was available. The state government will now end these benefits, including a 2% stamp duty reduction and a 10% circle rate cut, on July 1, 2024. Since these incentives began in July 2021, approximately 140,000 homes were registered. Despite the rebate ending, Knight Frank anticipates continued market growth due to strong demand. The company also reported new trends in the important zones, such as the South and North, within the city.Read more

The New Town Kolkata Development Authority (NKDA) has introduced new regulations permitting builders to store construction materials on footpaths under specific conditions. Developers with approved plans can now use footpaths for storage, provided a 1.5-metre pedestrian passage remains clear. This initiative balances construction needs with pedestrian safety. All future projects in New Town will require a construction management plan detailing material storage and waste disposal practices. An upcoming Standard Operating Procedure (SOP) will outline enforcement and penalties. This regulation aims to improve construction efficiency while ensuring safe and uncluttered sidewalks for pedestrians.Read more

The Kolkata Municipal Corporation (KMC) plans to amend building regulations to prevent the legalisation of unauthorised constructions exceeding 10% of the permitted area. Mayor Firhad Hakim announced a strict stance against illegal buildings, allowing minor regularisation but not for significant plan changes. A senior KMC official highlighted the difficulty of dealing with buildings where entire floors were added without approval. Following a tragedy in Garden Reach, KMC withheld completion certificates for many new buildings due to rule violations. Hakim urged the police to take quicker action against unauthorised constructions and called for a ward-wise campaign to inform citizens about new rules. The KMC aims to ensure strict adherence to building regulations and promote safer, more orderly development in Kolkata.Read more

CtrlS Datacenters is set to invest INR 2,200 crore in Kolkata, developing a 60 MW IT load capacity data centre campus in New Town. This project, with a 16 MW first phase scheduled for completion by end-2024, will feature the first Rated-4 data centre in eastern India, adhering to top global reliability and security standards. President Suresh Kumar Rathod emphasised Kolkata's rising digital prominence, backed by its strong economic position and substantial internet user base. This expansion will bolster Kolkata's digital infrastructure, offering managed services and high-speed connectivity, thus driving business growth and creating new job opportunities.Read more

Construction on the Kolkata Metro's Orange Line, stretching 29.87 km, is advancing swiftly, promising faster commutes between New Garia and Netaji Subhas Chandra Bose International Airport. Trains currently run on the initial 5.40 km segment from Kavi Subhash to Hemanta Mukhopadhyay, with a 4.39 km extension to Beleghata station set to launch soon after receiving safety clearances. This expansion is vital for Kolkata's 14.8 million residents, enhancing connectivity and reducing traffic congestion. The final 9 km stretch, nearing 90% completion, includes 10 new stations with modern amenities, potentially boosting real estate values and rental demand along the route.Read more

In March 2024, apartment registrations in the Kolkata Metropolitan Region (KMR) increased by 17% year-on-year, totaling 3,936 units, indicating a preference for budget-friendly homes. Notably, apartments under 500 square feet rose to 45%, reflecting a 21-point increase from the previous year. While units between 501 and 1,000 square feet still hold a significant share at 48%, affordability remains paramount. Abhijit Das of Knight Frank India emphasises the need for large, affordable projects with good connectivity. The real estate sector pushes for a permanent stamp duty rebate extension to sustain sales momentum, while infrastructure development enhances market appeal, especially in South and North zones known for affordable options.Read more

The Calcutta High Court, led by Chief Justice TS Sivagnanam and Justice Hiranmay Bhattacharyya, issued a crucial directive prohibiting the registration of buildings without approved plans. This decision was prompted by the collapse of an under-construction building in the Garden Reach locality, revealing its lack of a sanctioned plan. The court emphasised the necessity of adhering to sanctioned building plans to ensure structural integrity and safety. This ruling signifies a significant step towards regulating construction practices and preventing future mishaps in the region.Read more

The Kolkata Municipal Corporation (KMC) is looking to introduce amendments to the KMC Act to impose stricter penalties on unlawful property developers, including making certain offenses non-bailable and punishable by up to 10 years in jail and fines up to INR 50,000. The KMC Mayor recently met with municipal officials to discuss the amendments. Once approved by the KMC House, the amendments would be sent to the state government for final approval. The proposed changes aim to deter unscrupulous promoters by clarifying the ambit of legal construction activities and introducing longer jail terms.Read more

Kolkata-based Jain Group plans to invest INR 500 crore by 2030 for expanding its hospitality business. Teaming up with Sarovar Hotels Pvt Ltd, they will launch a new hotel in Rajarhat within four months, investing INR 120 crore initially. The upcoming hotel, Sarovar Portico Kolkata Rajarhat, will boast 128 rooms across various categories and is set to open this July. Jain Group aims to reach 1,000 hotel rooms by 2030, including upscale mid-market to luxury segments, with existing presence at Holiday Inn, Kolkata airport, and plans for three more hotels in Siliguri, Durgapur, and Joka.Read more

PNT Reporter

In Kolkata, the KMC buildings department has cracked down on six illegal buildings near a collapsed site in Azhar Molla Bagan. One dangerously tilting structure faces imminent demolition, while efforts are on to locate three others showing signs of instability. Promoters will face hearings at the civic headquarters, with potential demolition orders for unsafe portions. Residents face uncertainty over the fate of their homes, especially those tilting towards neighbouring buildings. Mayor Firhad Hakim reaffirms zero tolerance for illegal constructions, highlighting the urgent need to address the proliferation of such buildings to prevent future tragedies.Read more

