Construction Industry News
CBRE South Asia, an Indian property consultancy, in collaboration with CREDAI, released a joint study titled 'West Bengal: Leading the East's Growth Story' at the Statecon 2023 event in Kolkata. The report highlights the favorable political ecosystem, infrastructure progress and a promising business environment in West Bengal, which together promote better prospects for investments in various areas within real estate.
According to the report, West Bengal ranks third in India in terms of mineral production and accounts for about one-fifth of the country's total output. The state also accounts for 11% of the country's total coal reserves.
It is the sixth largest state in India in terms of economic size and is expected to have a GDP of Rs 17.13 trillion ($221.39 billion) in the financial year 2022-2023. This represents a compound annual growth rate (CAGR) of 11.54% between FY 2015-16 and FY 2022-23.
The state's growth can be attributed to the service sector, which contributed almost 52%, followed by the industrial sector (more than 30%). West Bengal is also home to over 900 IT companies, directly or indirectly employing over 145,000 people.
Thanks to its convenient location and exceptional accessibility, Kolkata maintains its status as a crucial commercial and financial center in the eastern region of India and is establishing itself as the epicenter of commercial real estate activities in West Bengal. The proximity to industrial areas and ports has also positioned the city as a prominent commercial center.
As of April-June 2023, Kolkata is one of the major players in industrial and logistics leasing in India, accounting for 8-12% of activity. This reflects the significant growth in the sector, which has made Kolkata a major hub for businesses and investors. This trend is expected to stimulate the local economy through employment and increased economic activity.
The city's strategic location, transportation infrastructure, economic trends, and demand for storage space all contribute to this rental trend. The arrival of international players has promoted the globalization of the sector, with the participation of local real estate developers as well.
While Kolkata maintains its position as the leading property market in the state, the momentum for infrastructure development, highlighted by projects such as the Andal airport and the Silicon project, coupled with favorable policies, has fueled property growth towards second-tier cities. Like Durgapur. . , Siliguri and Darjeeling. These cities have consistently attracted the attention of investors, holding promise for expansion beyond the capital.
