Knight Frank Project Report

Micro Market Research Of Commercial Office Market in Kolkata

Acknowledgement

My Summer Internship project on “Micro Market Research on Commercial Office space Market in Kolkata” in KNIGHT FRANK (INDIA) PVT. LTD has been a fruit of hard work and support of many Individuals. No project can blossom from a single persons mind without proper guidance, assistance and inspirations from various quarters. My project was given its present shape by assistance of many people whom I am greatly indebted to. It is indeed of great moment to pleasure to express my senses of per found gratitude & indebtness to all the people who have been instrumental in making my training a rich experience.

I would like to take the opportunity to thank all the individuals who had been so easy to let us understand what we needed from time to time for completion of this Project. First of all I would like to thank my institute, Eastern Institute for Integrated Learning in Management (Eiilm), Dr. R.P. Banerjee (Director, Eiilm) for giving me the opportunity to work with Knight Frank (India) Pvt. Limited.

My sincere gratitude to Mr. Samantak Das (National Head, Research, Knight Frank, India), Ms. Sangeeta Sharma (Senior Manager, Research, Knight Frank, India), Mr. Raj Louis (Chief Human Resources Officer, Knight Frank, India), Mr. Amit Talwar (Manager, Knight Frank, India).I am also grateful to my Internal guide Prof. Sambit Banik (Faculty, Eiilm, Kolkata) and Sudakshina Dasgupta, (Manager, Corporate Relations & Placement, EIILM) for his continuous effort during my project work.

My sincere thanks to all other who are associated with the project directly or indirectly for providing me the excellent guidance, encouragement, inspiration during the project, without who’s helping hand and guidance it would not been possible for me to complete this project.

My association with this company over the past two months has been an extremely rewarding experience and I feel proud and privileged to have been a part of this organization.

Page | 2


DECLARATION

I, Saurav Goswami a MBA 2nd Semester student of Eastern Institute for Integrated Learning in Management, Enrolment no. EIILM/PGP/2008-10/6H053, hereby declare that i did my summer internship project from Knight Frank (India) Pvt. Ltd for 8 weeks on the topic “The Micro Market Research of Commercial Office Market in Kolkata”.

This project is being submitted as the partial fulfillment for the award of MBA degree.

The project is the original research work done under the guidance of Sangeeta Sharma, Senior manager of Knight Frank(I) Pvt. Ltd (External guide), Prof. Sambit Banik (Internal guide), the faculty member of EIILM.

Date: 15th July 2009 Saurav Goswami

Place: Kolkata

Page | 3


CONTENTS

SECTION-I Page No.

1. Introduction 062. Executive Summary 073. Knight Frank (India) ltd. –Company Profile 08

SECTION- II

1. Objective of the study 102. Methodology 113. Limitation of Research 12

SECTION- III

1. Indian Real Estate Sector Synopsis 14 to 152. City Overview of Kolkata 163. Overview of the Commercial office Market in Kolkata 17 to 18

SECTION- IV

1. Analysis of Stock and Supply.i. Rashbehari Connector 20 to 27ii. Park Circus to Gariahat 28 to 38iii. E.M. Bypass (Ruby Park) 39 to 46iv. Bantala SEZ 47 to 49

SECTION- V

1. SWOT Analysis 512. Recommendation 523. Conclusion 534. Bibliography 54

Page | 4


SECTION –I

1. Introduction2. Executive summary3. Knight Frank (India) Ltd.- Company Profile

Page | 5


1. INTRODUCTION:

The rapidly growing real estate market in India is moving towards maturity with increasing participation from large local and international players, rising investor interest and a market-friendly approach. The Indian commercial office space market is huge and many Indian companies and foreign companies expanding their arms in India to capitalize on the business opportunities in a booming economy; the demand for commercial space (primarily spurred by industries such as IT and IT-enabled services, retail and hospitality) has also hit the roof. Commercial property rates at prime spaces and real estate deals are reaching record highs. Kolkata being a metro city of India not being an exception and also had experienced a huge demand in the office market space from many local and foreign companies.

Last year the heat of soaring inflation and US economic crisis couldn’t burn into the real estate market in Kolkata. Developers and experts say the prices here have here have increased by 7-10 per percent over the last year, unlike other metros and cities. The city has managed this because prices here never reached unrealistic proportions. Kolkata’s real-estate market is also relatively stabilized. The rental value for office spaces are going up like previous years that includes the central business district (CBD) by virtue of non-availability of Grade-A offices are rise in demand. Current rentals at the CBD are around 100-130 per sq.ft per month.

Although Kolkata being a slow starter in the real estate sector compared to other big cities in India has started well as many big companies like Tata Consultancy Services, Cognizant Technologies, PWC, ITC InfoTech, HSBC Electronic Data Processing India (HDPI), Computer Associates, Siemens, IBM, Tech Mahindra, HCL, Infosys, Webel and several other companies have already started or have plans to start their projects in Kolkata. Kolkata is amongst the fastest growing IT centres within India and has witnessed approximately 70% growth in the past few years. This is almost twice the national average.

