Silicon Valley Project Will Be A Gamechanger For Kolkata’s Real Estate
After the launch of Kolkata’s Silicon Valley project in August, aimed at boosting employment in the city, West Bengal Chief Minister Mamata Banerjee has now decided to add another 100 acres to the Special Economic Zone (SEZ) , owing to the overwhelming response from global IT companies. According to reports, about 74 acres of the existing 100 acres of the project are already taken by some of the global IT companies including, Reliance Jio, TCS, Capegemini, Genpact, etc. Also, Infosys will invest Rs 100 crore in the first phase for a 5.25-lakh-foot facility, which will be ready in next 15 months. Being built on lines of the Silicon Valley in the US’ California, the state government is targeting all major IT companies, including Amazon, Fujisoft, etc, to boost the economy.
Existing IT majors to shift to Silicon Valley
The state government is also keen on shifting the existing IT companies in Bantala to Silicon Valley in New Town. Since a number of investors from Uttar Pradesh have shown interest in setting up leather industry in the Bantala area, the government may move operational facilities of IT majors Cognizant and HCL and vacate the space for the new entrants from the leather industry. The West Bengal government is expecting Rs 5,000 crore investment in the Calcutta Leather Complex at Bantala in next five years that would generate employment for over three lakh people.
How Silicon Valley will impact real estate
The investment in this special economic zone is also expected to revive residential realty around the upcoming SEZ, as creation of commercial hubs is also linked to a rise in housing demand. Market experts suggest that the sales will rise correspondingly if the business district does well. While the interim reception for Bengal’s Silicon Valley has been encouraging, city real estate developers are looking to leverage this opportunity of rising demand in a market that has been witnessing a lull for long now. According to Realty Decoded, a quarterly report that analyses nine key property markets of the country, by PropTiger.com, Kolkata recorded 31 per cent increase in launches year-on-year in quarter Jul-Sep 2018. However, the sales remain slow and increased marginally as compared to the previous year. Dominated by mid-range apartment units that cost between Rs 25-50 lakh, Kolkata is well-suited for working professionals.
Residential areas to watch out for The upcoming IT city will boost realty on the New Town-Rajarhat belt, known for its residential real estate development. With modern infrastructure in place, the newly developed township will attract working professionals for renting and buying purpose. The area will soon have smart facilities which include e-health clinics, intelligent power saving streetlights with panic buttons, cycling racks etc. The area also has a 10.5km of Wi-Fi zone with one road going towards Sector V and another one to the airport. The presence of premium educational institutes and international schools, the future for Rajarhat looks bright and happening.