After recording five successive months of growth, home sale registrations in Kolkata in July slumped 18% than that June and 13% than that July last year. Realtors attributed the decline to the withdrawal of incentives by the state.
This was the first month when the govt’s withdrawal of incentives — 2% stamp duty cut and 10% reduction in circle rate since July 2021 — became effective. During the three years of incentives, over 1.4 lakh residential properties were registered in Kolkata.
In July, 3,506 units were registered at the state directorate of registrations and stamps revenue, while the figure was 4,292 the previous month. The registration figure in July 2023 was 4,036 and in July 2022, 6,709.Of the homes registered this July, the mid-sized ones of 501-1,000 sq ft comprised the largest pie at 47%, down from 51% last July. The share of small-sized units of up to 500 sq ft has, however, risen from 27% in July 2023 to 45%. On the other hand, large apartments of sizes exceeding 1,000 sq ft, which comprised 22% of units registered in July 2023, have slumped to only 8% of transactions.
The Bengal chapter of Credai has urged the state to reconsider the move to withdraw the incentive. “The stamp duty in Bengal is on the higher side compared to other states. We recommend rationalisation of stamp duty that would witness spike in sales and a better contribution to the state exchequer,” said Credai Bengal president Sushil Mohta.
Knight Frank India senior director east Abhijit Das said, “The Kolkata residential market, having seen the benefits of incentives, has reacted as expected to the withdrawal of the stamp duty benefits and change in circle rates.
The decline in registrations is expected to normalise in the subsequent months as buyers’ sentiments align with the change and we can hope to see a revival in registrations numbers soon, especially as we are at the cusp of the festive season. The overall economic growth and stability of the country will play its part in keeping the momentum of the market healthy in the coming months.”July’s top position in apartment registration tally was still held by the north zone with a share of 34%, followed by the south zone at 33% share. East zone’s share stayed stable at 11% as did Rajarhat’s share of 10%-11%. The west zone saw its share moderate from 8% to 6% a year. A similar trend was witnessed in central Kolkata.