Prime Minister Narendra Modi inaugurated metro projects worth INR 15,400 crore, including Kolkata's underwater metro tunnel, marking a significant enhancement to the city's metro network. The Kolkata Metro's Esplanade-Howrah Maidan section, featuring India's first underwater transportation tunnel beneath the Hooghly river, was inaugurated at a cost of INR 4,960 crore. Modi interacted with students during a metro ride through the tunnel and also inaugurated other metro sections and connectivity projects in Kolkata. Additionally, he laid the foundation stone for various metro projects in Pune, Kochi, and Agra, emphasising the government's focus on modernising public transportation across the country.Read more

The Kolkata Municipal Corporation (KMC) has mandated online applications for building design clearance, except for renovations or insecure building reconstructions. Mayor Firhad Hakim emphasized the efficiency and transparency of the online system, which now reduces approval time from 45 days to a mere fortnight. With approximately 250 plans processed monthly, the KMC anticipates a surge in applications, particularly in key construction areas. To manage this, executive engineers have been alerted, and network infrastructure enhancements and specialized software have been implemented. Workshops will educate professionals on the new system. This digital shift underscores KMC's commitment to modernizing civic services and enhancing citizen convenience.Read more

The National Company Law Tribunal's Kolkata bench has approved a resolution plan of INR 301 crore, which will allow Shri Ram Multicom to purchase Sarga Hotels. The resolution plan was approved with assistance from main creditors, JC Flowers Asset Reconstruction Company and Rare ARC, despite claims from creditors totaling INR 816 crore. Sarga Hotels, a division of Shristi Infrastructure Development Corporation, had to navigate legal obstacles twice before facing insolvency. For JC Flowers ARC and Rare ARC, the recovery is at 39%. This case emphasizes how complex the creditor relationships, court rulings, and bankruptcy procedures are within the IBC framework.Read more

In November 2023, Kolkata's real estate market experienced a notable upswing with 3,656 apartments registered, marking a substantial 20% year-on-year growth compared to the same period in 2022. This positive momentum is attributed to the current stamp duty rebate, incentivizing apartment registrations. Despite an 18% month-on-month decline from October 2023, the cumulative registrations for the year stand at an impressive 39,123 units in Kolkata Metropolitan Area (KMA). The stability in RBI policy rates, consistent home loan rates, and positive macro-economic sentiment are contributing factors, with ongoing new project launches expected to sustain the upward trend in the coming year.Read more

In Kolkata, 18 individuals were arrested for orchestrating an elaborate real estate fraud involving the sale of 14 flats within their criminal network. The fraud scheme included identity theft, forgery, and financial fraud, with the perpetrators not only manipulating property transactions but also securing substantial loans using fabricated documents. The complex operation was exposed when the genuine owner of one flat filed a complaint, leading to a thorough investigation that uncovered a web of deception within the real estate and banking sectors.Read more

Starting in January, the Kolkata Municipal Corporation (KMC) will introduce a streamlined process allowing owners of small plots to commence house construction within a week of submitting building plans. This departure from the previous bureaucratic approach enables plot owners with small plots, not exceeding seven cottahs, to have their plans sanctioned by engaging an architect or licensed building surveyor (LBS) without direct intervention from KMC buildings department officials. The initiative, designed to expedite approvals and enhance transparency, involves online plan submissions, swift sanctions, and subsequent inspections to ensure adherence to the approved plans.Read more

Peerless Hotels is set for a transformative journey, planning to double its room capacity in the next five years. Following the successful upgrade of the Peerless Kolkata property, the company eyes expansion through acquisitions or management contracts. With a focus on internal consolidation first, the 30-year-old company aims to rejuvenate existing properties over a two-year period. Collaborative ventures with partners are on the horizon to broaden market reach. Amid a post-Covid recovery and rebranding all city hotels as Peerless Hotels, the company anticipates a record-breaking fiscal year, with significant revenue growth underlining its success.Read more

Knight Frank's recent analysis reveals a dynamic shift in Kolkata's real estate market. With 35,467 apartments registered in 2023, October stood out with 4,441 registrations, a 2% increase from the previous month. Despite this, there's a notable 35% YoY decline. This is attributed to a robust surge experienced in 2022. The report also reveals a change in the size preferences, with 501-1,000 sq ft units dominating. Micro-market dynamics show the South Zone claiming the top spot, marking a significant shift from last year. The extension of stamp duty rebates and RBI's unchanged repo rate add optimism for future trends.Read more

The Mayor of Kolkata, Firhad Hakim, has recently directed the buildings department to collaborate with architects or licensed building surveyors for expedited approval of building plans on plots not exceeding three cottahs. This move aligns with a new regulation allowing citizens to apply for building sanction online for smaller plots, ensuring quick approval within 15 days if the submitted documents adhere to civic regulations. The initiative aims to address delays and simplify the building plan approval process, emphasizing the Kolkata Municipal Corporation's commitment to supporting citizens in construction endeavours on smaller plots.Read more