Property prices zoom up to about Rs 2,100 per sq ft from Rs 1,000 about two-three years back
About two years back, Asim Ray bought a two-bedroom flat in Garia for about Rs 1,050 per square feet.
Ray has been planning to buy a second property in Garia, but to his surprise, the prices in the area have doubled in the last two years, when elsewhere they have plummeted to that of the 2007 levels, thanks to the economic slowdown.
While it took 10 years for the Metro Rail to stagger from Tollygunge to Garia, it took less than six months for property prices in the area to zoom up to about Rs 2,100 per square feet from Rs 1,000 a square feet about two-three years back.
Property developers are of the view that few had anticipated that Metro Railway work will be put on fast track, after years of uncertainty surrounding land acquisition in the areas.
According to Jitendra Khaitan of Pioneer Properties, property prices have escalated by almost 5-10 per cent in areas like Kudghat, Bansdroni, Naktala, Garia, in the last three months. “One can expect property prices to rise by another 10 per cent in the next few months,” said Khaitan.
In fact property prices had started increasing in the areas soon after the Metro rail extension was announced till Garia. However, when the project did not proceed much even after four-five years of inception of the construction work in 1999, property prices once again cooled off.
Property developers are also rushing to purchase land in the Kudghat, Bansdroni, Naktala and Garia areas.
According to Santosh Rungta, president, Confederation of Real Estate Developer’s Associations of India (CREDAI), substantial amount of vacant land is available in the areas where infrastructure and transport have been major hindrances.
“I don't think that property prices will increase in Garia and adjoining areas, as there will be ample supply of housing units, particularly LIG and MIG ones in the areas. Developers will be purchasing land in the areas, which so far which have been lying vacant,” said Rungta, who is also planning to but land in Garia for developing MIG and LIG housing complexes.
The total length of the Metro rail project is 8.5 km, covering five stations — Kudghat, Bansdroni, Naktala, Garia Bazar and Briji.
“Property prices have started looking up in the Garia and adjoining areas, and sales has also picked up. Those who were indecisive have now firmed up to buy houses in the area,” said Pradeep Chopra of P S Group, which is also planning to launch projects in Sonarpur and Narendrapur areas. The extension project had started in 1999 and its estimated cost was Rs 1,032 crore, with the state government undertaking 33 per cent of the cost.