The newly developed Rajarhat area is estimated to dominate the office market in Kolkata in the next coming years, till now Salt Lake sector V and Park Street is considered as the prominence office market in Kolkata. Besides this the development of number of SEZ projects in this micro market by the leading national developers like DLF, Unitech, Riverside, PS Group have setup large scale SEZ in Rajarhat, Batanagar,Bantala. This projects in around 97% of the upcoming supply in Kolkata is concentrated in suburban and peripheral locations of the city. Rajarhat comprises approximately 74% of the upcoming supply.

Page | 6


2. EXECUTIVE SUMMARY

Kolkata, the capital of West Bengal and the biggest business hub of Eastern India, has

been one of the growing cities of India in terms of Real Estate Market.

As compared to other Indian metros, Kolkata offers cheap cost of living which serves

as its biggest attraction. Despite such a high growth, the prices of essentials in the

city are much lower which attracts many MNC’s to come here to setup their

business.

Dalhousie Square (BBD Bag), Park Street, Chowringhee Road, Camac Street,

Rashbehari Connector and some parts of Park Circus Connector are preferred

commercial destinations.

Until recently the emergence of the IT/ ITeS business sector has results in major

development in areas of Sector V (salt lake), Rajarhat, E.M. Byepass and Bantala SEZ.

The objective of the study is to analyze the commercial office market in Rashbehari

Connector, Park Circus Connector, Ruby Circle (E.M. Bypass) and Bantala SEZ.

The aim of this study is to find out the various aspects which work against and for a

locality doing well commercially.

The study looks upon connectivity, major occupant’s types and sectors, rent trends

and type of stock and supply existing in the area.

The methodology of the study followed is primary data collection and qualitative

data analysis.

For the study the sample building is taken from each location.

Page | 7


3. COMPANY PROFILE:

Knight Frank is a century old consultancy firm was founded on 1896 by Knight Frank & Rutley as a valuations, surveying and auctions business. Today it is one of the leading Real Estate consultancy firm in the world. It has worldwide presence over 36 countries on 6 continents with more than 165 Offices with 5,300 locally-based professional staff handling around $41 billion worth of real estate annually.

Knight Frank India Pvt Ltd is a part of the Knight Frank LLP Global Network. Knight Frank India Pvt Ltd provides a comprehensive range of real estate related services covering residential, commercial, land, investments, hotels & leisure, valuation, advisory services and facilities management.

The above services are provided in India through its offices in Mumbai, Gurgaon (Delhi), Bangalore, Pune, Hyderabad, Chennai & Chandigarh.

Knight Frank India Pvt Ltd provides clients with expert advice on all real estate related matters including to clients who want to own, occupy, invest or sell properties.

COMPANY VISION

Knight Frank's objective is to be the world's leading property adviser, respected and trusted for its ability to create value for owners, developers and users of residential and commercial property, wherever they are.

Page | 8


SECTION –II

1. Objective of the Study2. Methodology3. Limitation of the Research

Page | 9


1. OBJECTIVE OF THE STUDY:

Primary Objective

To analyze the Commercial Office Building space in Kolkata.

Analysis of the area where the stock and supply is situated.

Analysis of the location in terms of connectivity, Occupants demographics & major

occupant.

To analyze the rent trend, security deposit, property tax and other outgoing of the

buildings.

Analysis of total built up area, measureable carpet area, total chargeable area,

number of Units in each building.

Secondary Objective

To analyze the building profile.

Analysis of various Amenities provided to the tenants by buildings.

To find out the vacancy available in the buildings.

To find out the opportunities available for Knight Frank.

Page | 10


2. METHODOLOGY

To conduct a successful research the selection of method is very important. There are

different types of procedure which can be followed. For my project I have followed the

random sampling method.

The following are details of the methodology followed:

Sample Technique: Random Sampling

Sample Frame: Data collected by interviewing the tenants and administrative office of the building.

Data collection tools: Questionnaire provided by Knight Frank (India) Pvt. Ltd

Sample unit: From various stock and supply buildings.

Sample Size:80 Units

Sample Time: The survey was conducted for 8 weeks (15th May to 15th July)

Sample Area: Rashbehari Connector, Park Circus to Gariahat, Ruby Park and Bantala SEZ

Sources of Data:

a. Primary sources: i. Data collected from the buildings.ii. By interviewing the building’s administrative officeb. Secondary Sources:i. From various magazines.ii. By visiting and interviewing different developer and promotersiii. From various websites.

Page | 11


3. LIMITATION OF THE RESEARCH

Every Project has some Scope and limitations. The problem or limitations, which

faced in doing this project ,are as follows.

Time Span i.e. 8 weeks period was really not enough.

Personal Interaction with the project manager was quite difficult, as they are busy in

their work.

