Kolkata, Aug 22 (PTI) The expansion of Kolkata's metro network is set to give a major fillip to connectivity, spur housing demand, and boost office leasing activity, industry leaders said on Friday.

Prime Minister Narendra Modi will later on Friday inaugurate three new stretches — Sealdah to Esplanade (Green Line, 2.6 km), Noapara to Jai Hind Bimanbandar (Yellow Line, 6.77 km), and Hemanta Mukhopadhyay to Beleghata (Orange Line, 4.39 km) — marking a landmark infrastructure push for the city.

Residential property prices in the city have already surged by over 12 per cent in the past year, with metro-linked micro-markets such as East Kolkata, Rajarhat, and Joka/Behala outperforming broader trends, officials said.

In Howrah, property values have risen by 8 per cent, while commercial rates climbed as much as 30 per cent near new metro stations, they added.

Merlin Group MD Saket Mohta said connectivity will unlock new growth opportunities, while Emami Realty chief Nitesh Kumar said it would be a big boost for the city's real estate industry.

"Connectivity brings growth and prosperity. It opens new job opportunities and helps in the growth of healthcare, education, and other social sectors, as people from far-off areas can avail themselves of these facilities. The new metro lines will catapult residential sales to a new height, particularly in the suburbs where prices are affordable," he said.

Overall, Kolkata's residential segment saw significant growth in the first half of 2025, driven by a 105 per cent surge in new project launches and strong demand for mid-range and luxury properties. Prices in peripheral areas along the Southern Bypass and beyond will go up, and North Kolkata will see a spurt in new launches, Mohta added.

"While Q1 2025 saw a slight dip in total sales, this was due to an increase in new supply. The new metro lines will add momentum to the residential segment," he said.

"However, the availability of suitable land may be a challenge. Large tracts in areas like Sodepur, Kamarhati, and Titagarh — where industries have shut — can be unlocked for housing and commercial development with suitable policy support," Mohta added.

Emami Realty MD & CEO Nitesh Kumar said metro connectivity would be a "big boon" for the city's real estate industry.

"This will surely enhance connectivity and stimulate economic growth, eventually leading to strong real estate development in the region and Kolkata at large. To put things in perspective, Property cost in Delhi NCR, particularly central locations and outstations like Dwarka, Noida, and Gurgaon, appreciated by almost 150 per cent post-metro connectivity," he said.

He added that Mumbai MMR, especially central areas and suburbs like Andheri and Borivali, witnessed close to 120 per cent appreciation, while Bengaluru localities like Koramangala and Whitefield appreciated by almost 100 per cent.

"Kolkata, too, has seen central, south, Salt Lake, and Howrah appreciate by 150-200 per cent over the years after metro expansion. Surely, we will see the IT sector boom further in the near future," he said.

Credai West Bengal President Sushil Mohta said the expansion would reshape Kolkata's office market.

"The inauguration of new metro routes will connect some of Kolkata's busiest areas and bring a notable reduction in travel time while strengthening multimodal connectivity, benefitting lakhs of daily commuters. This will spur office growth in Sector V, Bypass, Rajarhat, and New Town. Sector V is going to be the new Dalhousie Square, while New Town will emerge as a new Park Street," he said.

"The enhanced network will link residential clusters with office hubs, making workplace access more convenient and expanding the catchment area for corporates to attract talent. Kolkata's office market already grew 60 per cent year-on-year in the first half of 2025, with a decade-high transaction volume of 1.4 million sq ft. We expect 2 million sq ft of leasing this year, driven by IT, BFSI, and Global Capability Centres (GCCs). The upcoming World Trade Center in Sector V adds to Bengal's pride, and we will also see malls and shopping complexes coming up in North Kolkata," he added.

Jain Group Executive Director Rishi Jain said, "Even though Joka Metro is incomplete, it has already given a fillip to realty demand in the area. In the last year, prices have appreciated by well over 12 per cent." PTI BSM MNB