Calcutta, Oct. 6: Last year, a realty firm had rewritten the city’s land rate chart. Eighteen months on, EM Bypass is set to sizzle again — with a record-breaking Rs 55 crore an acre.
The Calcutta Municipal Corporation has fixed the reserve price for a five-acre plot in Chandra Garden opposite Science City at Rs 275 crore.
The floor rate is the highest yet in the city, far higher than the Rs 33.6 crore an acre that Delhi-Dubai joint venture company Emaar MGF coughed up for a 6.24-acre plot near ITC Sonar Bangla in April last year.
“We are extremely hopeful that record books will be rewritten in this tender, which will involve a two-tier bidding process, including an open auction, to be conducted by a professional agency,” municipal commissioner Alapan Bandopadhyay said after a pre-bid meeting today.
The bids will be opened on October 16 and the open auction will decide the winner among the top five bidders.
While 57 parties have bought the bid document, it is learnt that Reliance, the Leela Group of Hotels, DLF, Emaar MGF, Bengal Unitech Universal, Paharpur Cooling Towers and Forum Projects are in the fray.
“This intense desire to grab that parcel underlines the trust developers continue to have in the potential of Calcutta. It’s good for the value perception level of the city’s economy,” said Abhijit Das, regional director of international consultants Jones Lang LaSalle Meghraj.
Das felt the “most synergistic product” on that prime plot would be a “Grade A non-IT office building because there will be a severe shortage” of this product in Calcutta two to three years from now as more MNCs and large corporates expand their east operations or enter the market.
Pradeep Sureka, Bengal president of real estate body Credai, agreed that it was an indicator of the city’s buoyancy, but felt the battle would be fought among the outstation majors with deep pockets. “Only a hotel or a shopping mall can realise returns on that scale,” he said.
City-based real estate developer Harsh Neotia, whose company Ambuja Realty bought the bid document, is, however, “slightly perplexed” at the phenomenal appreciation of rates.
“Those keen to establish a pan-India presence will understandably want to be present in prime locations,” he said.
The “challenge”, Neotia added, lies in “sustainable development”.