People available for interview are not willing to disclose the exact details.

Many people do not have proper knowledge regarding the area of the building.

Lack of access to confidential data which was quite normal.

I was lucky not to face too many or some major limitation during this training period.

Page | 12


SECTION –III

1. Indian Real Estate Sector Synopsis2. City Overview of Kolkata3. Overview of the Commercial office Market in Kolkata

Page | 13


1. SYNOPSIS OF INDIAN COMMERCIAL REAL ESTATE SECTOR:

Over the past decade, India has emerged as a leader in the global economy. India is reckoned as one of the fastest growing economies of the world in terms of real estate market. Owing to its inherent advantages of a large consumer base, raw material resources, world class manufacturing capabilities, competitively priced talent base, a comprehensive legal & tax system and a strong operating financial system has become a preferred investment and business destination.

India has displaced US as the second-most favored destination for FDI in the world. As the investment scenario in India changes, India which has attracted more than three times foreign investment at US$ 7.96 billion during the first half of 2005-06 fiscal, as against US$ 2.38 billion during the corresponding period of 2004-05, making India amongst the "dominant host countries" for FDI in Asia and the Pacific (APAC).

The positive outlook of Indian government is the key factor behind the sudden rise of the Indian Real Estate sector - the second largest employer after agriculture in India. This budding sector is today witnessing development in all area such as - residential, retail and commercial in metros of India such as Mumbai, Delhi & NCR, Kolkata and Chennai. Easier access to bank loans and higher earnings are some of the pivotal reasons behind the sudden jump in Indian real estate.

Market analysis pegs returns from realty in India at an average of 14% annually with a tremendous upsurge in commercial real estate on account of the Indian BPO boom. Lease rentals have been picking up steadily and there is a gaping demand for quality infrastructure. A significant demand is also likely to be generated as the outsourcing boom moves into the manufacturing sector. Further, the housing sector has been growing at an average of 34% annually, while the hospitality industry witnessed a growth of 10-15% last year. Apart from the huge demand, India also scores on the construction front. A Mckinsey report reveals that the average profit from construction in India is 18%, which is double the profitability for a construction project undertaken in the US

However in the second quarter of 2008 witnessed stable rental values across major micro markets in the major cities with some CBD and off – CBD locations witnessing rental hikes in the range of 3 – 5 percent over the last quarter. Some peripheral locations in NCR and Chennai also saw a correction in rental values largely due to excessive supply as well as deferred development plans of various proposed projects. Pune was however an exception to the stable rentals where all micro markets witnessed a rise in rental values in the range of 2% – 7% over the last quarter. This was largely due to lack of supply of Grade A commercial in CBD falling short of demand while in the peripheral locations demand driven by the IT/ITeS sector led to an increase of rental values. Malad in Mumbai recorded the highest quarter –on – quarter rental appreciation at 11% due to lack of supply of Grade A properties and with most of the new supply already pre-committed. Dalhousie (off-CBD, Kolkata), too witnessed high rental increase of 10%, due to high demand and lack of redevelopment potential or fresh supply.

Page | 14


Office space rentals in India are expected to fall up to 20% in the next three quarters, with key cities like Delhi and Mumbai slated to witness a sharp decline of 50%. According to the global real estate consultant Jones Lang LaSalle (JLL), the decline in property prices in India is expected to continue through the year with office rentals expected to fall by 15-20%, as the slowdown-hit realty sector is likely to see a recovery only in the second half of 2010.

According to real estate consultant JLL report on global market perspective, the largest decline in rentals is expected in Delhi and Mumbai, expected to halve its peak. The consultant further said the office rentals in Chennai, Kolkata, Hyderabad and Pune are expected to decline between 30% and 40% from their peak during the next three quarters, while the same in Bangalore will fall 15-20% from its peak. On the current economic scenario, the report said the recent gains in the equity market propelled optimism in the economy and if it continues, a recovery is expected by early 2010.

Page | 15


2. KOLKATA: AN OVERVIEW:

Kolkata, erstwhile Calcutta, the capital of West Bengal and a metro city of India. It is the main business, commercial and financial hub of eastern India and the northeastern states. The city is situated in the Eastern part of India on the bank of river Ganges and is the world’s 8th largest Metropolitan area. The city is often referred as “The City of Joy “which signifies the undying spirit of human endurance. A city with one foot in its 300 year old heritage and a richly mixed culture, and the other forward to grab the best of today, Kolkata tends to be a city that delights – with stunning glimpses into a rich culture, history, with amazing oasis of natural beauty in the heart of the city.

Kolkata city had a population of 4,580,544 of which 55% of the population are Bengali with an extended metropolitan population of over 14 million, making it the third-largest urban agglomeration in India.

