Calcutta’s Industrial & Logistics sector to record a 5-year high supply at 5.2 million square feet in 2023 and the city is witnessing an inflow of institutional funding from corporates looking to set up their facilities, CBRE South Asia, the international realty consultancy firm said in a report.
The Industrial and Logistics (I&L) sector in Calcutta will record a 5-year high supply in 2023 as a result of the completion of pent-up projects across the city and its peripheries. Total I&L supply in 2023 is likely to touch 5.2 million square feet.
Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said, “the current real estate landscape in the state, particularly in Calcutta, is witnessing a transformative phase where the infusion of quality supply is fueling absorption, propelling the growth trajectory of the state's real estate sector. Our observation of the Industrial & Logistics sector in Calcutta recording a 5-year high supply in 2023 with a notable absorption underscores the sector's resilience and dynamism. The anticipated absorption of 3.5 million sq. ft. in CY 2023 indicates a positive outlook for leasing activities, suggesting a potential surge in demand for commercial spaces.
During the Jan-Sept 23 period total leasing in I&L sector in the city stood at 2.7 mn. sq. ft. The city has close to 10 mn. sq. ft. of Grade A logistics developments in NH-2, NH-6, and Taratala regions.
The I&L growth in the city has been primarily in the micro-markets of NH – 2 & NH – 6 due to strategic positioning along the National Highway, signifying the likelihood of further growth in both industrial and commercial activities, especially in Dankuni and Singur.
Meanwhile, NH - 6 emerges as a multifaceted micro-market, encompassing industrial zones such as Dhulagarh and evolving areas such as Uluberia, reflecting a combination of industrial and residential development. In the Taratala micro-market, locations such as Taratala Road, Hyde Road going upto Maheshtala, there is a distinctive mix of industrial and commercial activities, indicating the potential for growth and progress in these areas.
Meanwhile, the residential market in Calcutta is likely to witness a 5-year high in sales and launch unit-mark in 2023. It is estimated that the projected sales will cross 18,600 units in 2023, whereas new units launched would touch the 17,800 mark, indicating the city’s vibrant real estate market characterized by substantial and robust growth.
The city has witnessed a threefold sales increase, from 4,400 units in 2019 to 14,600 units in 2023 (Jan-Sep). This surge underscores a strong demand for home ownership and positive market sentiment, potentially propelled by economic growth and heightened consumer confidence. Additionally, the new launch climbed to 12,800 units in 2023(Jan-Sep), signaling the sustained demand, thereby capitalizing on the heightened market activity.
Peripheral locations such as Rajarhat, New-Town, Joka, Southern Bypass, EM Bypass, Lake Town and BT Road are the most attractive locations in terms of new launch and sales.
Parvez Khalid, associate executive director, advisory & transaction Services, CBRE, said, “Over the past few years, the state government has been proactive in improving the prevailing business and real estate environment. Moreover, the growth of the construction sector and its Real Estate activity holds the state in good stead to unlock its employment generation potential. The raft of recent infrastructure developments, especially in and around Calcutta, is also expected to be a major contributor to that end. State government has taken several steps to augment the industrial infrastructure by developing new growth centres focusing on specific sectors basis the area’s connectivity, proximity to the market and labour availability.”