At around 11 in the morning on Monday, the sales team of a well-known real estate firm starts getting calls from prospective buyers eager to close pending deals.
Nearly all of them are local businessmen looking to upgrade to a swankier office in the central business district. However, decision-making appeared to have paused ahead of the poll that ended the 15-year rule of the Trinamool Congress.
“My team and I got many calls from buyers who want to close transactions once it became evident that there will be a change of guard in the state. Clearly, the mood seemed buoyant,” said Mayank Jalan, chairman of Keventer Realty.
The company is building the tallest high-rise office building on Strand Road, overlooking the Hooghly. Commercial office spaces are being sold at a ticket price of ₹5 crore and above per unit at the marquee development in the central business district, where the buyers mentioned above were looking to take space.
Jalan said the overall business sentiment is looking up now that the same political party will rule the Centre and Bengal for the first time in 50 years, aligning priorities. “I feel the real estate segment will look up,” he said.
Not just office space, the change of guard appeared to have prodded Bengalis living outside the state to scout for apartments.
“Many colleagues came to my desk seeking suggestions on where to buy property in Calcutta. While suggesting a few options, I cautioned that I will charge a consultancy fee going forward,” chuckled an executive living in Mumbai and working at the BKC headquarters of an Indian conglomerate.
Sushil Mohta, chairman of Credai West Bengal, said it would probably take 8-10 months for the wider impact to be felt. “We certainly expect the business environment to improve, which in turn will positively impact real estate demand,” said Mohta, the city’s top developer and promoter of Merlin Group.
Industry body Credai is likely to meet the new government after it settles in and present a list of recommendations from the industry. Topping the list will be the repeal of the Urban Land Ceiling Act (ULCA), a restrictive law on land holding that held back institutional participation in the city’s real estate.
The trade body will also propose tweaks in land rules linked to sharecroppers and country and town planning acts for the rapid development of the sector.