The Surface transport system of the city is connected with Bus, Train, Tram, Underground rail (metro), Taxis, & Auto rickshaw. While the air transport is connected through a International airport.It also had water transport system

Kolkata is home to many industrial units operated by large Indian corporations with products ranging from electronics to jute. Large companies headquartered in Kolkata include Dell, IBM, HSBC, ITC Limited, Bata India, Birla Corporation, Coal India Limited, Damodar Valley Corporation, United Bank of India, UCO Bank, Allahabad Bank and Vijaya Bank.

The city has a large unskilled and semi-skilled labour population, along with other blue-collar and knowledge workers. Kolkata's economic revival was led largely by IT services,with the IT sector growing at 70% yearly — twice that of the national average. In recentYears there has been a surge of investments in the housing and commercial infrastructure sector with several new projects coming up in the city.

Page | 16


3. OVERVIEW OF THE COMMERCIAL OFFICE MARKET IN KOLKATA

Kolkata is gradually undergoing a transformation which will have a long term impact on the city and its future growth. Earlier, Dalhousie Square (BBD Bag) gave way to Park Street, Chowringhee Road and Camac Street, as preferred commercial destinations and we may see a similar change in the medium to long term. The catalyst to this change is the emergence of the IT/ ITeS business sector and the resultant developments in Rajarhat, Bantala and Batanagar.

The CBD in Kolkata has been a preferred corporate destination but now there is a slowdown in demand. With increasing real estate activity, secondary micro-markets and peripheral markets which offer good connectivity and infrastructure, are coming into prominence. Also, the high rentals which are currently being quoted in the CBD locations render it unviable potential occupiers. Moreover the vacancy level in this area are negligible.

The secondary micro-market, comprising EM bypass, Kasba-Gariahat and Sarat Bose road covering prime residential locations, has over the past few years been converted into a major commercial hub after the CBD. These locations fall within the definitive city limits and have good connectivity on account of the Metro Rail service and extended bus routes. Also, the rentals are much less as compared to those of similar facilities in the CBD. With a number of developers active in the Kolkata real estate market, there is ample supply coming up, particularly in the E.M. Bypass area. Peripheral Markets of Salt Lake and Rajarhat constitute extended Kolkata. With the development authorities focusing on expanding its circumference with a circular road and rail network, these locations are fast becoming the choice of occupiers. This is further supplemented by the availability of quality space at lower costs, good manpower catchments and upcoming social infrastructure. As such Salt Lake and Rajarhat have been the sought after destination for IT & ITES companies.

The township of New Town, Rajarhat, is heading towards completion and space has been allocated for the new CBD within the township. With the development of New Town, the government has focused on providing the necessary infrastructure for the smooth functioning of the IT/ITES companies.

Page | 17


The Average Rentals Value of Commercial Office spaces in Kolkata

AreaAverage Rent

(RS.)AJC Bose Road 140Bantala 45Camac Street 150EM Bypass 65Gariahat Road 85Park Street 140Rajarhat 50Rashbehari Connetor 60Saltlake 70Theatre Road 150Topsia 60Ultadanga 90

AJC Bose Road

Bantal

a

Camac

Stree

t

EM Byp

ass

Gariah

at Road

Park St

reet

Rajarh

at

Rashbeh

ari Conneto

r

Saltla

ke

Thea

tre Road

Topsia

Ultadan

ga0

20406080

100120140160

Rent (RS.)

Rent (RS.)

Page | 18


SECTION –IV

1. Analysis of Stock and Supplyi. Rashbehari Connectorii. Park Circus to Gariahatiii. E.M. Bypass (Ruby Park)iv. Bantala SEZ

Page | 19


1. ANALYSIS OF STOCK AND SUPPLY

Area Wise Analysis: i. Rashbehari Connector Rashbehari connector Connects Rashbehari Avenue with E.M. bye pass. Rashbehari

avenue is one of the most prestigious and important avenues of Kolkata major portion of this road is often commonly referred to as Gariahat, the prime shopping and aristocratic residential neighbourhood of south Kolkata. Rashbehari Avenue falls in the posh residential neighbourhood of Ballygunge.

Due to non-availability of office space in areas like Park Street & Dalhousie, most company prefer to this area for their office.

Tenant profile- Banks, Financial Institutions, shopping malls and Government Bodies.

Average rental value is ranging between Rs. 40 to Rs. 65 per Sq.ft. per month.

Average Outright sold Value ranging between Rs. 3500- Rs.7000 per sq ft.

Location Analysis:

Page | 20


Connectivity

Rashbehari connector is well connected to the major stations and locations. The buses, taxis and auto rickshaw are frequent to Ballygunge,Howrah, Sealdah (railway

station), Airport, Salt lake sector. V, Dalhousie and esplanade. The roadways are wide and well

maintained with flyovers to cut the time consumption and also there is cab service to minimize the time exhaust.

Ballygunge railway station is connected through Bijon setu.

Also nearby metro station is few minutes’ drive away.

Airport is connected through E.M. Bypass.

