Knight Frank India, the leading real estate consultancy in the country, noted that the residential property registrations in Greater Kolkata in the 12-month period of 2021 stood at 44,940 units, recording a growth of 64% compared to previous year. As expected, 56% of these units were registered since the introduction of the stamp duty cut in July 2021. The registration data is for residential sales documents registered and included transactions in both the primary and the secondary market. The 2% stamp duty rebate has resuscitated Kolkata’s residential real estate sector in the second half of the year as the city battled COVID-19 induced economic uncertainties.
After a brief lull in November 2021 due to festivals, there has been a significant recovery in housing registrations as per December 2021 statistics. December 2021 recorded a 248% month-on-month (MoM) growth in the number of residential sales deeds registered. Whilst there is still a 10% YoY decline compared to December 2020, there has been a strong growth on MoM basis. The stamp duty cut extension has been acting as a catalyst for transaction closures.
With the registration offices operational and the extension of stamp duty cut window to 31st January 2022 being known to prospective homebuyers, the buoyancy is back in the market. In Q4 2021, residential sales registrations largely remained at par with Q4 2020. In Q4 2021, the lull in November 2021 was balanced by the October 2021 numbers and the subsequent recovery in December 2021, culminating in only a minor 2% YoY decline.
In terms of unit sizes, apartments up to 46 sq m (0-500 sq ft), witnessed 62% YoY degrowth in December 2021. Unit sizes of 47-92 sq m (501-1,000 sq ft) and 93 sq m and above (1,001 sq ft and above) registered 67% and 73% YoY growth respectively. Looking at the yearly trend in 2021 also presents a similar picture, with apartments in 47-92 sq m (501-1,000 sq ft) and 93 sq m and above (1,001 sq ft and above) categories witnessing a substantial 209% and 230% YoY growth respectively.
It is not surprising that apartments above 46 sq m (500 sq ft) have attained a high double digit percentage growth over Dec 2020 period in Greater Kolkata. The pandemic has rendered bigger apartments preferrable amongst homebuyers across India and the same trend is playing out in Greater Kolkata as well. South and North micro-markets continued to garner the highest percentage share in residential sales deeds registered in December 2021 with a 40% and 31% share respectively. The northern and southern peripheral locations have become a cynosure for end-users since the pandemic outbreak. Prospective homebuyers have shown a greater inclination to relocate to well-developed peripherals if they get a bigger apartment as it does not disturb their homebuying budget. Peripheral locations near the Dum Dum Airport, Madhyamgram, Belgharia, Barasat, Bidhannagar locations such as South Dum Dum, and Sonarpur, Thakurpukur, Tangra and Tiljala have seen huge volume of residential sales registrations done in the 47-92 sq m (501 -1,000 sq ft) size bracket in December 2021.
The yearly scenario is not very different, as South micro-market has garnered one-third share of the residential sales deed registrations in 2021, while North holds a 31% share of the total.
Shishir Baijal, Chairman and Managing Director said, “Kolkata’s real estate market witnessed a healthy increase in property registrations in December 2021, after the reduced volume in November 2021. The mammoth 248% MoM growth over the previous month came largely due to the fact that extension about the stamp duty cut window became widely known amongst homebuyers. With one more month to go before the stamp duty cut window expires. While, we expect the registrations to remain healthy for January 2022, as it is the last month to avail discount on stamp duty, the possible mobility restrictions due to rising Omicron virus cases will be a factor impacting the property registration activity in the first month of the new year.”
