KOLKATA: Rent of commercial spaces has dipped between 20% and 30% in various pockets of the central business district (CBD), like Brabourne Road, Canning Street, Pollock Street, Ezra Street, Kalakar Street, Madan Mohan Burman Street and areas around New Market since the pandemic.
Traders, real estate agents and market committees TOI spoke to attributed the sharp decline in rent to rampant encroachment by hawkers, not only the pavements but also the carriageway.
Several owners who want to sell off their properties are not even receiving offers on the market price of their establishments. Encroachments not only discourage buyers but also create a problem with vehicle parking.
Interestingly, while the legitimate shop owners are not getting fair rent, space to encroach and set up stalls is available at higher prices, of course through illegal channels.
People looking to rent properties in the CBD have told real estate agents that paying high rent was unviable as hawkers who sell the same wares at a much lower price have made business for legitimate shop owners a less prospective one.
“Rental value has declined in various pockets of the central business district where encroachment by hawkers is rampant. Potential tenants and buyers who contact us for properties have said the business in these pockets have dipped, so they are unwilling to pay the rent owners are asking for. Many commercial spaces are up for sale but owners are not getting buyers willing to pay the market price,” said Aslam Ahmed Khan, whose real estate company deals in ownership and rental properties in central Kolkata.
Commercial properties in the CBD have always been in high demand as the place has a high concentration of wholesale and retail markets. Hawkers have always been a problem but the menace has surged in recent times. In a November 28 order, Justice Amrita Sinha had asked the town-vending committee to ensure that two-thirds of the pavement in Grand Arcade must be left free for pedestrians.
“Hawkers are selling the same thing that we sell at much lower prices as they do not have to pay rent, taxes, power bill and other overhead costs. They have encroached in a manner that our shops cannot be seen for a distance. Even if a customer wants to visit, they will give up before crossing the maze of encroachers,” said the secretary of the traders’ association.
In the New Market area, too, rental value has declined by almost 25%. “Since the pandemic, hawkers have gone up by 50%. I have been planning to sell my shop due to ill health but very few buyers are willing to pay the market value,” said the owner of a shop near New Market.
