Kolkata: Performance of the residential real estate sector is getting stronger in the ongoing festive period in Greater Kolkata or Kolkata Metropolitan Area (KMA), a Knight Frank India, the leading real estate consultancy in the country, said.
Aided by the 2 pc stamp duty rebate, 4,683 apartment sales documents were registered in October 2021.
In October 2021, the number of residential sales deeds registered remained a little shy of September 2021, but the YoY growth of 87 pc surpassed the growth recorded in the previous month.
In September 2021, 4,846 apartment sales documents were registered in Greater Kolkata. Unlike the past trend, when the Durga Puja festivity period used to witness a lack of action in commercial activities in Kolkata, the prospect of savings on account of stamp duty cut led homebuyers to flock to registration offices in Oct 2021.
The rebound in confidence towards homeownership is indicative of increasing buyer demand which is vital for the growth of the real estate sector.
Given the homebuyer response towards this sop, the West Bengal state government has extended the stamp duty cut window by additional three months until January 31st, 2022. This has been done to combat the economic slowdown situation in the state due to the COVID-19 pandemic and provide relief to homebuyers. The stamp duty cut benefit will remain available for documents (except the documents for amalgamation of contiguous land)presented for registration before the registering authority by this date. The 10pc reduction in circle rates will also continue till January 31st, 2022, which will further incentivize homebuyers to sign the deals.
In terms of micro-markets, North dominated the % share of apartment sales deeds registered with a 43 pc share in monthly registrations. South emerged as the second-best performing micro-market with a 34 pc share of the pie. The peripherals’ residential growth story continues to advance as demand for new residential products in these micro-markets remains strong compared to others.
In terms of unit sizes, apartments above 46 sq m (500 sq ft), witnessed a 260pc YoY growth. While the apartment sizes up to 46 sq m (0-500 sq ft) registered percentage degrowth of 23pc unit sizes of 47-92 sq m (500-1,000 sq ft) and 93 sq m and above (1,000 sq ft and above) noted nearly 260 pc YoY growth for each. The bigger sized units continue to be the flavour of the festive season and pique the interest of domestic homebuyers and non-resident Indians (NRIs).
Demand stimulation measures in the form of historically low home loan interest rates and the festive vibe have improved the home buying appetite of consumers. Despite the fatal second wave earlier in 2021 and the fear of the third wave of the pandemic, residential sales deeds registered in the ten months of the calendar year 2021 doubled over 2020.
With the state government taking timely cognizance of the demands of the real estate industry stakeholders, this 3-month extension of the stamp duty rebate beyond October 30th, 2021, is a huge relief for homebuyers. Not only will it act as a demand catalyst for Diwali week, but it will also steer the sector out of the woods for a better 2022.
“The recent buoyancy in the residential market is a direct result of the stamp duty cut introduced in July 2021 by the West Bengal government. Encouraged by the recent extension of the stamp duty rebate till January 31, 2022, we are confident that the ongoing festive season will see greater momentum from home buyers. Demand stimulants such as that taken by the state government have a manifold impact, not only on the residential real estate sector but also on the economy at large. With sustained momentum in buying we expect supply to also pick pace leading to more employment and greater prosperity.” according to Knight Frank chairman Shishir Baijal.