Kolkata's Cooling Real Estate Market: Developers Lose Interest
The fervor surrounding Kolkata's real estate market appears to be waning, particularly among developers who were once vying for prime plots to construct opulent hotels. Companies like Emaar MGF Land Ltd and DLF Ltd, previously eager to secure land in the city, now seem to have retreated.
Scrapped Tender and Poor Response
For the first time, a tender offering a substantial 10-acre plot on Kolkata's western outskirts is being withdrawn due to a singular bidder. The Kolkata Metropolitan Development Authority (KMDA) also extended invitations for bids on two additional properties, but the response has been underwhelming. While KMDA officials had initially indicated interest from developers like Emaar MGF and DLF, these companies ultimately refrained from bidding, even on the desirable 10-acre plot designated for a five-star hotel.
Previous Benchmark and Uncertain Future
Less than a year ago, Life Insurance Corporation of India (LIC) established a new pricing standard by acquiring a five-acre property on Kolkata's eastern periphery for a substantial Rs276.20 crore (Rs55.24 crore per acre). Following the acquisition, LIC declared its intention to erect 50-storey edifices on this plot. Now, a KMDA representative, speaking anonymously, has verified the cancellation of the 10-acre plot tender. However, the fate of the other two plots—measuring five acres and 2.7 acres, respectively—remains uncertain. "The bids aren’t attractive, but the authority hasn't decided yet," the official stated.