Demographics: Sector wise

Page | 21

Sectors No. Units

Banks 5

IT 1

Finance 1

Others 2


Banking 59%

IT 11%

Finance 11%

Others 19%

Major occupants: Siemens , Eureka Forbes, Suryamukhi Finance, Bank of Baroda, State Bank of India, State Bank of Indore, Vijaya Bank, United Bank of India.

Area Study

Rashbehari Connector the growing business destination for Kolkata. The entire lands on which the commercial offices are built are mostly on lease rent

basis. The structure here typically have 5-7 floor with majority of buildings are resident

cum commercial project. Multiple tenanted buildings with multiple occupiers. Most of them are main road facing structure and thus commands high rentals than

others. The buildings here are mostly resident cum commercial structure hence giving higher

efficiency in terms of floor plate. As the area is resident cum commercial there is shortage for parking place and low

amount of traffic. The corporate offices are shifting here because of cheaper rent with better structure

compared to office spaces in CBD areas. The transport system and infrastructure is good, which attracts corporate to setup

their business here. Many vacant lands and office spaces are available in Rashbehari connector, which

will attracts more and more companies to setup their offices.

Rashbehari Connector: Micro Market

Page | 22


DIGITAL MAPING

Page | 23


Page | 24


Stock Analysis:

1. Building Name: NilimaAddress: Rashbehari Connector, 220, Rajdanga Road, Kolkata- 700 107

Developer: Gitanjoli Contruction

Building specifics:

Structure: G+3 Total Chargeable area:2050 sq.ft Efficiency: 95% Type of Project: Residential+Commercial

Building Demographics

Page | 25


Banking75%

Vacancy25%

Demographics

Overview:

The Building is a residential cum commercial with a chargeable area of 2800 sq ft. It is resident cum commercial building with 4 floors. Provides basic amenities like security, water supply. Maintenance charge is Rs. 2 per sq ft . The agreement is leased basis. The asking rent is Rs. 42 per sq ft. The prices of the units are in a range of Rs.3000 to Rs. 5500 per sq ft.

Opportunity for Knight Frank:

The building has 25% vacancy, so there is an opportunity for Knight Frank.

SUPPLY ANALYSIS

Page | 26


Project Name: Acropolis

Address: Rash Behari Connector, Kolkata- 107.

Developer: Merlin Group

Building specifics:

Structure: 3B+G+17 Total Chargeable area: 62183 sq ft. Floor Plate: 2962 sq ft. Type of Project: Commercial Office+ Retail Mall

Overview:

Page | 27


The Building is a retail mall cum commercial office complex with a chargeable area of 62183 sq ft.

It is commercial building specially built for Office complex of international standards apartment for IT, ITES and Corporate houses comprises of 18 floors.

This project is a PPP (Private-Public Partnership) venture between Kolkata Metropolitan Development Authority (KMDA) and Merlin Projects.

The project is expected to be completed in the 2nd quarter of 2010. IT equipped office space offering a perfect ambience of present day workplace. It provides parking provision of about 750cars on pay and use basis. It has a provision of power supply with 100% power backup. Broad band connectivity through optical fibred cabling and Wi fi facility providing

VPN, IPCL, MCL, Landline telephone, ISDN and GSM services under one roof Provides amenities like capsule clear glass lift, Web enabled fire detection system,

double layered sprinkler & smoke detectors, security, car parking, and water supply. The agreement will be on lease basis.


The project is the biggest projects with specially built for office complex with international standards. So after its completion, there will a good opportunity for Knight Frank.

Page | 28


Area Wise Analysis

ii. Park Circus to Gariahat The area connects park circus with Gariahat through Syed Amir Ali Avenue ,Ashutosh

Chowdhury Road and Gariahat Road. It is one of the posh residential localities of Kolkata.

As the area is very locality many Govt. and Private Banks have opened their branches here.

The area is very near to Park Street and A.J.C. Bose Road which is considered the commercial office market of Kolkata. So it is considered being the extension of Park Street.


Tenant profile- Banks, Financial Institutions, shopping malls and Government Bodies.

The rental value is ranging between Rs. 45 to Rs. 66 per Sq.ft. per month.


Location AnalysisPage | 29


Connectivity

The area between Park to Gariahat is one of the posh locality in Kolkata. This road is one of the busiest roads in Kolkata. Rashbehari connector is well connected to the major stations and locations. The buses, taxis and auto rickshaw are at frequent interval to Ballygunge,Howrah,

Sealdah (railway station), Airport, Salt lake sector. V, Dalhousie and esplanade. The roadways are wide and well maintained with flyovers to cut the time

consumption and also there is cab service to minimize the time exhaust. Ballygunge railway station is connected through Bijon setu. Also nearby metro station is few minutes’ drive away. Airport is connected through Park Circus connector.

Major Occupants: Dunlop, Hdfc Bank, Kotak Mahindra Bank, ICICI Bank, Red FM,SBI, Reliance World, Metlife Insurance, Sony India, J.J. Exporter Ltd, Oriental Bank, Etc.

