Kolkata’s EM Bypass: IT/ITeS growth fuels residential real estate development

[ecis2016.org] The presence of IT/ITeS companies in the vicinity, has fuelled the growth of the residential real estate segment along EM Bypass in Kolkata. We look at the potential of this region and whether it makes sense for home buyers to invest here

Commissioned in the late 1970s, the EM (Eastern Metropolitan) Bypass in Kolkata, was previously a long stretch of road abutting undeveloped land. EM Bypass stretches from Bidhannagar to Kamalgazi and was built to create a high-speed link between the northern and southern fringes and also to reduce the perennial traffic congestion on Gariahat Road.

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EM Bypass connects some of Kolkata’s prominent localities, such as Salt Lake, Maniktala, Park Circus area, Gariahat, Sealdah Railway Station, Jodhpur Park, Selimpur, Lake Gardens, Jadavpur and Garia. EM Bypass also provides excellent connectivity to the distant parts of Kolkata and other cities.

Located close to Kolkata’s CBD (central business district), the EM Bypass region is today witnessing a surge in housing demand from thousands of employees working in the IT/ITeS companies, industries and public offices in and around it. In addition to the continuous physical infrastructure upgrades, such as the ongoing metro and BRTS network, EM Bypass is adequately endowed with social infrastructure. There are a number of retail malls/shopping complexes, high-end hotels and restaurants, hospitals and educational institutions, on both sides of the Bypass.

From a larger perspective, the city fringes are now grabbing the attention of buyers focused on residential properties, with world-class urban amenities.

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Connectivity to EM Bypass

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Road: EM Bypass constitutes of around 10 connecting roads that link the Bypass to various parts of Kolkata. The presence of various flyovers/overpasses facilitate free flow of traffic along it.

Rail and metro: The nearest railway station to EM Bypass is Sealdah (located less than 10 kms away). A 29-km metro corridor, running between Garia and Netaji Subhash Chandra Bose International Airport, via EM Bypass, Salt Lake and Rajarhat, is under construction and is expected to be commissioned by June 2019.

Air: EM Bypass provides seamless connectivity to Netaji Subhash Chandra Bose International Airport, located at a distance of less than 20 kms away.

Over the last five years, EM Bypass has witnessed the addition of about 4,900 residential units. Around 63 per cent of the supply was added in 2013. The micro-market has added 63 per cent of the supply in the Rs 80 lakhs to Rs 1.5 crores budget range over the past two years, indicating the availability of several luxury properties in the region. Around 1,400 units were unsold, as of Q4 2017.

Check out properties for sale in EM Bypass

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Only around seven per cent of the units (approximately 350 units) are ready-to-move-in, indicating limited options available to home buyers in this category. Around 1,900 units of fresh inventory are set to enter the residential market in less than one year and 2,700 units are expected to take more than one year to be completed.

The recent regulatory reforms, amidst significant unsold inventory, have slowed down construction activity to a considerable extent.

Property prices in EM Bypass

Residential property prices in EM Bypass have been increasing in the last two years, with the average price, as of Q4 2017, being Rs 6,400 per sq ft. Prices appreciated by 11 per cent during the period 2015-2017. The booming commercial and retail developments, along with considerable demand from both, end-users and investors, contributed to this substantial increase in the average prices in the region.

Real estate potential in EM Bypass

With IT/ITeS and commercial sectors flourishing in and around EM Bypass, residential real estate developments have a lot of growth potential. Additional factors, such as smooth connectivity with congestion-free roads, abundant land availability and constantly improving infrastructure, are working in EM Bypass’ favour, ensuring its evolution into one of the sought-after micro markets of Kolkata.

(The writer is city lead – Kolkata, ANAROCK Property Consultants)

Source: https://ecis2016.org/.
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Source: https://ecis2016.org
Category: Lifestyle