September 28, 2023: A total of 102,743 apartments have been registered in the Kolkata Metropolitan Area (KMA) after the stamp duty rebate was introduced in 2021, mentioned a report by real estate consultancy company Knight Frank.
The report said more than two years after the rebate was introduced in the state budget, this key incentive continues to drive commercial activities and incentivise homebuyers even after the pandemic. After three consecutive months of an uptick in volume between May and July, an 11% month-on-month (MoM) decline in volume was recorded in August 2023. On a year-on-year (YoY) basis too, August 2023 recorded a 42% decline over August 2022.
The data includes transactions in both primary (fresh sale) and secondary (re-sale) markets for all residential apartments throughout all periods.
Residential sales deeds registered in July between May 2023 to August 2023
The Knight Frank report cited the data by the Directorate of Registrations and Stamps Revenue, Government of West Bengal. The number of residential sales deeds registered was 2,863 in May 2023, 3,437 in June 2023, 4,036 in July 2023 and 3,605 in August 2023. The data includes apartment sales documents registered with flat/ apartment sizes captured at the time of property registration.
Monthly residential sales deeds registered: July 2021 – August 2023
| Total Number of Residential Sales Deeds Registered | In KMA | MoM trend | YoY trend |
| July 2021 | 2,998 | 111% | 39% |
| August 2021 | 7,316 | 144% | 268% |
| September 2021 | 4,846 | -34% | 79% |
| October 2021 | 4,683 | -3% | 87% |
| November 2021 | 1,140 | -76% | -62% |
| December 2021 | 3,968 | 248% | -10% |
| January 2022 | 2,391 | -40% | -33% |
| February 2022 | 1,593 | -33% | -65% |
| March 2022 | 4,697 | 195% | -14% |
| April 2022 | 3,280 | -30% | -11% |
| May 2022 | 4,233 | 29% | 230% |
| June 2022 | 3,044 | -28% | 114% |
| July 2022 | 6,709 | 120% | 124% |
| August 2022 | 6,238 | -7% | -15% |
| September 2022 | 5,819 | -7% | 20% |
| October 2022 | 6,788 | 17% | 45% |
| November | 3,047 | -55% | 167% |
| December | 3,274 | 7% | -17% |
| January 2023 | 4,178 | 28% | 75% |
| February 2023 | 2,922 | -30% | 83% |
| March 2023 | 3,370 | 15% | -28% |
| April 2023 | 2,268 | -33% | -31% |
| May 2023 | 2,863 | 26% | -32% |
| June 2023 | 3,437 | 20% | 13% |
| July 2023 | 4,036 | 17% | -40% |
| August 2023 | 3,605 | -11% | -42% |
Source: Knight Frank India
Apartment size analysis comparison
In August 2023, apartments ranging from 501 to 1,000 square foot (sqft) constituted 48% of the total registrations compared to 49% during the year ago period. The share of smaller unit sizes, up to 500 sqft comprised 27% in August 2023 while it commanded a 25% share in August 2022. The repo rate pause has helped in gradual bounceback of demand in this category in 2023, the report said.
Units sized above 1,000 sqft comprised one-fourth share in the total registrations, which is at par with the year ago period. The share of larger homes continues to hold a substantial share in demand as a shift in buyer preferences since Covid continues to influence buying decisions.
Abhijit Das, senior director, East, Knight Frank India, said, “Prevalence of homebuying sentiment continues to be visible in property documents registered in Kolkata, despite moderation in August 2023. Homebuyers continue to prioritise home purchases to avail ongoing benefit of a low stamp duty levy. With the buyers’ profile largely comprising end-users, Kolkata remains a price-sensitive market driven by value. Therefore, continued stability in interest rates and the ongoing benefits of stamp duty will drive demand, especially in the affordable and mid-segment properties.”
The report mentioned that during August 2023, the South Zone dominated the micro-market with a 59% share of Kolkata’s total apartment registrations. In August 2022, the South Zone accounted for only 32% of the total registrations. However, the share of North Zone declined from 40% in August 2022 to 10% of total registrations in August 2023. As this zone is populated with affordable housing projects, moderation in its share has been witnessed due to the demand in this category in the past one year. In August 2023, the share of Central and Rajarhat zones increased to 7% and 6% respectively. Both these zones have apartment options in the mid-segment and high-end segments for homebuyers where stable demand has prevailed so far.
Top five locations in Aug 2023
According to the report, the top five locations in Kolkata include Thakurpukur, Sonarpur, Rajarhat, Behala and Jadavpur, comprising one-third of the apartment registration volume of August 2023.
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