Page | 30


Demographics: Sector wise

Banking18% Construction

3%

Consultancy3%

Consumer elec-tronics

1%Engineering10%

Entertainment1%

Export9%

Financial4%

Healthcare7%

Industries3%

Insurance6%

IT1%

Manufacturing7%

others13%

Service1%

Telecom1%

Govt7%

Demographics

Page | 31

SectorNo. of Units

Banking 12

Construction 2

Consultancy 2Consumer electronics 1

Engineering 7

Entertainment 1

Export 6

Financial 3

Healthcare 5

Industries 2

Insurance 4

IT 1

Manufacturing 5

others 9

Service 1

Telecom 1

Government 5

Total Units 67


Area Study:

Park Circus area is developing as a business destination for Kolkata. It is very near to the CBD area of Kolkata, which gave it a advantage over other areas

as the availability of office space in the CBD area is very low that too very costly. Here the commercial offices are mostly on lease rent basis. The structure here typically have 6-10 floor with majority of buildings are resident

cum commercial project. Multiple tenanted buildings with multiple occupiers in each floor. Most of them are main road facing structure and thus commands high rentals than

others. The buildings here are mostly resident cum commercial structure hence giving higher

efficiency in terms of floor plate. As the area is resident cum commercial there is ample space for parking and low

amount of traffic. In this area few Government buildings are also exists. The corporate offices are shifting here because of cheaper rent with better structure

compared to office spaces in CBD areas. The transport system and infrastructure is good, which attracts corporate to setup

their business here. New office spaces are available in this area, which will attracts more and more

companies to setup their offices.

Page | 32


Park Circus to Gariahat: Micro Market

Page | 33


STOCK ANALYSIS

1. Building Name: KCI PLAZA

Address: 23C, Ashutosh Choudhuri Avenue,Gariahat Road, Kol-700 019

Developer: Singhal Contruction Co.

Building specifics:

Structure: G+6 Total Chargeable area: 31500 sq.ft Efficiency: 89% Type of Project: Commercial

Page | 34


DIGITAL MAPING

Page | 35



.

Banking6% Construction

6%Consumer electronics

6%

Engineering25%

Export25%

Financial19%

Manufacturing6%

others6%

Demographics

Major Occupants: Oriental Bank of Commerce, Sony India ltd, R.K. Industries, J.J. Exporters, Sadvik Asia Ltd, Cuprum Bargodia Ltd, Minex Metfalurgical Co. Ltd, Belvedere Gardens Ltd.

Overview:

The Building is a commercial type project with a chargeable area of 31500 sq ft. The structure of the building is G+6 floors. Provides basic amenities like lift, security, water supply. It has a 50 car parking space. Maintenance charge is included in rent. The agreement is leased basis. The asking rent is between Rs.54 to Rs. 66 per sq ft. The prices of the units are in a range of Rs.6000 to Rs. 8500 per sq ft.


The building fully occupied, so there is no opportunity for Knight Frank.

Page | 36

SectorsNo. of Units

Banking 1Construction 1Consumer electronics 1Engineering 4Export 4Financial 3Manufacturing 1others 1


2. Building Name: BBDO

Address: 9, Syed Amir Ali Avenue, Kolkata-700 017

Building Specifics: Structure: G+4 Total Chargeable area: 6350 sq.ft Efficiency: 91% Floor Plate: 1060 Sq ft. Type of Project: Residential cum Commercial

Page | 37



Banking14%

BPO14%

Construction14%Shipping

14%

Government Of-fice43%

Demographics

Major Occupants: State Bank of India, Exploretech, Hindusthan Construction, Megastar International, Government office.

Overview:

The Building is a commercial cum residential type project with a chargeable area of 6350 sq ft.

The building is old construction. The structure of the building is G+4 floors. Provides basic amenities like lift, water supply. Maintenance charge is included in rent. The agreement is leased basis. The asking rent is ranging between Rs. 55 to Rs. 60 per sq ft. The prices of the units are in a range of Rs.6000 to Rs. 6500 per sq ft. No vacancy available in this building.


The building fully occupied, so there is no opportunity for Knight Frank.

Page | 38

SectorNo. of Units

Banking 1BPO 1Construction 1Shipping 1Government Office 3


DIGITAL MAPING

Building: BBDO

Page | 39


AREA WISE ANALYSIS

iii. E.M. Bypass (Ruby Park) E.M. bypass is considers as one of the economic lifelines of Kolkata. Eastern Metropolitan Bypass (E.M. Bypass) is the

major road which connects the northern and southern part of Kolkata.

The roads are about 21 kms starts from Ultadanga in the north and ends to Garia to the south.

It connects with Rash Behari Avenue near Ruby Hospitals.

The area near ruby hospital is one of the commercial hubs of Kolkata.

Many new companies have already started their projects here.


Tenant profile- Government bodies, Financial Institution, Shopping malls, Automobile Company, Real estate Developers, etc.

