West Bengal finance minister says Urban Land Act has to go

New Delhi: Swapan Dasgupta, Minister-in-charge, Finance Dept, Government of West Bengal, said the Urban Land (Ceiling and Regulation) Act, 1976, has to go as the state is looking to unlock land for development and attract fresh investments.

“We have certain laws which date back to the 70s, which the rest of India has scrapped. It is an impediment and a deterrent to development. It has to go,” Gupta said at Confederation of Real Estate Developers' Associations of India (CREDAI) national conclave.

Developers said due to the Act, it gets difficult to acquire large land parcels in the state, which results in leakage of revenue and also restrict institutional funding.


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“For nearly 50 years, we unfortunately fell off the map of India. Now we are back. We will make up for the lost time. I would not hesitate to say that Kolkata and West Bengal presents the greatest opportunity. It is a state which is crying out for modernisation. It is crying out for upgradation, and it is crying out to get back to the 21st century,” Gupta said.

The new government in West Bengal is expected to trigger a spurt in real estate activity in Kolkata and nearby cities of West Bengal, with developers betting on land reforms.

“We have to form several companies to acquire land here as the law restricts acquisition of more than 5,000 sq metre. We also need a township policy to grow like other metro cities. The city has a lot of potential and needs the government with positive mind set,” said Saket Mohta, managing director, Merlin Group and president of CREDAI, West Bengal.

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According to a joint report by Credai and Anarock, Indian real estate market has grown from USD 120 billion in 2017 to around USD 600 billion in 2025 and is projected to reach USD 1 trillion by 2030 and nearly USD 5.8 trillion by 2047. The total value of real estate under construction has increased more than five-fold, from USD 94 billion in 2009 to USD 503 billion in 2025. Real estate’s contribution to India’s GDP is projected to increase from 6% in 2017 to approximately 13% by 2030, while employment in the sector is expected to reach 30 million by 2030.

“The next phase of India’s urban growth will increasingly extend beyond the traditional metropolitan centres. Kolkata, with its economic depth and position as a gateway to eastern India, can play an important role in this transition. As infrastructure and connectivity improve across West Bengal, they can strengthen economic corridors, bring emerging cities into larger development networks and unlock new opportunities for housing, businesses and investment,” said Shekhar G. Patel, President, CREDAI.

Enhanced connectivity across Kolkata is fostering the emergence of new residential and commercial corridors, unlocking fresh investment opportunities and reshaping the urban landscape. The sector is likely to get further momentum if accompanied by swifter government approvals and efforts to improve the ease of doing business.

“We have already seen the land prices going up in Kolkata and the residential sale has also picked up,” said Boman Irani, Chairman, CREDAI.

The report also points to sustained residential demand, with sales value across the top seven cities rising from Rs. 2.35 lakh crore in FY22 to Rs. 6.10 lakh crore in FY26. Quarterly residential sales have remained above Rs. 1.3 lakh crore for seven consecutive quarters. In office, GCCs accounted for around 45% of leasing in H1 2026, while listed office REITs have expanded their combined leasable area nearly six-fold since FY19. Tier-II and Tier-III cities are also emerging as new centres of real estate activity, alongside the growth of data centres, warehousing and hospitality.