Elaborating on the city's prospects, Lottefier said, both foreign and outstation players are keeping a hawk's eye on its properties, primarily because of the labour cost, access to labour and real-estate cost.

"Nowadays, investors are expecting a return of 20-25% on projects and an 9-11% annual yield on their investments. The only factor, which will stop the investors from looking at Kolkata favourably, will be the rising realty prices across the board," Lottefier pointed out. In fact, about 30-40% of all foreign investors looking at India are also interested in having a presence in Kolkata.

Realty prices in Kolkata's suburbs is hovering around Rs 35-40 per sq ft It is expected to go up by almost 30% while the prices in central business district, now at Rs 60-70 per sq ft will see a 10-15% rise in 2007