The average rentals are ranging between Rs. 60 to Rs. 70 per sq ft.


Page | 40


LOCATION ANALYSIS

Connectivity

E.M. Bypass is well connected to the major stations and locations. The buses and taxis are frequent to Ballygunge,Howrah, Sealdah (railway station),

Airport, Salt lake sector. V, Dalhousie, Kalighat metro, ITC Sonar and Esplanade. The roadways are wide and well maintained with flyovers to cut the time

consumption and also there is cab service to minimize the time exhaust. The Airport is connected though E.M. Bypass.

Demographics: Sector Wise

.

Insurance10%

Consultancy10%

Banking10%

Automobile30%

FMCG20%

Contruction10%

Industry10%

Demographics

Area Study:

E.M. Bypass (Ruby) is one of the growing commercial destinations in Kolkata. Here commercial offices are owned and lease rent basis. Ruby area is very well connected to the major commercial destination of Kolkata, so

the demand for office spaces is there. The structure here typically 6-8 floor with a mix of share of commercial and

Government buildings. Most of the commercial buildings here are multiple tenanted. Many new commercial projects constructions are going on presently. New office spaces are available with majority of the spaces have already had a

booking.

Page | 41

SectorsNo. of Units

Insurance 1Consultancy 1Banking 1Automobile 3FMCG 2Construction 1Industry 1


E.M. Bypass (Ruby): Micro Market

Page | 42


DIGITAL MAPING

Page | 43


STOCK ANALYSIS

Building Name: WBVHAAddress: Anandapur (near Ruby Hospital), E.M. bypass, Kolkata.

Developer: Life line Enterprise

Building Specifics: Structure: G+4 Total Chargeable area: 6000 sq.ft Efficiency: 75% Floor Plate: 1200 Sq ft. Type of Project: Commercial

Page | 44



.

Insurance60%

Vacancy40%

Demographics

Major Occupants: Aviva Life Insurance Company.

Overview:

The Building is a commercial type project with a chargeable area of 6000 sq ft. The structure of the building is G+4 floors. Provides basic amenities like lift, security, water supply. It has only 5 car parking space. Maintenance charge is included in rent. The agreement is leased basis. The asking rent is Rs. 70 per sq ft. The prices of the units are in a range of Rs.6000 to Rs. 6500 per sq ft. Presently 3 floors of the building are vacant, ie, approximately 40% of the total

chargeable area.


The building has 40% vacancy, so there is an opportunity for Knight Frank.

Page | 45

SectorsNo. of Units

Insurance 3Vacancy 2


SUPPLY ANALYSIS

Building Name: Aakash TowerAddress: Anandapur (near Ruby Hospital), E.M. bypass, Kolkata

Developer: PS Group

Building Specifics: Structure: B+G+6 Total Chargeable area: 142500 sq.ft Efficiency: 85% Floor Plate: 17800 Sq ft. Type of Project: Commercial Expected Completion date: Q4 2009.

Page | 46



Mitsubishi25%

Others50%

Vacancy25%

Demographics

Major Occupants: Mitsubishi Motors Ltd.

Overview:

The Building is a commercial type project with a chargeable area of 142500 sq ft. The structure of the building is G+4 floors. Provides basic amenities like lift, security, water supply. It has only 5 car parking space. Maintenance charge is included in rent. The agreement is leased basis. The asking rent is Rs. 70 per sq ft. The prices of the units are in a range of Rs.6500 to Rs. 9000 per sq ft. Presently 8 units of the building are vacant. 8 units of the building already booked by Mitsubishi Motors. 16 units of the units already booked by other offices.


The major portion of the building will be occupied by Mitsubishi Motors and most the spaces have already booked ,still around 8 units are still vacant. So there is an opportunity for Knight Frank.

Page | 47

SectorsArea. of Units

Mitsubishi 8Others 16Vacancy 8


AREA WISE ANALYSIS

iv. BANTALA SEZ

Bantala is situated on the Basanti Highway. It has achieved a SEZ status. BANTALA is famous for leather manufacturing, but lots of IT companies

are entering this site to set-up their office. It is the upcoming IT hub of West Bengal. It is a mix of IT Park and Leather industry. The Dhunseri Group is creating an IT SEZ here. Apart from Dhunseri, a host of infotech majors and infrastructure

developers have reserved space at the Jagmohan Dalmiya IT facility, which was carved out of the Calcutta Leather Complex. These include Cognizant (20 acres), Patni (14 acres), Tech Mahindra (12.12 acres) and developers of built-up space like Forum Projects (10.56 acres) and Kolkata IT SEZ Pvt Ltd (11.6acres).

CONNECTIVITY:

It is only 20Kms away from the main business hub of Kolkata.

It is situated near Basanti Highway. The buses to Kolkata are at regular interval. The airport is connected through E.M. bypass which is 14 Km away.

