October marked a record high for monthly property registrations in Kolkata Metropolitan Area (KMA) this year and the second highest since the stamp duty cut was announced in July 2021.
The registration of 6,788 residential sales deeds in October 2022 marked a 45% volume growth over October 2021 and a 17% upswing over September 2021. The spike is attributed to registrations that got spilled over to October from September due to festivities.
Since the initial stamp duty cut announcement in July 2021, 69,743 residential properties have been registered in the city. August 2021 saw the highest registration at 7,316. The home-buying momentum is expected to sustain with the 2% stamp duty rebate extended till December 31, 2022.
The analysis of the figures shows that 97% of 2021’s total residential sales deeds have already been registered in 10 months in 2022. The numbers capture all residential sales documents registered with flat/apartment sizes mentioned, the registration data comprised transactions in both primary and secondary markets. Homes in the size range of 501-1,000 sq ft accounted for the maximum share of 44% of the total registrations in October 2022. The bigger units of over 1,001 sq ft comprised nearly one-third or 32% share, and smaller units of up to 500 sq ft comprised 24% share. All the size range categories witnessed a significant annual upswing in October 2022.
In line with the past trends, north and south zones continued to witness the maximum number of sales deeds registered in October with a 38% and 29% share respectively. Both these zones together comprised two-thirds of the properties registered during the month. Rajarhat’s share improved from 2% in October 2021 to 8% in October 2022. The share of properties registered increased in central and east zones, too.
Knight Frank India senior director (east) Abhijit Das said, “Kolkata is among the few markets nationally that has the stamp duty cut incentive. This will continue to enthuse home-buyers. Kolkata is the gateway market for business opportunities in east India. The government’s attention in context to attracting new investments will go a long way in sustaining and developing the housing market momentum.”
KFI chairman and managing director Shishir Baijal said, “While the increased home loan interest rate serves as a headwind for home-buyers, the extension of stamp duty rebate will continue to provide a cushion to them. The 2% stamp duty cut has been a crucial catalyst for purchase for almost a year and a half in Kolkata. This is also a win-win situation for developers as this demand cycle has been a boon for them in the face of increased cost of construction.”