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
06
2. Executive Summary 07
3. Knight Frank (India) ltd. –Company Profile
08
SECTION- II
1. Objective of the study
10
2. Methodology 11
3. Limitation of Research
12
SECTION- III
1. Indian Real Estate Sector Synopsis
14 to 15
2. City Overview of Kolkata
16
3. Overview of the Commercial office Market in Kolkata
17 to 18
SECTION- IV
1. Analysis of Stock and Supply.
i. Rashbehari Connector
20 to 27
ii. Park Circus to Gariahat
28 to 38
iii. E.M. Bypass (Ruby Park)
39 to 46
Page | 4
iv. Bantala SEZ

47 to 49
SECTION- V
1. SWOT Analysis
51
2. Recommendation
52
3. Conclusion
53
4. Bibliography 54
SECTION –I
1. Introduction
2. Executive summary
3. 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,
Page | 6
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.
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.
Page | 7
 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.
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
Page | 8
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.
SECTION –II
1.Objective of the Study

2.Methodology
3.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.
2. METHODOLOGY
Page | 10
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 office
b. Secondary Sources:
i. From various magazines.
ii. By visiting and interviewing different developer and promoters
iii. From various websites.
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.
Page | 11
 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.
SECTION –III
Page | 12
1.Indian Real Estate Sector Synopsis

2.City Overview of Kolkata
3. Overview of the Commercial office Market in
Kolkata
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
Page | 13
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.
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
Page | 14
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.
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.
Page | 15
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 recent
Years there has been a surge of investments in the housing and
commercial infrastructure sector with several new projects coming up in
the city.
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
Page | 16
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.
The Average Rentals Value of Commercial Office spaces in Kolkata

Average
Area Rent (RS.)
AJC Bose Road 140
Bantala 45
Camac Street 150
EM Bypass 65
Gariahat Road 85
Park Street 140
Rajarhat 50
Rashbehari Connetor 60
Saltlake 70
Theatre Road 150
Topsia 60
Ultadanga 90
Page | 17
SECTION –IV
1.Analysis of Stock and Supply

iv. Bantala SEZ
1. ANALYSIS OF STOCK AND SUPPLY

Page | 18
Area Wise Analysis:

• 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.
Page | 19
Location Analysis:
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
Sectors No. Units

Banks 5
IT 1
Finance 1
Others 2
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
Page | 20
 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
DIGITAL MAPING
Page | 21
Page | 22
Stock Analysis:
1. Building Name: Nilima
Address: 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 | 23
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
Project Name: Acropolis
Address: Rash Behari Connector, Kolkata- 107.
Page | 24
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:
 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.
Page | 25
 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.
Area Wise Analysis

Page | 26
• 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.
• 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.
• The rental value is ranging
between Rs. 45 to Rs. 66
per Sq.ft. per month.
• Average Outright sold Value
ranging between Rs. 5000-
Rs.8000 per sq ft.
Location Analysis
Connectivity
 The area between Park to Gariahat is one of the posh locality in
Kolkata.
Page | 27
 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.
Demographics: Sector wise
Page | 28
No. of
Sector Units
Banking 12
Construction 2
Consultancy 2
Consumer
electronics 1
Engineering 7
Entertainmen
t 1
Export 6
Financial 3
Healthcare 5
Industries 2
Insurance 4
IT 1
Manufacturin
g 5
others 9
Service 1
Telecom 1
Government 5
Total Units 67
Area Study:
Page | 29
 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 | 30
Park Circus to Gariahat: Micro Market
Page | 31
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 | 32
DIGITAL MAPING
Page | 33
No.
of
Sectors Units
Banking 1
Constructio
n 1
Consumer
electronics 1
Engineering 4
Export 4
Financial 3
Manufacturi
ng 1
others 1
.
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 asking rent is between Rs.54 to Rs. 66 per sq ft.
ft.
The building fully occupied, so there is no opportunity for Knight Frank.
Page | 34
2. Building Name: BBDO

Address: 9, Syed Amir Ali Avenue, Kolkata-700 017
Building Specifics:
• Structure: G+4
• Efficiency: 91%
• Floor Plate: 1060 Sq ft.
• Type of Project: Residential cum Commercial
Page | 35
No. of
Sector Units
Banking 1
BPO 1
Construction 1
Shipping 1
Government
Office 3
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.
 Provides basic amenities like lift, water supply.
 The asking rent is ranging between Rs. 55 to Rs. 60 per sq ft.
ft.
 No vacancy available in this building.
The building fully occupied, so there is no opportunity for Knight

Frank.
DIGITAL MAPING
Page | 36
Building: BBDO
AREA WISE ANALYSIS
Page | 37

• 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.
 Due to non-availability of office space in
areas like Park Street & Dalhousie, most
company prefer to this area for their
office.
 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.
 Average Outright sold Value ranging between Rs. 3500- Rs.7000 per
sq ft.
LOCATION ANALYSIS
Connectivity
Page | 38
 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
No.
of
Sectors Units
Insurance 1
Consultanc
y 1
Banking 1
Automobil
e 3
FMCG 2
Constructi
on 1
Industry 1
.
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.
E.M. Bypass (Ruby): Micro Market
Page | 39
DIGITAL MAPING
Page | 40
STOCK ANALYSIS
Page | 41
Building Name: WBVHA