WHO INVESTED IN BANTALA IT SEZ

1) Yatra has invested in the FORUM IT SEZ at BANTALA, an upcoming IT corridor of Kolkata.

2) Technopolis2 is coming up at the BANTALA IT Park.

3) The IT SEZ spread over 130 acres , where industry players such as COGNIZANT TECHNOLOGIES, ROLTA and TECH MAHINDRA, are project will target companies that either have small space requirement or do not wish to set up their Own facilities.

4) As is INFINITY InfoTech parks limited that is developing the 122 acre “KOLKATA IT SEZ” at BANTALA. Infinity will be a 2.2 million sq. ft. IT SEZ and the project is currently in the design and development stage.

5) Cognizant is looking at investing Rs 76 crore at the park.

OUR VISIT AT BANTALA

Page | 48


We visited BANTALA, the new upcoming IT SEZ of Kolkata for our project report preparation. We surveyed the whole area in BANTALA. Most of the IT SEZ companies have not started their project yet, but TECH MAHINDRA is the first group which has started their construction project. The project is expected to be completed within Q3 2010.

DIGITAL MAPING

Page | 49


PICTURE OF UNDER CONSTRUCTIONAT PROJECT TECH MAHINDRA

Page | 50


SECTION –V

1. SWOT Analysis2. Recommendation3. Conclusion4. Bibliography

Page | 51


1. SWOT ANALYSIS OF KNIGHT FRANK (INDIA) PVT. LTD

SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. The usefulness of SWOT analysis is not limited to profit-seeking organizations. SWOT analysis may be used in any decision-making situation when a desired end-state (objective) has been defined. SWOT analysis may also be used in creating a recommendation during a viability study.

STRENGTH:

Knight Frank has a good reputation in the Market as a real estate consultancy firm. The company has a worldwide presence. This has underpinned its large and rising

customer base. The company had a best professional research team compared to the other players

in the market. The company had a wide variety service like Asset Management, Commercial Sales

and leasing, Corporate Advisory Services, Research and Consultancy, Valuation, Property and Facility management, International Investment.

Apart from that it provides clients with expert advice on all real estate related matters including to clients who want to own, occupy, invest or sell properties

Weakness:

In India, Knight Frank provide services through six offices located in Mumbai, Gurgaon (Delhi), Bangalore, Pune, Chennai and Hyderabad; which is not enough for a big country like India.

Less vacancy on the site may cut the opportunity for Knight Frank.

Opportunity:

Enter an agreement with the developers before the start of the project. Defining a product. Could start own real estate developing business. Develop new office to cover entire Indian real estate market.

Threats:

Major competition from other real estate consultancy firm. Local consultancy firm also eating up business for the big players like Knight Frank

Page | 52


2. RECOMMENDATION To increase its operation in India by opening new branch offices in major cities of

India. Knight Frank should promote its service through more advertisement. Kolkata’s real estate market is one of the emerging economies, with many new

commercial projects, SEZ development are coming up in the upcoming year. So it should put more focus on this market.

It should tie up with major IT/ITES and other companies who wish to expand their business in Kolkata and other destination in India.

Page | 53


3. CONCLUSION

Kolkata has been slowly but steadily catching up with the other metros of India in terms of real estate growth with a distinct indication of steady and healthy market. As the real estate market has started showing signs of stability, several IT and telecom companies have already started actively looking at space in the city, especially in Rajarhat and Salt Lake Sector V areas, for setting up operations.

The commercial market in Kolkata has witnessed large number of inquiries coming in from multinationals. Most of the property demands are from the domestic and international retail chains to set an upward trend in the commercial market. For MNCs and Corporates, apart from Salt Lake or Lansdowne Road parts of C R Avenue, Rawdon Street, and Ballygunge Circular Road are also set to get a more up market status.

In the coming days, demand for office space is expected to be generated by players such as call centre operators, insurance companies, information processing outfits and telecom sectors. A Sizeable demand has already been generated by entertainment-cum-shopping complexes, and this trend is likely to continue in the near future.

Around 12-15 IT SEZs coming up on the outskirt of Kolkata like Bantala, Rajarhat, and Batanagar by players like DLF, VIDEOCON, MANI GROUP,UNITECH etc

It is believed that Kolkata is on the threshold of modernization and is rapidly adapting to establish itself as a world-class city. This will continue to drive demand for space in the city and also rentals upwards.

Page | 54


4. BIBLIOGRAPHY

i. Book: Research Methodology by Uma Sekharanii. Magazine: Reality World- (Apr-June, 2009)

India Office Market by Knight Frank- Q1 2009iii. Website Reference:

www.google.comwww.knightfrank.comwww.sanjogproperties.comwww.wbtourism.comhttp://www.indianground.com/real_estate_india.aspxhttp://www.cushwake.ru/cwglobal/jsp/localHome.jsp?Country=2200179&Language=EN&_requestid=627172

Page | 55


Page | 56

Documents

Knight Frank Project Report