16

Bengal Peerless is an important player in the real estate sector in West Bengal. It is developing its new project Avidipta II which is one of the the tallest residential projects in Kolkata and the project is situated on the Eastern Metropolitan Bypass, Kolkata.  Ketan Sengupta, CEO, Bengal Peerless, spoke to BE’s Kuntala Sarkar about their ongoing project and the present real estate sector in India. 

Q. What is the current trend of real estate sector in West Bengal?

A. The real estate market was not looking good for the last 2 years or so, but in 2018 there has been a change. In the residential or particularly the affordable segment, there has been a growth around 8-9% or so compared to last year. The commercial sector is not doing well at all in West Bengal. In India cities like Bangalore and Pune things are much better in commercial sector. The recent past has seen radical changes in the Indian Real Estate Sector and Kolkata is no exception. Reports indicate that residential realty in Kolkata is witnessing a turnaround as the first quarter 2018 has seen an increase around 16% in residential sale as compared to the first quarter of 2017. During the lull in the past the affordable housing sector has stood out as an exception. This segment has witnessed a steady growth amidst the policy changes buoyed by Pradhan Mantri Awas Yojana and other initiatives from the Central and State Government.

Apart from the affordable housing sector Kolkata is also becoming a hot spot for luxury housing. The demand for luxury property is particularly high in south Kolkata and east Kolkata in the vicinity of EM Bypass. Upcoming projects in prime locations of south Kolkata have many takers amongst the Bengali, Marwari, and Gujarati communities of Kolkata. Locations in the vicinity of E M Bypass are also highly sought after because of developing infrastructure and improving connectivity as mobility of people to a certain part of the city for a myriad of purposes, be it professional, educational or amusement also plays a determining factor in the placement of real estate development projects.

Q. Recently RBI announced that there will be an increase in home loan interest. How is it likely to affect the buyers and the sales velocity in the residential market?

A. This increase in policy rate will crush the green shoots of recovery in the housing sector, which after suffering a prolonged period of slump has just begun to show early signs of improvement. This hike can impact the velocity of sales as buyers may see this as another reason to postpone their home buying decision.

Q. What are your on-going residential as well as commercial projects?

A. Our Residential Project going on is Avidipta Phase II. It’s the tallest project consisting of 4 towers on EM Bypass. It costs Rs. 8200 per square ft. for HIG.

Q. How do you focus on sustainable architecture to minimise environmental hazards?

A. Sustainable architecture seeks to construct buildings using innovative design, and energy-efficient technology reducing dependence on traditional energy sources.

Avidipta Phase II being a green certified project is committed to highlight Green Initiatives. The project will adhere to all norms to ensure lower energy consumption with intelligent design to maximise daylight and indoor air quality ventilation. The project will have Rain Water Harvesting System to conserve water and use STP to recycle water for gardening, car washing and other general purposes. The project will have use of solar power to provide clean energy. It will have Energy and Water meters to monitor and verify consumption.

The project has waste handling technology. These features will ensure minimum environmental impacts and as a result occupants will enjoy a healthy environment, a considerable amount of energy savings and reduced operational and maintenance cost over the life time of the buildings.

Q. How has GST benefited both builders and buyers in West Bengal?

A. Luxury properties in South and East Kolkata are not just catering to the individuals of the cities but traction is being witnessed from non resident Bengalis across India and abroad as well as multi community buyers across east India. While Demonetisation had a short time impact, the introduction of GST had created a negative impact on the luxury property market. A flat rate of 12% tax for all property under construction has led to a significant increase in the price of flats in the luxury segment. Land cost being the major component of the price of luxury properties the developers can pass on only a small portion of the price gained through input credit on construction cost, as a benefit to the customers. The sluggish market had however forced many developers to absorb the extra cost themselves resulting in reduction of margins. Now my question is from where would they get the input credit? This comes from the production cost and does not come from the land cost. So, when the prices vary and especially for higher price plan, the benefit gets limited.

Q. How many projects are sold on yearly basis on an average?

A. Avidipta Phase II

LIG & MIG – 330 units all sold out through lottery

HIG – Launched 165 units, sold – 105 units.

Q. What are your expansion plans?

A. The Peerless group is firm in its commitment of serving all sections of society by meeting their housing needs. Our primary focus will be in Kolkata but we do not rule out the option of expansion into other cities in the distant future.