Property prices at Garia on the southern fringes of Kolkata have surged after the extension of Metro railway to the region recently. The prices of residential property here have surged by over 30 per cent over the last five months, proving that extension of infrastructure and connectivity is the largest booster for real-estate at any given point of time.

The prices of property in some parts of Kolkata had decreased by up to 20 per cent over the last one year due to fall in demand during the economic downturn. Rajarhat, the newly developing area in the eastern fringes of the city, suffered a steeper fall in prices compared with other regions, particularly on account of lack of connectivity and basic infrastructure.

“The price of residential property has increased by Rs 400-500 per sq.ft over the last six months in Garia after the announcement of inauguration of the extended Metro- rail network,” Mr Abhijit Ghosh, a broker operating in the area, said. The prices have nearly doubled over the last three years to Rs 1,800-2,400 per sq.ft depending upon proximity to the metro station.

The project of extending the metro railways by 8.5 km in Garia by adding five new stations — Kudghat, Bansdroni, Naktala, Garia Bazar and Briji — was taken up 10 years ago.

“It is amazing how prices have skyrocketed in such a short span of time. Three years ago, I had booked a flat near Garia railway station at Rs 975 per sq.ft and I can quote Rs 2,000 per sq.ft for the same flat now,” Mr Shubhash Ray, a local resident, said. The prices are now expected to stabilise, now that the extension of the metro was complete, he added.

Mr Amit Banerjee, who has been looking for resale property with open space in the region, said, “A house built on 3.5 kattah land in the interiors of Garia, devoid of proper road and bus connectivity, is now selling at Rs 20 lakh.”

The property would not have quoted a price of more than Rs 12 lakh except for the metro extension, he pointed out. Land prices in Garia have shot up from Rs 1 lakh per kattah to Rs 6-8 lakh over the last 10 years.

Mrs Shohini Roy, who booked a flat recently in Garia, said, “I seem to have made the transaction just on time. Had I been a couple of months late, the prices would have skyrocketed.” She purchased a flat in a residential complex at Rs 1,980 per sq.ft six months ago. The second phase of the same project was due to be launched at Rs 2,400 per sq.ft, she said. “Even resale property in the area is quoting prices at the same rate as new projects now,” Mrs Roy said.

The area has also witnessed a surge in renting out of space for commercial activity. “I recently rented out the ground floor of my house at a considerably high rate to a private sector bank. I could not have expected the same rate a year ago,” Mr Ananda Guha said. The rent for a two-bed room residential property has increased from Rs 2,000-3,000 a month to Rs 4,000-6,000.

On the discrepancy in development of infrastructure in Rajarhat, as against Garia, Mr Harshvardhan Neotia, Chairman of Ambuja Realty, said, “The difference between the two areas is that Garia is already a densely populated region and a mass transit system has boosted the prospect immediately by connecting residents with the city proper. Our observation in other developing areas of the country such as Gurgaon shows that infrastructure is generally extended only after a certain number of people move in to reside in the region.”

Even in Rajarhat, prices increased after the development of roads in some parts was completed, he pointed out.

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