Property registrations declined 33% month-on-month in Greater Kolkata with 1,593 apartment sale documents registered in February. Since the initial announcement of stamp duty reduction on July 7, 2021, many homebuyers waiting for demand stimulants had completed their property registration process early.
Since the rebate was introduced, 28,935 homes have been sold in Greater Kolkata till February. Despite the strong momentum in the initial months since the reduction in stamp duty, there has been a gradual decline, as many homebuyers have completed the process early. Also, since the sop is available till the end of March, sales in February were gradual as homebuyers did not have a sense of urgency to take advantage of the discount, according to findings by Knight Frank India.
The registration data captured is for all residential sales documents registered with flat/ apartment sizes mentioned and encompasses transactions in both the primary and secondary market.
Homes in the range of 501-1,000 square feet accounted for 43% of the total registrations in February, while those bigger than 1,000 sq ft accounted for approximately 32%. There has been a 67% year-on-year decline in both apartments up to 500 sq ft as well as unit sizes of 500-1,000 sq ft. Unit sizes above 1,000 sq ft registered a 61% y-o-y de-growth during the same period.
Shishir Baijal, chairman and managing director, Knight Frank India, said, “The demand stimulant measures taken by the West Bengal government have provided the much-needed push to the Kolkata residential market. This has been buttressed by historic low home loans as well as strengthening economic conditions, all leading to stronger demand in the market. Even though the registrations were lower in February 2022, the impetus to purchase new homes may strengthen in March 2022 as the sop expires on March 31, 2022.”
