Commercial space transactions pick up in Kolkata
KOLKATA: After a lull of almost a year, commercial space deals are finally taking off in Kolkata. The last six months of the current fiscal have seen the maximum number of deals closing in the city with corporates expanding their office in Kolkata or shifting to a grade A property from their present premises.
Major new entrants in the last six months include Uber that has taken up an office in Ballygunge and Syska LED who has rented out an office on Camac Street. “There has been a 7%-8% fall in both furnished and non-furnished commercial space rentals and that has been one of major reasons for corporates who were planning to expand or enter the city to choose this time for the transactions,” said Rahul Baid, head of corporate transactions at Champalall & Co, a Kolkata-based real estate consulting company. Major office expansions include that of Ola and Just Dial. Ola, that had a 6,000 sq ft office in Sector V, expanded their facility in the same premise and now have a 14,000 sq ft of office. Just Dial similarly expanded from their 13,000 sq ft office to 31,000 sq ft in Sector V. Those that shifted to a new office in a grade A building in the last six months included Sony, Canon, Karvy and Religare. All of them shifted to the high streets of Camac Street and Park Steet.
“While the central business district and high streets of Park Street and Camac Street remain crowded with stable rentals between Rs 76 – Rs 95, Sector V still has an unsold commercial space inventory of approximately 2.5 million sq ftavailable at rentals between Rs 51 – Rs53 for furnished facilities and at Rs 40-Rs 42 for unfurnished ones,” said Baid.
A number of automobile majors have come up with new retail outlets that include both rented and owned facilities.Mercedes, for instance, took up space for a new showroom on 15,000 sq ft worth Rs15 crores on EM Bypass, while Honda rented out a property in Sector V follo wed by Maruti Nexa that rented out a 4,000sq ft on Park Street shelling out rentals worth Rs13lakh-Rs15 lakh approximately per month.
According to a report published by Colliers India the city saw about 2.17 million sq ft of new construction in 2015 which is almost double than the previous year. Major completions this year include Godrej Genesis spread over 1.3 million sq ft at Sector V, Unitech Infospace Phase 3A and 3B on 0.50 million sq ft at Rajarhat and Arch Waterfront on 0.27 million sq ft by Arch Group located at Sector V . “In the last quarter companies like IBM and PwC have shown interest in Kolkata,” said Surabhi Arora, senior associate director at Colliers India.