Address: Anandapur (near Ruby Hospital), E.M. bypass, Kolkata.
Developer: Life line Enterprise
Building Specifics:
• Structure: G+4
• Efficiency: 75%
Page | 42
No.
of
Sectors Units
Insurance 3
Vacancy 2
.
Major Occupants: Aviva Life Insurance Company.
Overview:

6000 sq ft.
 It has only 5 car parking space.
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.
SUPPLY ANALYSIS
Building Name: Aakash Tower

Address: Anandapur (near Ruby Hospital), E.M. bypass, Kolkata
Page | 43
Developer: PS Group
Building Specifics:
• Structure: B+G+6
• Efficiency: 85%
• Expected Completion date: Q4 2009.
Sectors Area.
Page | 44
of
Units
Mitsubishi 8
Others 16
Vacancy 8
Major Occupants: Mitsubishi Motors Ltd.
Overview:

142500 sq ft.
 It has only 5 car parking space.
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.
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.
Page | 45
• 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
• 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.
Page | 46
DIGITAL MAPING
PICTURE OF UNDER CONSTRUCTIONAT PROJECT TECH MAHINDRA
Page | 47
Page | 48
SECTION –V
1. SWOT Analysis
2. Recommendation
3. Conclusion
4. Bibliography
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.
Page | 49
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
2. RECOMMENDATION
Page | 50
• 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.
3. CONCLUSION
Page | 51
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 | 52
4. BIBLIOGRAPHY
i. Book: Research Methodology by Uma Sekharan

ii. Magazine: Reality World- (Apr-June, 2009)
India Office Market by Knight Frank- Q1 2009
iii. Website Reference:
www.google.com
www.knightfrank.com
www.sanjogproperties.com
www.wbtourism.com
http://www.indianground.com/real_estate_india.aspx
http://www.cushwake.ru/cwglobal/jsp/localHome.jsp?Count
ry=2200179&Language=EN&_requestid=627172
Page | 53
Page | 54

Knight Frank Project Report

Uploaded by

Copyright:

Available Formats

Knight Frank Project Report

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Knight Frank Project Report

Uploaded by

Copyright:

Available Formats

Micro Market Research Of Commercial Office Market in Kolkata

My sincere gratitude to Mr. Samantak Das (National Head, Research,

I, Saurav Goswami a MBA 2nd Semester student of Eastern

Date: 15th July 2009 Saurav

iv. Bantala SEZ

HSBC Electronic Data Processing India (HDPI), Computer Associates, Siemens,

The newly developed Rajarhat area is estimated to dominate the office

 The objective of the study is to analyze the commercial office

Knight Frank's objective is to be the world's leading property adviser,

1.Objective of the Study

1. OBJECTIVE OF THE STUDY:

To conduct a successful research the selection of method is very

Sample Technique: Random Sampling

Sample Frame: Data collected by interviewing the tenants and

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

Sample unit: From various stock and supply buildings.

Sample Size:80 Units

Sample Area: Rashbehari Connector, Park Circus to Gariahat, Ruby Park

3. LIMITATION OF THE RESEARCH

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

1.Indian Real Estate Sector Synopsis

1. SYNOPSIS OF INDIAN COMMERCIAL REAL ESTATE

after agriculture in India. This budding sector is today witnessing

Kolkata city had a population of 4,580,544 of which 55% of the population

It also had water transport system

Kolkata is home to many industrial units operated by large Indian

3. OVERVIEW OF THE COMMERCIAL OFFICE MARKET IN

The secondary micro-market, comprising EM bypass, Kasba-Gariahat and

The Average Rentals Value of Commercial Office spaces in Kolkata

1.Analysis of Stock and Supply

1. ANALYSIS OF STOCK AND SUPPLY

Area Wise Analysis:

Demographics: Sector wise

Sectors No. Units

Major occupants: Siemens , Eureka Forbes, Suryamukhi Finance, Bank of

 Rashbehari Connector the growing business destination for Kolkata.

Rashbehari Connector: Micro Market

Developer: Gitanjoli Contruction

 The Building is a residential cum commercial with a chargeable area

Opportunity for Knight Frank:

Developer: Merlin Group

 The Building is a retail mall cum commercial office complex with a

 This project is a PPP (Private-Public Partnership) venture between

Opportunity for Knight Frank:

Area Wise Analysis

 This road is one of the busiest roads in Kolkata.

Demographics: Sector wise

 Park Circus area is developing as a business destination for Kolkata.

Park Circus to Gariahat: Micro Market

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

Developer: Singhal Contruction Co.

Major Occupants: Oriental Bank of Commerce, Sony India ltd, R.K.

 The Building is a commercial type project with a chargeable area of

Opportunity for Knight Frank:

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

2. Building Name: BBDO

Major Occupants: State Bank of India, Exploretech, Hindusthan

 The Building is a commercial cum residential type project with a

Opportunity for Knight Frank:

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